Do you need to file income taxes in the Netherlands?

The Dutch tax season officially starts on March 1, and the standard deadline for submitting your income tax return is before May 1. Normally, you will be filing for the previous calendar year, meaning that in 2026, you file a tax return submitting your personal income earned in 2025. If you migrated to or from the Netherlands during 2025, the standard filing deadline is extended to July 1, 2026. 

When are you obligated to file income taxes in the Netherlands?

Generally, the Dutch Tax administration issues a request for you to file your tax return via email or regular mail (the famous dreaded blue envelopes), which informs you: "U moet een aangifte inkomstenbelasting doen" (You need to file your income tax return). 

You may not always receive said envelope. However, not receiving a blue envelope does not mean you are exempt. If you have other income or assets, you are still expected to file income taxes. 

Even if you didn't receive a message from the Belastingdienst, and you have no other income or assets, it's still smart to check whether you're entitled to a refund!

How do you file income taxes in the Netherlands?

If you are obligated to, or want to, file your income taxes in the Netherlands, you can do so yourself or with the help of a professional tax advisor. Here's how it's done:

1. Create or access your DigiD 

A DigiD is your digital identification for interacting with the Dutch government. If you don’t have a DigiD, apply for one at digid.nl.

2. Gather all the required documents 

Ensure you have the following documents ready:

• Annual income statement (jaaropgave) from your employer(s). If you changed jobs in 2025, you will need one from each employer.
• Details of any other income, assets or deductions.
• Information on mortgages, if applicable.
• Records of deductible expenses, such as healthcare costs or charitable donations.

3. Log in to the tax authority’s portal (Belastingdienst) 

Access the tax filing system via Mijn Belastingdienst. Log in with your DigiD.

4. Add additional information 

If you have any income from abroad, freelance work, special tax deductions, or financial details such as the value of your depository receipts to shares, enter them manually.

5. Submit your tax return 

Submit your return before the May 1 (or July 1) deadline, or request an extension.

6. Seek professional help if needed 

Tax laws in the Netherlands can be complex, especially for expats. If you have questions about double tax treaties, the non-resident tax status or specific tax deductions, consider consulting a tax advisor.

Get in touch with Taxt

What are the three boxes?

Income taxes are levied in three "boxes" in the Netherlands:

Box 1: 37,48% - 49,5% tax rate

In Box 1, your income from (self-)employment, (primary) home ownership, periodic pension/annuity payments and other personal income is taxed.

Income taxes are progressive in the Netherlands, which means that the more you earn, the more you pay. The highest tax rate is 49,5% and applies to income above €76.817 for the 2025 tax year.

Various deductions can be made to reduce your taxable income in Box 1. The most common deductions in this box are: 

• Mortgage interest on the mortgage for your primary residence
• Medical expenses not covered by your insurance company
• Partner alimony
• Entrepreneurial deductions (such as the general self-employment deduction, the start-up deduction or the small business profit exemption) 

Box 2: 24,5% - 31% tax rate

In Box 2, income from substantial shareholdings in a company (inkomen uit aanmerkelijk belang) is taxed. An individual is considered to have a substantial shareholding if they, either personally or with their tax partner, directly or indirectly hold at least 5% of a certain class of shares in the share capital of a limited liability company.

Dividends paid from a substantial shareholding are the most common type of Box 2 income. The other is profit from capital gains arising from the sale of shares of a substantial shareholding. 

Box 3: 36% tax rate 

In Box 3, income from savings and investments (in other words, your wealth) is taxed. The standard method of taxing income in Box 3 is based on taxation of a fictional income deemed to be generated by the asset.

The tax is payable on the fictional returns calculated over a percentage of the value of the asset on January 1 of the applicable tax year. The current system is called the savings variant. 

For tax year 2025, the fictional income percentages used for the three categories in which Box 3 income is taxed are as follows:

• 1,44% fictional interest on bank accounts
• 5,88% fictional return for investments, such as investment real estate and all other assets
• 2,62% interest (negative return) for debts 

Box 3 income from savings and investments is only taxable if the net difference between assets and debts exceeds the tax-free thresholds, which is €57.684 per person, or €115.368 for tax partners, for the 2025 tax year.

Opting for taxation over the actual return on assets 

For 2025, it is possible to request Box 3 taxation based on the actual return from assets rather than the fictional return. If taxation based on actual returns is lower, it might be beneficial for you!

Taxation based on actual returns from assets is only possible for all of your assets; it is not possible to request this for part of your assets.

Actual returns out of assets are:

• Received interest
• Dividends
• Rent
• Unrealised and realised capital gains
• Profits or losses resulting from currency fluctuations (if you hold assets in different currencies than the euro)

Keep this in mind when filing your income tax return for 2025!