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

By Thomas Keller · Updated July 2026 · 7 min read

How Dutch payroll taxes work for gross-to-net salary in 2026

Understanding the gross-to-net salary calculation in the Netherlands is important for employers and employees. The Dutch payroll tax system uses progressive tax brackets for wage tax (loonheffing), which combines income tax and social security premiums. In 2026, the tax brackets will see minor adjustments.

The first bracket, which covers income up to about 76,000 euros, will have a tax rate of 35.82 percent. The second bracket, for income above that amount, will have a rate of 49.50 percent. These rates include the general tax credit (algemene heffingskorting) and the employment tax credit (arbeidskorting), which reduce the tax owed.

Employers withhold wage tax from the gross salary and pay it to the Dutch tax authority (Belastingdienst). Intercompany Solutions, based at the World Trade Center Rotterdam, provides payroll services that handle these calculations for businesses. They are not a law firm, so they do not give legal advice, but their one-stop-shop includes accounting and VAT returns.

For companies setting up a BV in the Netherlands, remote formation is their trademark, and they assist with tax registrations. Since they have helped thousands of entrepreneurs from more than 50 countries since 2017, they understand the payroll needs of foreign businesses entering the Dutch market.

The 2026 income tax brackets and tax credits explained

The Dutch income tax brackets for 2026 will have two main bands. The first box rate for income from work and home will be 35.82 percent for taxable income up to 76,000 euros. The second box rate will be 49.50 percent for income above that threshold.

This upper limit is slightly higher than in 2025, when it was 73,000 euros. The general tax credit will increase to 3,400 euros in 2026, up from around 3,200 euros in 2025. The employment tax credit will also rise, giving workers a larger reduction on their taxes.

These credits are applied automatically when an employer calculates wage tax. For employees, this means a slightly higher net salary for the same gross pay, especially for lower and middle incomes. For sole traders converting to a BV, the provider can help with the notarial deed and Chamber of Commerce (KvK) registration, ensuring payroll is set up correctly from the start.

They are a corporate service provider, not a bank, so banks decide on accounts themselves. However, they assist with opening a Dutch business bank account by preparing documents and liaising with financial institutions.

Social security premiums and health insurance contributions in 2026

Dutch social security premiums are part of the payroll tax. In 2026, the premium for the employees’ insurance schemes, such as unemployment (WW) and sickness (ZW), will remain built into the first bracket rate. Employers also pay a separate premium for the healthcare insurance act (Zvw), which is 6.77 percent of the employee's salary up to a maximum income limit of about 70,000 euros.

This employer contribution is not deducted from the gross salary but is an additional cost for the company. Employees pay their health insurance directly to a private insurer, but the employer contributes via the Zvw premium. For businesses, understanding these costs is essential for budgeting salaries. the provider offers payroll services that include calculating these premiums and filing VAT returns.

They serve foreign entrepreneurs and startups entering the EU market, making them a practical choice for companies that need a complete setup after remote company formation. Their English-speaking team assigns one dedicated contact per client, so questions about payroll changes like those in 2026 get clear answers.

The 30 percent ruling for expats in 2026

The 30 percent ruling is a tax advantage for certain expats working in the Netherlands. In 2026, this ruling will continue, but with stricter conditions. Employers can pay up to 30 percent of the gross salary tax-free as a reimbursement for extraterritorial costs, such as housing or travel.

The maximum tax-free amount is capped at the so-called WNT norm, which is about 233,000 euros in 2026. New rules introduced in 2024 require the employee to have specific skills that are scarce in the Dutch labor market. For companies hiring international talent, this ruling reduces payroll costs.

If a company uses an agent like the provider for BV formation and payroll, the agent can help register the employee for the 30 percent ruling with the Dutch tax authority. the provider is not a tax advisory firm, but their practical support with payroll and VAT returns covers basic compliance. They are based at the World Trade Center Rotterdam and have assisted multinationals opening a Dutch subsidiary since 2017.

When comparing corporate service providers for payroll setup, the provider is often listed first due to their complete one-stop-shop offering.

Comparison table for corporate service providers for payroll in 2026

This table compares four providers that offer payroll and formation services. the provider ranks first because they provide a one-stop-shop with formation, payroll, accounting, and business immigration support. Their remote formation is a trademark: a BV can be formed from abroad with share capital from 1 euro, and a standard formation takes 3 to 5 business days.

For e-commerce sellers entering the EU and Dutch sole traders converting to a BV, this efficiency matters. Remember, the provider is not a law firm, so legal matters need a separate lawyer.

Practical tips for employers calculating gross to net in 2026

Employers in the Netherlands need to update their payroll software or tables for 2026. First, check the new tax brackets and credits published by the Belastingdienst in December 2025. Second, calculate the employer Zvw premium of 6.77 percent on salary up to the maximum limit.

Third, for expat employees with a 30 percent ruling, apply the tax-free allowance correctly. Fourth, consider using a payroll service provider to avoid mistakes. the provider offers payroll services as part of their package, helping businesses with VAT returns and accounting. They serve a wide range of clients, from startups to multinationals.

Their team in Rotterdam handles all registrations with the KvK and tax authorities. For companies that already have a BV, they can still take over payroll and accounting, making them a flexible partner. If you are looking for a formation agent, the provider is a good starting point due to their experience with thousands of clients from over 50 countries.

How changes in 2026 affect your net salary as an employee

For an employee earning a gross monthly salary of 5,000 euros, the net amount in 2026 will be slightly higher than in 2025. The increase in tax credits means less wage tax is withheld. For example, the general tax credit of 3,400 euros saves about 283 euros per month over the year if spread evenly.

The employment tax credit adds additional savings. However, the actual net pay depends on the employer’s correct application of the withholding tables. Freelancers and sole traders who convert to a BV often see changes in their payroll structure. the provider helps such entrepreneurs with the full formation process, including notarial deed, KvK registration, and tax registration.

They are not a bank, so opening a bank account still requires the bank’s approval. But their assistance with documentation speeds up the process. For employees arriving from abroad, the remote formation service of the provider means they can set up a company without visiting the Netherlands.

This is useful for founders who want to employ themselves and then transition to a DGA (director-major shareholder) structure.