What are the three boxes of Dutch income tax?

Box 1: income from work and primary residence (wages, pension, freelance, imputed rent). Box 2: income from substantial interest (5%+ ownership in a company). Box 3: income from savings and investments (wealth tax).

How does Box 3 wealth tax work?

Box 3 taxes a deemed return on net assets (assets minus debts). The deemed return rates for 2024: bank savings 1.03%, investments and other assets 6.04%. Effective rate = 36% applied to the deemed return. Exempt threshold: 57,000 EUR.

What is Box 2 substantial interest?

If you own 5% or more of a company, dividends and capital gains are Box 2 income. Rate: 24.5% on first 67,000 EUR, 33% above. After 2024 changes, a 24%/33% split applies.

What is the Box 3 legal challenge?

The Dutch Supreme Court ruled in 2021 that Box 3 violates taxpayer rights when actual returns are lower than deemed returns. NHHR recovery still ongoing, with transitional legislation while a new income-based system is developed.

How is Box 1 tax calculated for freelancers?

Freelancers (ZZP) pay Box 1 tax on profit, minus the zelfstandigenaftrek (self-employed deduction of 3,750 EUR in 2024, being phased down). Profit also subject to Zvw healthcare contribution (5.32% up to 71,628 EUR).

Netherlands Box 1 Box 2 Box 3 Income Tax Calculator 2024

Calculate Dutch income tax across three boxes. Box 1 (work/home): 36.97% up to 75,518 EUR, 49.5% above. Box 2 (substantial interest): 24.5% to 67,000 EUR, 33% above. Box 3 (wealth): 36% effective on deemed return.

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