Your payslip shows a gross figure well above what lands in your account. The gap is no secret, but it hides in a mix of tax, contributions and credits. Here is how the system works in the Netherlands for the 2026 tax year, with the current bands and a table of what you keep at different salaries.
Gross versus net
Gross pay (brutoloon) is the amount your employer agreed with you for your work, before any deductions. Net is what you actually receive. Three large items sit between those two figures: the payroll levy (loonheffing, a combination of income tax and national insurance contributions), the Health Insurance Act contribution (Zorgverzekeringswet, or Zvw), and any pension premiums or contributions for unemployment (WW) and disability (WIA) insurance.
Want to work out the difference quickly for your situation? Try the gross to net calculator from National Calculators. You enter your gross pay and see what is left straight away.
The three bands in box 1
Box 1 covers your income from work and home ownership and has had three rate bands since 2025, up from two. For 2026 the thresholds and rates, for those below state pension age, are:
- Band 1: up to 38,883 euros, rate 35.75%
- Band 2: from 38,883 to 78,426 euros, rate 37.56%
- Band 3: above 78,426 euros, rate 49.50%
The band 1 rate looks high, but it already includes the national insurance contributions (premies volksverzekeringen). People who have reached the state pension age (AOW) pay a much lower percentage on the same band, because they no longer pay the AOW contribution. The official rates are on the Belastingdienst site, the Dutch tax authority.
National insurance contributions
The contributions in band 1 cover the basic social provisions:
- AOW (old-age pension): 17.90%
- Anw (surviving dependants): 0.10%
- Wlz (long-term care): 9.65%
That comes to 27.65% together. On top sits 8.10% income tax, which leads to the band 1 rate of 35.75%. Once you reach state pension age the 17.90% AOW contribution falls away, so the band 1 rate drops to 17.85% (8.10% income tax plus 0.10% Anw and 9.65% Wlz), while bands 2 and 3 stay the same. That is why a pensioner keeps noticeably more of the same gross income. Alongside these, your employer withholds the income-dependent Zvw health contribution. Pension through your employer and any WW or WIA premiums are separate items on your payslip.
Tax credits
Tax credits (heffingskortingen) reduce the tax you owe. Two matter for most employees:
- General tax credit (algemene heffingskorting): in 2026 a maximum of 3,115 euros. From 29,736 euros of income it tapers down to zero at 78,426 euros.
- Employment tax credit (arbeidskorting): in 2026 a maximum of 5,685 euros, reached around 45,592 euros of earned income and then tapered to zero at 132,920 euros. This applies only when you work.
There are also specific credits, for example for older people, single parents or those on a low income. A full overview is at Rijksoverheid.nl. For a calculation per situation, use the income tax calculator from National Calculators.
What changed for 2026?
The three-band structure stays, but the amounts have moved with inflation. The band 1 threshold rose from 38,441 to 38,883 euros and band 2 from 76,817 to 78,426 euros. The band 1 rate eased from 35.82% to 35.75%, band 2 rose from 37.48% to 37.56%, and the top rate held at 49.50%. The general tax credit went up to 3,115 euros and the employment tax credit to 5,685 euros. The official figures are in the 2026 Tax Plan (Belastingplan) and the Belastingdienst rate table.
A short worked example
Say you earn 45,000 euros gross a year. On the first 38,883 euros you pay 35.75%, about 13,901 euros. On the remaining 6,117 euros you pay 37.56%, about 2,298 euros. Your gross tax burden comes to 16,199 euros. You then subtract the tax credits: the general credit of about 2,138 euros and the employment credit of nearly 5,674 euros, roughly 7,812 euros together. What remains is 8,386 euros of payroll levy, so a net salary of 36,614 euros, about 3,051 euros a month at an effective rate of 18.6%. Your employer withholds this monthly, with pension and Zvw running alongside.
Take-home pay at different salaries, 2026
The table below comes from the same calculation as the calculator, on the 2026 Belastingdienst rates, for an employee below state pension age with no extra credits.
| Gross salary | Payroll levy | Net salary | A month |
|---|---|---|---|
| 30,000 euros | 2,246 euros | 27,754 euros | 2,313 euros |
| 45,000 euros | 8,386 euros | 36,614 euros | 3,051 euros |
| 60,000 euros | 15,906 euros | 44,094 euros | 3,674 euros |
| 78,426 euros | 25,206 euros | 53,220 euros | 4,435 euros |
| 100,000 euros | 37,289 euros | 62,711 euros | 5,226 euros |
The effective rate climbs from 7.5% at 30,000 euros to 37.3% at 100,000 euros, as more income falls into the higher bands and the tax credits taper away. To see your own figure, enter it in the gross to net calculator or look at the tax alone with the income tax calculator.
FAQ
Why is my net pay lower than someone else’s on the same gross?
Pension scheme, age (AOW), the tax addition for a company car and specific tax credits affect the net amount strongly, even at the same gross figure.
Do holiday pay and a thirteenth month count toward my annual income?
Yes. Holiday pay (vakantiegeld) and bonuses are part of your taxable annual income and can, together with your salary, partly fall into a higher band.
When do I get money back from the Belastingdienst?
Mostly if you received fewer tax credits during the year than you were entitled to, for example through changing employers, or if you have mortgage interest relief for an owner-occupied home.
How does my net pay change after state pension age?
Once you reach state pension age (AOW) you stop paying the 17.90% AOW contribution, so the first-band rate falls from 35.75% to 17.85%. On the same gross income a pensioner therefore keeps more than someone still liable for the contribution, while the rates in bands 2 and 3 are unchanged. Check your own case with the gross to net calculator.