For most employees in the Netherlands, income tax starts on the payslip: the employer withholds loonheffing during the year. The annual income-tax return then reconciles what was withheld with your full situation, including other income, deductions, assets and tax credits.
Start with your payslip
Your employer normally withholds wage tax and national-insurance contributions through payroll. That withholding is an advance payment toward your final income-tax position. Keep your payslips and annual statement (jaaropgaaf); the annual return uses much of the same information.
Loonheffingskorting: use it carefully
Loonheffingskorting reduces payroll withholding. If you have several employers or an employer plus a benefit/pension at the same time, do not ask all of them to apply it. Belastingdienst warns that double application commonly causes a tax bill later because each payer only sees its own income.
Do you have to file an annual return?
- If Belastingdienst sends you an aangiftebrief, you must file.
- If you receive no letter, you may still have to file if the calculation shows tax above the annual assessment threshold.
- You can also file voluntarily if the return shows a meaningful refund.
- If you moved into or out of the Netherlands during the tax year, expect extra residence/foreign-income questions.
For the 2025 return, Belastingdienst currently says a person without an invitation should file if the completed return shows at least €58 payable; if at least €19 is refundable, submitting can also be worthwhile. These thresholds are year-specific and should not be copied forward automatically.
2026 Box 1 rates
| Taxable Box 1 income | 2026 rate if you have not reached AOW age |
|---|---|
| Up to €38,883 | 35.75% |
| €38,883–€78,426 | 37.56% |
| Above €78,426 | 49.50% |
These are marginal rates. They are not the percentage of your entire salary that disappears in tax, and tax credits can materially change the final amount. AOW-age taxpayers have different first-bracket treatment.
What newcomers often miss
- Having payroll tax withheld does not guarantee your final return is exactly zero.
- Multiple simultaneous incomes can cause under-withholding.
- Foreign salary, investments, bank accounts or property can affect the Dutch return depending on residence and treaty rules.
- A fiscal partner can change how certain shared income and deductions are allocated.
- Toeslagen are separate from income tax and use their own rules and income estimates.
Where to do it
Most individuals file through Mijn Belastingdienst using DigiD. Follow the deadline in your invitation; Belastingdienst says the common deadline is 1 May, but your own letter controls.