Calculating Dutch income tax for 2026: employment, business, and the two combined
Most people know their tax bracket and assume that tells them what an extra euro costs. It rarely does. What you actually pay on that euro is driven not only by the rate, but by tax credits that taper off as income rises, by the SME profit exemption, and — if you run a business — by the healthcare act contribution. Here is how those parts interact in 2026, with worked examples and a calculator for your own figures.
The brackets are only half the story
Box 1 has three brackets in 2026. Below state pension age you pay 35.75% up to EUR 38,883, 37.56% up to EUR 78,426, and 49.50% above that. For anyone at state pension age all year, the first bracket is 17.85%, because it no longer includes the AOW premium. The thresholds are the same for everyone, with one exception: those born before 1946 have a second-bracket threshold of EUR 41,123.
Box 1 brackets and rates, 2026
| Taxable income | Below state pension age | At state pension age |
|---|---|---|
| Up to EUR 38,883 | 35.75% | 17.85% |
| EUR 38,883 to EUR 78,426 | 37.56% | 37.56% |
| Above EUR 78,426 | 49.50% | 49.50% |
In the top bracket, deductions count at no more than 37.56%. That applies to the entrepreneur deductions, the SME profit exemption and personal deductions.
Tax credits decide what you really pay
Two credits do most of the work. The general tax credit is at most EUR 3,115 and tapers from EUR 29,736 at 6.398%, reaching exactly zero at EUR 78,426. The employment tax credit rises in three steps to EUR 5,685 at an employment income of EUR 45,592, then tapers at 6.510% to zero at EUR 132,920. One detail matters: only salary from current employment and business profit count as employment income. Pensions, the state pension and unemployment or disability benefits do not, so they earn no employment tax credit.
Employment tax credit 2026, below state pension age
| Employment income | Credit |
|---|---|
| Up to EUR 11,965 | 8.324% of employment income |
| EUR 11,965 to EUR 25,845 | EUR 996 + 31.009% of the excess |
| EUR 25,845 to EUR 45,592 | EUR 5,300 + 1.950% of the excess |
| EUR 45,592 to EUR 132,920 | EUR 5,685 less 6.510% of the excess |
| From EUR 132,920 | EUR 0 |
For those at state pension age all year, the same bands apply at half these percentages and amounts.
Why your marginal rate exceeds your bracket
Take a freelancer with EUR 60,000 of profit who meets the hours criterion. Their taxable income sits in the second bracket, so you would expect 37.56%. In reality, an extra EUR 100 of profit costs them EUR 49.12. Four things happen at once: the SME profit exemption lowers the base by 12.7%, but on the remainder the bracket rate, the taper of the general tax credit, the taper of the employment tax credit and the healthcare contribution all keep running.
What EUR 100 of extra profit really costs at EUR 60,000 of profit
| Component | Effect |
|---|---|
| Bracket rate 37.56%, after the 12.7% SME profit exemption | 32.79% |
| Taper of the general tax credit (6.398%) | 5.59% |
| Taper of the employment tax credit (6.510%) | 6.51% |
| Healthcare contribution (4.85%) | 4.23% |
| Marginal rate | 49.12% |
This is exactly why a deduction or a pension contribution is worth far more to a freelancer in this income range than the bracket rate suggests.
Business only: what comes off your profit
As an income-tax entrepreneur the entrepreneur deductions come off first. The self-employed deduction is EUR 1,200 in 2026 — it was EUR 2,470 in 2025 and drops to EUR 900 in 2027. With the starter's deduction you add EUR 2,123. The SME profit exemption of 12.7% then applies to what remains. What is left is your taxable profit, and on that you pay not only income tax but also the 4.85% healthcare contribution yourself, up to a maximum contribution income of EUR 79,409 — so at most EUR 3,851 a year.
The healthcare contribution is what freelancers forget most often
On salary your employer pays the 6.10% levy, which never touches your net pay. On your profit you pay 4.85% yourself, through a separate assessment that only arrives after the year ends. At EUR 60,000 of profit that is almost EUR 2,500 you need to have set aside, on top of the income tax.
Combining employment and business
This is where most surprises arise. Your profit stacks on top of your salary, so it lands in a higher bracket than it would if you only ran a business. On top of that, the hours criterion is rarely achievable alongside a job: besides the 1,225 hours, the majority rule then also applies, requiring more than half of your total working time to go to the business. Without the hours criterion the self-employed deduction disappears entirely. The SME profit exemption still applies, since it has no hours requirement. There is one silver lining: the maximum contribution income for the healthcare levy covers all your income together, so if your salary already fills it, your profit carries no further contribution.
