Taxes and allowances

If you live and work in the Netherlands, you will have to deal with taxes and you might also receive allowances.

Taxes in the Netherlands

There are several different types of tax in the Netherlands. The tax you have to pay depends on your situation. If you work for a Dutch employer, your employer will deduct tax from your wages. This tax is called payroll tax. Your payslip shows your gross wages, your net wages and the amount of tax that has been deducted.

You might also have to pay tax to the municipality where you live, for example to pay for waste collection or sewers. The amount you pay varies from one municipality to the next. Visit your municipality's website for more information.

Belastingdienst

Belastingdienst is an organisation that is run by the government. It ensures that people and businesses pay tax. If you have a right to allowances, such as housing benefit or healthcare benefit, you get them from Belastingdienst. You can contact Belastingdienst if you have any questions about tax or allowances. You can also visit one of the Work in NL Information Points.

Frequently asked questions:

  • Do I have to pay tax on my income? Yes. You have to pay tax on your income if you work and earn money in the Netherlands. If you are employed, your employer normally deducts tax from your wages already. This tax is called payroll tax. Your payslip shows how much tax has been withheld. If you are self-employed in the Netherlands, you also have to pay tax. This rule applies to everyone who works for themselves. For example, you have to pay tax on your income (what you earn), your revenue (everything you sell) and your profit (income minus costs).
  • What will happens if I do not pay the tax I owe on time? If you do not pay tax on time, you can be fined. In that case you will also have to pay additional costs, such as interest. If you are having trouble paying, you can sometimes contact Belastingdienst and ask for a postponement or agree a payment arrangement.
  • How can I get help with tax matters? If you have any questions about tax or allowances, you can call Belastingdienst’s Tax Information Line on 0800 - 0543. You can call this number free of charge. For help with completing your tax return, you can also visit the Belastingdienst website or a tax office near where you live. You can also visit one of the Work in NL Information Points.