Netherlands 2025 Belastingplan: Wage Tax and Credit Updates

Netherlands Belastingplan 2025

The Dutch government’s 2025 tax package (Belastingplan) introduces adjustments to income tax brackets, labour credits, and environmental levies. Payroll teams and employees should anticipate how these changes influence net salaries and benefit eligibility.

Key Income Tax Changes

• Box 1 first bracket: Slight increase to accommodate inflation, reducing tax for incomes up to ~€75,000.
• Labour credit (arbeidskorting): Enhanced for middle incomes, tapering faster for high earners.
• General tax credit: Extended phase-out, benefitting dual earners and part-time workers.

Payroll Action List

1. Update wage tax tables for January 2025 runs.
2. Communicate changes to employees, especially those near bracket thresholds.
3. Review 30% ruling cases to ensure compliance with updated salary norms.
4. Plan for increased environmental levies affecting company vehicles and energy allowances.

Employee Planning Tips

Check preliminary assessments (voorlopige aanslag) for 2025 to match new credits. Couples should coordinate income splits to optimise credit usage and minimise residual tax bills come 2026.

Note: Monitor Prinsjesdag announcements for any supplemental legislation affecting pensions, Box 2, or Box 3 before final payroll adjustments.