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NL Tax 2021

Netherlands Tax Tables 2021 - Tax Rates and Thresholds in Netherlands

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This page contains the tax table information used for the calculation of tax and payroll deductions in Netherlands in 2021. These tax tables are used for the tax and payroll calculators published on iCalculator™ NL, these tools are provided for your free use on our website. If you would like additional tax table information added to the tax calculators for Netherlands or would like to add to or suggest amendments to the information herein then please contact us.

Netherlands Personal Income Tax Tables in 2021

The Income tax rates and personal allowances in Netherlands are updated annually with new tax tables published for Resident and Non-resident taxpayers. The Tax tables below include the tax rates, thresholds and allowances included in the Netherlands Tax Calculator 2021.

Netherlands Residents Income Tax Tables in 2021
Personal Income Tax Rates and Thresholds (Annual)
Tax RateTaxable Income Threshold
9.7%Income from € 0.000.00to € 35,129.00
37.35%Income from € 35,129.01 to € 68,507.00
49.5%Income from € 68,507.01 and above
Netherlands Non-residents Income Tax Tables in 2021
Personal Income Tax Rates and Thresholds (Annual)
Tax RateTaxable Income Threshold
9.7%Income from € 0.000.00to € 35,129.00
37.35%Income from € 35,129.01 to € 68,507.00
49.5%Income from € 68,507.01 and above

The Dutch 30% Ruling for Expatriates

The 30% ruling is a tax advantage in the Netherlands designed for expatriate employees working in the country. This overview provides a comprehensive explanation of its purpose, eligibility criteria, and benefits.

Purpose of the 30% Ruling

The 30% ruling is intended to attract highly skilled professionals to the Netherlands by compensating for the extra costs associated with working abroad, often referred to as "extraterritorial costs."

Eligibility Criteria

To qualify for the 30% ruling, both the employee and employer must meet specific criteria:

  • Employee Requirements: The employee must have skills or expertise considered scarce in the Dutch labor market. Typically, this is evidenced by a higher educational level and relevant work experience.
  • Non-residency Requirement: Before employment in the Netherlands, the employee must have lived more than 150 kilometers from the Dutch border.
  • Employment Contract: The employee and employer must agree to apply the 30% ruling in the employment contract.

Benefits of the 30% Ruling

Under the 30% ruling, several benefits are available:

  • Tax Exemption: 30% of the gross salary is tax-free. The remaining 70% is subject to regular Dutch income tax. You can calculate the impact of this deduction using the 2021 tax calculator for the Netherlands, just select Non-resident and select the 30% rule button.
  • Partial Non-Residency Status: The employee may opt for partial non-residency status for tax purposes, which can be beneficial for income from savings and investments.
  • Other Benefits: This may include exemptions for specific forms of income and the ability to exchange a foreign driver’s license without taking a driving test in the Netherlands.

The 30% ruling is valid for a maximum period of five years. However, changes in employment or personal circumstances can affect eligibility. Expatriates are advised to consult with tax professionals to ensure eligibility and complaince with the legislation.

Netherlands Social Security Rates in 2021

In the Netherlands, both employees and employers contribute to various social security funds. These contributions support a range of public services and social welfare programs. Below is an overview of the primary types of social security contributions and their respective purposes, without specifying the rates.

Netherlands Social Security in 2021: Rates for Employers and Employees
Social security categoryEmployeeEmployerTotal
AOW (Old Age Insurance)17.9%0%17.9%
Anw (Survivor Dependant Insurance)1%0%1%
Wlz (Long Medical Care Insurance)9.65%0%9.65%
Zvw (Health Insurance)0%7%7%
WW (Unemployment Insurance)0%3.6%3.6%
WW sector Fund0%0.77%0.77%
WAO/WIA (Disability Insurance)0%6.96%6.96%
Whk (Average)0%1.25%1.25%
Netherlands Social Security in 2021: Earnings Thresholds for Employers and Employees
Social security categoryEmployeeEmployer
Min.Max.Min.Max.
AOW (Old Age Insurance)n/a€ 35,129.00n/an/a
Anw (Survivor Dependant Insurance)n/a€ 35,129.00n/an/a
Wlz (Long Medical Care Insurance)n/a€ 35,129.00n/an/a
Zvw (Health Insurance)n/an/an/a€ 59,706.00
WW (Unemployment Insurance)n/an/an/a€ 76,264.00
WW sector Fundn/an/an/a€ 55,928.00
WAO/WIA (Disability Insurance)n/an/an/a€ 59,706.00
Whk (Average)n/an/an/a€ 45,692.00

National Insurance Contributions

National Insurance Contributions are mandatory for all residents. These contributions fund:

  • Old Age Pension (AOW): Provides pensions to individuals upon reaching retirement age.
  • Survivor Benefits (ANW): Offers financial support to surviving dependents of a deceased contributor.
  • Long-term Care (WLZ): Covers long-term nursing and care for individuals with chronic illnesses or disabilities.

Employee Insurance Contributions

Employee insurance contributions are primarily paid by employers and are aimed at employee welfare. They include:

  • Unemployment Insurance (WW): Provides financial support to individuals who have lost their job.
  • Sickness and Disability Benefits (WIA/WAO): Offers income support to employees who are unable to work due to sickness or disability.
  • Health Insurance Contribution: Employers contribute to the national health insurance system to help cover public healthcare costs.

Healthcare Insurance Contributions

Both employees and employers contribute to healthcare insurance, which funds the universal healthcare system. This ensures access to a wide range of medical services for all residents.

Childcare Benefit Contributions

These contributions support the childcare benefit system, which subsidizes the cost of childcare for working parents.

These social security contributions are integral to maintaining the Netherlands' comprehensive social welfare system, ensuring support and protection for its citizens in various life situations.

Netherlands VAT Rates in Netherlands

VAT rates for Netherlands are reviewed annually, you can use the VAT Calculator to calculate VAT due in Netherlands or use the Reverse VAT Calculator to calculate the net cost of goods/services after deducting VAT.

Netherlands VAT Rates
VAT RateVAT Description
0%Zero Rated
9%Reduced Rate
21%Standard Rate

Historic Tax Tables supported for Netherlands

The following tax tables are supported by iCalculator™ NL as part of the suite of free tax tools we provide for Netherlands.