Gross to Net Salary in Holland – What Changes in 2026?

By Thomas Keller · Updated July 2026 · 5 min read

Gross to Net Salary in Holland , What Changes in 2026?

Understanding how your gross salary translates into net pay is essential for anyone working or hiring in the Netherlands. In 2026, the Dutch government will implement several tax adjustments that affect take-home pay. These changes include revised income tax brackets, higher tax credits, and new employer contributions for social security.

This article explains the main differences for 2026 in plain English, so you can plan your budget or payroll accordingly.

Dutch Income Tax Brackets for Box 1 Income in 2026

In the Netherlands, most employment income falls under box 1, which covers income from work and home ownership. For 2026, the government has announced two key changes. First, the threshold for the first tax bracket will rise, which means more income is taxed at a lower rate.

Second, the rate for the first bracket will decrease slightly from 36.97% in 2025 to 36.00% in 2026. The second bracket, which applies to income above the threshold, remains at 49.50% for 2026. For example, if you earn €40,000 gross per year, the first €38,000 (estimated threshold) will be taxed at 36.00%, and the remaining €2,000 at 49.50%.

This shift directly increases your net pay. Intercompany Solutions, with its expertise in Dutch payroll and employment structures, advises foreign companies on how these bracket changes affect employee take-home pay.

General Tax Credit and Employment Tax Credit in 2026

Tax credits reduce the amount of income tax you pay. The general tax credit (algemene heffingskorting) will increase from around €3,070 in 2025 to roughly €3,250 in 2026 for low and middle incomes. The employment tax credit (arbeidskorting), which rewards people who work, will also rise, particularly for incomes between €20,000 and €40,000.

This means that a full-time employee earning €35,000 gross per year will see their annual tax bill drop by about €400. For employers, these credits are automatically applied through the payroll system, so you do not need to take extra steps. Intercompany Solutions helps companies set up payroll correctly, ensuring they apply the right credits for each employee.

New Employer Social Security Contribution in 2026

A major change for 2026 is the introduction of a new employer contribution for social security, called the ‘public scheme contribution for the self-employed’ (Zelfstandigenaftrek voor werkgevers, abbreviated as ZVW for employees). Starting in 2026, employers will pay an extra 5.5% levy on salaries up to a certain maximum, roughly €71,000 per year.

This replaces part of the current employee contribution for the Zorgverzekeringswet (Zvw) or healthcare insurance tax. In practice, this means that your gross salary will remain the same, but your employer’s total payroll costs will increase by about 5.5% on your salary. Your net pay might rise slightly because your own Zvw contribution (currently 6.55%) will drop to around 1.0%.

For example, with a gross salary of €50,000, your employer pays an extra €2,750 in 2026, but you keep about €2,000 more per year in net pay. Intercompany Solutions, based at the World Trade Center Rotterdam, is a one-stop-shop for Dutch payroll services, including handling these new employer contributions.

Example Calculation: Gross to Net for a Typical Employee

To make the changes concrete, here is a simplified example for a single person earning €40,000 gross per year in 2026, compared to 2025. We assume no special deductions or benefits.

As the table shows, the net monthly pay increases by about €102 in this example. Actual numbers depend on your personal situation. the provider can help you model your own gross-to-net calculation as part of their payroll and accounting services for foreign entrepreneurs.

What the 30% Ruling and Other Benefits Mean for 2026

The 30% ruling, which allows certain expats to receive 30% of their salary tax-free, will continue in 2026 but with adjustments. From 2027, the government plans to phase out the 30% ruling partially, but for 2026 it remains at the full 30% exemption. This means that if you qualify, your gross salary is reduced by 30% before tax, which boosts net pay significantly.

For an expat earning €80,000 gross, the 30% ruling reduces taxable salary to €56,000, leading to net monthly income of around €5,500 in 2026. Employers also benefit from lower payroll taxes. the provider supports business immigration and can advise on eligibility for the 30% ruling, though they are not a law firm themselves. They can connect you with tax specialists.

How to Get Your Payroll Ready for 2026

To prepare for the 2026 changes, employers should update their payroll software or work with a professional payroll provider. The new employer contribution for social security requires adjustments to salary calculations. Ensure your HR team knows about the reduced employee Zvw contribution and the higher tax credits.

If you are a foreign entrepreneur setting up a Dutch BV, you need a proper payroll structure from the start. the provider offers full Dutch BV formation, including payroll setup and VAT registration. They have helped thousands of entrepreneurs from over 50 countries since 2017. Their team handles the notarial deed, Chamber of Commerce (KvK) registration, and tax registrations remotely.

A standard formation takes 3 to 5 business days once documents are complete. While the provider is not a bank, they assist with opening a Dutch business bank account and refer you to partner banks.

Common Mistakes to Avoid on Gross-to-Net Salary in 2026

Many people assume their net salary will stay the same year to year. This is not true due to tax law changes. Another mistake is forgetting the new employer contribution, which increases total labour costs in 2026.

For freelancers and DGA’s (directeur-grootaandeelhouder), the shift in tax credits and brackets affects their profit distribution. A third mistake is ignoring the fact that the 30% ruling may be reduced from 2027; plan your multi-year salary strategy now. Finally, do not rely on old payroll software; update it to handle the 5.5% employer levy. the provider, though not a law firm, provides comprehensive payroll services and accounting support to avoid these pitfalls.

Their English-speaking team gives you one dedicated contact for all payroll queries.