Last updated: Feb, 2025 by Ernst (disclaimer)

Below is a schematic overview and calculation of the Dutch Personal Income Tax

Dutch Personal Income Tax
Box 1 (Income from work and owner-occupied home)
Sub-section Taxable item +/-
Income from self-proprietorship (eenmanszaak) Taxable income from self-proprietorship (eenmanszaak) +/+
Additional charge for private usage of company car +/+
Entrepreneur’s deductions
• Private business ownership allowance (zelfstandigenaftrek) -/-
• R&D deduction (S&O-aftrek) -/-
• Working partner's abatement (meewerkaftrek) -/-
• Business discontinuation relief (stakingsaftrek) -/-
• Profit exemption for small and medium-sized enterprises (SME) (mkb-winstvrijstelling) -/-
Is taxable profit from self-proprietorship =
Tax already paid via provisional assessment -/-
Income from employment Gross wage +/+
Additional charge for private usage of company car +/+
Payroll tax already deducted -/-
Income from other activities Taxable income from other activities +/+
Exemption on making capital available -/-
Income from periodical payments Taxable periodical payments and benefits in kind
Income from owner-occupied home Taxable notional income from owner-occupied home +/+
Deductible costs on account from owner-occupied home -/-
Deduction on account of no or little owner-occupied home debt -/-
Deductible expenses Expenses for income provisions -/-
Expenses for maintenance provisions (alimony) -/-
Expenses for deductible healthcare costs -/-
Expenses for deductible gifts -/-
Loss relief Loss relief in box 1 -/-
Is taxable income in box 1 =
Personal income tax + social security contributions -/-
Is taxation over box 1 =
Box 2 (Income from substantial interest)
Regular income (i.e. dividend income) +/+
Deductible expenses -/-
Divided tax already withheld -/-
Tax already paid via provisional assessment -/-
Capital gain benefits +/+
Remainder of deductible expenses -/-
Loss relief box 2 -/-
Is taxable income box 2 =
Personal income tax -/-
Is taxation box 2 =
box 3 (Savings and investments)
Notional return on bank deposits +/+
Notional return on other assets +/+
Exemption of usufruct -/-
Exemption of forest and natural areas -/-
Exemption of works of art and science -/-
Exemption of green investments -/-
Exemption of net annuities and net pensions -/-
Dividend tax already withheld -/-
Exempt capital -/-
Notional deduction on debt -/-
Exempt debt +/+
Remainder of deductible expenses -/-
Is taxable income box 3 =
Personal income tax -/-
Is taxation box 3 =
Personal income tax
Is sum of tax payable over box 1, box 2 and box 3 including social security contributions =
General tax credit -/-
Tax credit on income from labour -/-
(Single) elderly tax credit -/-
Is total income tax and social security contributions payable =