Taxation in the Netherlands

Each month you pay payroll tax and social security contributions on your wages, benefits or pension. The following year, you file a tax return for the past year. This allows the Dutch tax authorities to calculate whether the amount you paid in payroll tax and social security contributions is correct. Then this is settled and you get money back or have to pay extra. We call this process the 'belastingaangifte' (tax return).

If you received a letter from the tax authorities telling you to file a tax return, you must do so. If you have not received a letter, you do not have to. You can file tax returns using your

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If you are employed by an employer, you are entitled to a wage tax credit. Due to this discount, you pay less payroll taxes and get paid more wages. You can apply for this discount from your employer. If you work for several employers at the same time, you can only apply for wage tax credits from one employer.

If you rent a property independently, you probably have to pay municipal taxes. The number and amount of taxes varies by municipality.

Under certain circumstances, municipal taxes may be reduced or waived. The municipality assesses whether you qualify for reduction or remission. This assessment can differ from one municipality to another. The municipality will look at your income and assets and calculate what you could pay. If you would like more information about reduction or remission of municipal taxes, contact your municipality.