About taxes in Netherlands
The Netherlands operates a Box 1 progressive income tax system on employment income. For 2025, earnings up to €75,518 are taxed at roughly 36.97%, and income above that at 49.50%. Most expats can apply for the 30% ruling — a significant tax facility that exempts up to 30% of qualifying gross salary from taxation for new highly-skilled migrants, valid for up to five years. To qualify you generally need a minimum gross salary (€46,107 in 2025, or €35,048 if you're under 30 with a master's degree). Dutch employees also receive a mandatory 8% holiday allowance ("vakantiegeld"), typically paid out in May or June. Employee social contributions are largely embedded into wage tax, while basic health insurance ("zorgverzekering") is purchased privately for around €130–€160 per month and is not deducted from your payslip. Two automatic credits — the general tax credit ("algemene heffingskorting") and the labour credit ("arbeidskorting") — reduce the effective burden, especially at lower incomes. Toggle the holiday allowance and 30% ruling in the calculator to see how each affects your monthly net.