Income tax (Netherlands)
The tax burden on income ( inkomstenastening ) consists of wage tax ( loonheffing ) and social contributions (state pension, orphans and insurance for extraordinary medical expenses ). There are no tax brackets, taxpayers are taxed individually (no spouse splitting ). The social security contributions are deducted from the gross wage together with wage tax. Unemployment insurance contributions are paid by the employer, while health insurance contributions are paid by the employee.
Tax rates
The income limits and tax rates for annual income from January 1, 2015:
Taxpayers under 65 years of age
| from | to | Income tax | Social security contributions | Total |
|---|---|---|---|---|
| 0 € | € 19,822 | 8.35% | 28.15% | 36.50% |
| € 19,822 | € 33,589 | 13.85% | 28.15% | 42.00% |
| € 33,589 | € 57,585 | 42.00% | 0.00% | 42.00% |
| € 57,585 | 52.00% | 0.00% | 52.00% |
Taxpayers over 65 years of age
| from | to | Income tax | Social security contributions | Total |
|---|---|---|---|---|
| 0 € | € 19,822 | 8.35% | 10.25% | 18.60% |
| € 19,822 | € 33,589 | 13.85% | 10.25% | 24.10% |
| € 33,589 | € 57,585 | 42.00% | 0.00% | 42.00% |
| € 57,585 | 52.00% | 0.00% | 52.00% |