Pensions, state pension and benefits
At state pension age the first bracket is 17.85% instead of 35.75%, and you qualify for the elderly person's credit of up to EUR 2,067, which tapers from EUR 46,002 at 15%. Single pensioners also qualify for the single pensioner's credit of EUR 540. What is often overlooked: pensions and benefits do not count towards the employment tax credit, so the effective burden on that income works out differently from what people are used to from their working years.
Four situations calculated
The figures below were produced with the same engine as the calculator further down, for people without a tax partner, without home ownership and without box 3 assets.
Worked examples for tax year 2026
| Employment EUR 45,000 | Business EUR 60,000 | Salary 40,000 + profit 20,000 | Pension EUR 30,000 | |
|---|---|---|---|---|
| Taxable income | EUR 45,000 | EUR 51,332 | EUR 57,460 | EUR 30,000 |
| Tax before credits | EUR 16,198 | EUR 18,577 | EUR 20,878 | EUR 5,355 |
| Tax credits | EUR 7,812 | EUR 6,480 | EUR 6,088 | EUR 4,155 |
| Income tax | EUR 8,386 | EUR 12,096 | EUR 14,790 | EUR 1,200 |
| Healthcare contribution | - | EUR 2,490 | EUR 847 | EUR 1,455 |
| Total levy | EUR 8,386 | EUR 14,586 | EUR 15,637 | EUR 2,655 |
| Effective rate | 18.6% | 24.3% | 26.1% | 8.9% |
The entrepreneur in column 2 meets the hours criterion; the combination in column 3 does not, which costs the self-employed deduction. Column 4 is a single person at state pension age born after 1945; there the healthcare contribution on the pension is withheld at source. These figures are taken from the calculator's own engine when the page is built, so table and calculator cannot drift apart.
Effective rate by situation at comparable gross income
% of gross incomeCombining salary and profit comes out higher than running a business alone at the same gross figure, because the self-employed deduction falls away and the profit stacks into a higher bracket.
Run your own numbers
In the calculator below you pick your situation, enter your amounts and see which credits apply. It estimates the wage tax already withheld and shows what you can expect to pay or get back; if you know the actual figure, enter it. For entrepreneurs it works out what to set aside each month for the assessment.
Income tax calculator 2026
Pick your situation and enter your figures; the result updates as you type. Every field has a question mark explaining what to enter and where to find it. New to the Dutch system? The explanations also cover the terms you will meet on your assessment.
Result
Enter an amount to see the result.
On salary, benefits and pensions the healthcare contribution is already paid or withheld by the employer or paying body. You only pay it yourself on your business profit, through a separate assessment.
An indication, not an assessment
This tool uses the 2026 rules and amounts as known at the time of publication, and deliberately leaves several things out — box 2 and box 3, allowances, home ownership and personal circumstances that can change your outcome. The result is therefore an indication to think and budget with, not a calculation you should base a decision on without discussing it. Only the assessment from the Belastingdienst is binding. Have your situation worked through before drawing conclusions from it.
What the calculator deliberately leaves out
The calculation stays within box 1. Box 2 and box 3 are excluded, even though they do count towards the taper of the general tax credit — so with assets or a substantial interest your actual credit is lower. The field “other personal deductions” is meant for the items that legally belong there: spousal maintenance paid, specific medical expenses and deductible gifts, each after the threshold that applies to them. Enter the amount left after that threshold, not your total spending. Three things expressly do not belong there. Benefits are not a deduction but a contribution towards costs; they do not lower your taxable income. Annuity premiums are an income-provision expense and fall outside the rate adjustment that does apply to personal deductions — at a high income they are therefore worth more than this field would calculate. And home ownership is not a single figure: the imputed rental value and the deductible interest offset each other. For those three: leave them out of this field and have them calculated separately. And because the 2027 rates are only published on Budget Day, the calculator covers 2026 only.
Want to know what your own situation actually produces, including the items the calculator leaves out? Dutch Tax House is happy to work it through with you and draw up a profit forecast, so you know where you stand during the year rather than discovering it at filing time. Get in touch.
Sources
Tax information as it stood on 6 September 2026.
This article is intended as general information and doesn't replace personal advice. Tax rules and figures change regularly — get in touch for advice tailored to your situation.