How Dutch income tax is calculated?

The tax for wage and income is calculated through four progressive tax brackets . The higher your income, the higher your tax bracket. There is a wage tax that is withheld from your salary. This is levied on the basis of your estimated annual salary, which is then calculated back to a monthly amount.

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Do the Dutch pay high taxes?

The Netherlands is a socially conscious country, and higher earners can expect substantial taxation on their salary (up to 49.5%) . However, your personal situation, type of work, residency status, and other assets and earnings (particularly from abroad) will affect your position considerably.

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What is the 30 rule in the Netherlands?

The 30% reimbursement ruling (also known as the 30% facility) is a tax advantage for highly skilled migrants moving to the Netherlands for a specific employment role. When the necessary conditions are met, the employer can grant a tax-free allowance equivalent to 30% of the gross salary subject to Dutch payroll tax .

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