The amount of income tax due

The amount of Dutch income tax due is the aggregate amount calculated over the income in Box 1, Box 2 and Box 3. Each Box has its own tax rate.

For the income in Box 1, the rates are progressive with a top rate of 49.50% for 2023.

For Box 2 and Box 3 income, the rate is (flat) 26.9% and 32% respectively (rates 2023). See further the section Tax rates for individuals.

The amount of income tax due, can under certain conditions be reduced with:

• a tax credit for non-compensated losses from substantial shareholding;
• tax exemption or tax credit for Dutch tax residents in relation to foreign source income;
• the aggregate amount of personal levy rebates (in Dutch: “heffingskorting”).

The aforementioned tax credits and exemptions must be claimed in the annual income tax return. Under certain conditions a preliminary (monthly) refund during the calendar year can be applied for.

The Dutch income tax due or refund will become payable/ refundable once a preliminary or final assessment for the year has been imposed. See further the section Tax assessments, tax payments and tax refunds.