Workers to see higher take-home pay next year due to Dutch tax changes
People working in the Netherlands will receive slightly higher take-home pay in 2026, thanks to changes to the Dutch income tax system.
Net salaries in the Netherlands will rise next year
According to the payroll services firm ADP, net salaries in the Netherlands will go up next year for many people, as the earnings threshold for income taxes rises and the lower rate of income tax drops from 35,82 to 35,75 percent.
The change will see someone earning the average monthly gross salary of 3.704 euros take home an extra 26 euros per month. Anyone who earns twice as much (7.408 euros) will take home an additional 37 euros per month, and those earning three times as much (11.112 euros) will receive an extra 16 euros in their payslip.
Pensioners and people earning minimum wage will also benefit from higher incomes in 2026. Healthcare contributions for pensioners are going down from 5,26 percent to 4,85 percent (equating to a saving of around 5 euros per month on a pension benefit of 1.000 euros per month).
The minimum wage is also going up from 14,40 to 14,71 euros per hour. Someone who works 36 hours per week will receive an extra 46 euros per month.
What is changing in the Dutch income tax system in 2026?
The new tax measures outlined by the Dutch government include a slightly lower tax rate for the first income tax bracket. The tax rate in the second bracket is going up, but the threshold is also increasing.
"This means you'll pay slightly more tax on income from 38.883 euros in 2026, but it will take longer before you reach the third bracket with the top rate of 49,50 percent," Karin Stam, a law and regulation expert at ADP, told AD.
Editor in chief at IamExpat Media