Types of taxes in the Netherlands
Various taxes apply to everyone in the Netherlands. One is liable for state taxes on income, wealth and assets as well as local government taxes for the provision of local services.
Income tax
Everyone in the Netherlands is taxed on their income, wealth and assets (inkomstenbelasting). The government imposes taxes based on the ability-to-pay principle.
The amount of tax you pay depends on your level of income. A percentage of your monthly salary is automatically deducted by the Tax and Customs Administration (Belastingdienst). At the end of each year, you need to file a tax return(belastingaangifte) where you are required to declare your income and assets. You are sent a final tax notice and in some cases will receive tax back.
Practical tips on how to file your taxes.
Find more information at the Tax and Customs Administration, the Belastingdienst.
Road tax
Everyone who owns a car or other motor vehicle pays road tax (wegenbelasting). The amount of tax varies according to the size of vehicle.Heavier vehicles are taxed more than lighter ones and gas- or diesel-powered vehicles are taxed more than petrol-driven vehicles.
Motor vehicle and/or road tax is collected by the Tax and Customs Administration. More information is available on their website. A program enabling you to estimate your road tax is available here (in Dutch).
Pollution levy and water board tax
Every year you are taxed for two kinds of water taxes; one for water purification which is a pollution levy (verontreinigingsheffing) and the second is the water board tax (waterschapsbelasting), used for the maintenance of dykes and control of water levels. The method of payment varies by municipality.
Municipal taxes and levies
Home owners pay a yearly real estate tax (onroerendezaakbelasting) based on the value of their property. Real estate includes any building, such as a residence or place of business. The municipality reassesses the value of all properties every two years. This valuation is called the WOZ-waarde (WOZ is short for Wet waardering Onroerende Zaken, or the Immovable Property Tax Act). Tax is based on this valuation. The method of payment varies by municipality.
Refuse tax
The refuse tax (afvalstoffenheffing - AFV) is used for the collection, processing and disposal of household rubbish. The method of payment for this tax varies by municipality.
Expatcenter's Partner: Tax
For a full list of the Expatcenter's partners or for more information on the Partnership Program, please click here.
Individual tax advisors
Corporate tax advisors
Further information
If you require further information, call the city information number 14 020 (Monday to Friday, 8:00 to 18:00).
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