If you work or receive benefits in the Netherlands, you pay taxes. Once a year you must file your own income tax return. Read here how this works.
You have to pay taxes on your income. If you work for an employer, tax is automatically paid on your wages. This also happens automatically if you have benefits. If you are an entrepreneur, you have to calculate and pay tax yourself.
Filing tax returns
Once per year the Dutch tax authorities will ask you to fill in your data about your income digitally. This is called the undefinedbelastingaangifteundefined. You have to do this every year between 1 March and 1 April. The tax authorities calculate whether you paid enough tax on your income last year. Sometimes you have to pay extra or you get a refund.
The Dutch tax authorities can help you fill in your undefinedbelastingaangifteundefined. You can make an appointment for this via the Tax Information Line: (0800) 05 43. You can call between 08:00 and 20:00 from Monday to Thursday, and on Fridays between 08:00 and 17:00.
Getting money back
If you have overpaid income tax, you can get money back from the Dutch tax authorities. This is called a undefinedbelastingteruggaveundefined.
If you live in an asylum seekersundefined centre (AZC) for part of the year, you can use the undefinedM-formundefined to get a undefinedbelastingteruggaveundefined. The undefinedM-formundefined is a form you fill in in the year of emigration or immigration.
Normally, you have to submit the undefinedM-formundefined to the Dutch tax authorities by 1 July of the following year. Please note: it may be that the municipality sees that refund as income. The municipality will deduct this from your benefit. Check with the municipality before filling in the form.
Taxes on your salary
If you work for an employer, you automatically pay part of your salary to the government. This is called tax. The rate for taxable income from work is an increasing rate with two brackets. The higher your income is, the more tax you have to pay.
This much tax you have to pay
€0 to €73,031 is taxed at 36.93 per cent.
€73,031 and above is taxed at 49.50 per cent.
Wage tax deduction
If you work in salaried employment in the Netherlands, you are entitled to a discount on your wage tax. This is called undefinedloonheffingskortingundefined (wage tax deduction). You can apply for this discount with your employer, or through the Dutch tax authorities. Your employer then pays less tax, so you get more money.
Your wage tax deduction is calculated on the basis of your income. The maximum labour tax deduction is €5,052 per year. From an income of € 37,697, the labour tax deduction becomes progressively lower. How much wage tax deduction is applied to you therefore depends on your salary.
Please note: if you work for multiple employers at the same time, you can only claim the undefinedloonheffingskortingundefined from one employer. If you would like to make use of the undefinedloonheffingskortingundefined, please indicate this to your employer.