Income Tax 2025: What’s New?




As of January 1, 2025, significant amendments to the Dutch income tax system have been implemented, affecting both individuals and businesses. Below is an overview of the key changes:​



Adjustments to Income Tax Rates and Brackets

  • Introduction of Three Tax Brackets:
  • Bracket 1: Income up to €38,441 is taxed at 35.82%.​
  • Bracket 2: Income from €38,441 to €76,817 is taxed at 37.48%.​
  • Bracket 3: Income above €76,817 is taxed at 49.50%.​


Modifications to Tax Credits

  • General Tax Credit (Algemene Heffingskorting):
  • The maximum general tax credit has been reduced to €3,068. This credit decreases as income increases and is phased out entirely for incomes exceeding €76,817.​


  • Labour Tax Credit (Arbeidskorting):
  • The maximum labour tax credit has been increased to €5,599, benefiting employees with incomes up to €43,071.​


Preliminary Tax Assessment for 2025

Taxpayers who find that their preliminary assessment no longer aligns with their current financial situation can adjust it through the 'Mijn Belastingdienst' portal. The Dutch Tax and Customs Administration has streamlined this process, allowing modifications to be made in four simple steps.​


Updates on Box 3 – Taxation of Savings and Investments

The taxation method for assets in Box 3 has been revised to more closely reflect actual returns. For the 2025 preliminary assessment, the following notional return percentages are applied:​



Taxpayers are advised to stay informed about these changes, as they may impact their tax obligations.​

It is advisable for both individuals and businesses to thoroughly review these changes and seek professional advice if necessary to ensure compliance and optimize their tax positions under the new regulations.

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Key insights


In 2025, new income tax rules apply in the Netherlands. A three-tier tax system has been introduced, the general tax credit lowered, and the labour credit increased. The tax authority is now actively enforcing rules on false self-employment. Box 3 notional returns have changed, with an option to report actual returns. Adjusting your preliminary assessment is now easier online. Recent case law confirms that underreporting by 30% can trigger reassessment.