Recent changes to the Netherlands’ tax brackets, as well as changes to the contribution rates applicable to social security programs entered into effect on 1 January 2026.
Ministerial Regulation of 2 December 2025 determined the contribution percentages that apply to the premium levy for the General Old Age Pensions Act (AOW), the General Surviving Dependents Act (Anw), the General Unemployment Fund (AWf), the Government Implementation Fund (UFO), the Disability Fund (Aof), and the surcharge on the Aof premium for the childcare allowance.
In 2026, the upper threshold of the income tax brackets have changed. Netherlands will continue to have three tax brackets, but the upper limit of the first bracket will increase from EUR 38,441 to EUR 38,883, and will be subject to a combined tax and contribution rate of 35.70%. The second bracket applies to income from EUR 38,411 to EUR79,137 and is subject to a tax rate of 37.56%. The top bracket starts at EUR 79,137 and remains subject to an unchanged rate of 49.5%.
These changes are summarised in the charts below.
For more information on these changes, please consult your regular BDO contact or the author of this article.
Robin Schalekamp
BDO in Netherlands
Ministerial Regulation of 2 December 2025 determined the contribution percentages that apply to the premium levy for the General Old Age Pensions Act (AOW), the General Surviving Dependents Act (Anw), the General Unemployment Fund (AWf), the Government Implementation Fund (UFO), the Disability Fund (Aof), and the surcharge on the Aof premium for the childcare allowance.
In 2026, the upper threshold of the income tax brackets have changed. Netherlands will continue to have three tax brackets, but the upper limit of the first bracket will increase from EUR 38,441 to EUR 38,883, and will be subject to a combined tax and contribution rate of 35.70%. The second bracket applies to income from EUR 38,411 to EUR79,137 and is subject to a tax rate of 37.56%. The top bracket starts at EUR 79,137 and remains subject to an unchanged rate of 49.5%.
These changes are summarised in the charts below.
For more information on these changes, please consult your regular BDO contact or the author of this article.
Robin Schalekamp
BDO in Netherlands