As a self-employed person or entrepreneur, it is important to know what the tax brackets are. This is because they can change every year due to government choices or because everything becomes more expensive. Understanding how the tax brackets work will help you plan better and take advantage of the rules. We are happy to explain what the tax brackets and rates are for 2025 and what is different from 2024.
How do tax brackets work in 2025
In the Netherlands, the rule is: the more you earn, the more tax you pay. Your income is divided into pieces and a different tax rate applies to each piece. In this way, the government ensures that people with higher incomes pay more tax than those with lower incomes.
Types of income tax
The Inland Revenue divides your income into three boxes.
- Box 1: work and home - This is income from work, entrepreneurial profits, pension and benefits.
- Box 2: substantial interest - This is income from shares and profit distributions if you own 5% or more of a company.
- Box 3: savings and investments - By this we mean income from savings, investments and, for example, a second home.
Each box has its own rate and method of calculation. It depends on where your income comes from.
Tax box 1: work and home
Box 1 is therefore about income from work and home. Think salary, entrepreneurial profits, pension and benefits.
Calculate tax
For box 1 taxes, you first add up all your income. Then you deduct the things you are allowed to deduct, such as the self-employed deduction or the SME profit exemption. Once you have done that, you calculate how much tax you have to pay using the following brackets:
Pricing
| Disc | Income per year | Rate 2025 |
| Disc 1 | Up to €38,441 | 35,82% |
| Disc 2 | € 38.441 – € 76.817 | 37,48% |
| Disc 3 | From €76,817 | 49,50% |
Caution: Are you AOW-eligible? Then you pay less tax in the first bracket, namely 17.92%. For the latest information, visit the website of the Inland Revenue.
Tax box 2: substantial interest
Box 2 is for the entrepreneur who owns 5% or more of the shares in a PLC or SA. You pay tax on dividends and on profits when you sell the shares. The rates for 2025 are as follows:
| Disc | Income per year | Rate 2025 |
| Disc 1 | Up to €67,804 | 24,5% |
| Disc 2 | From €67,804 | 31% |
Tip: For director-major shareholders (DGAs), this could mean paying slightly less tax on dividends in 2025 than in 2024.
Tax box 3: savings and investments
Box 3 deals with income from things you own, such as savings, investments or a second home. Before 2025, these income and tax rules apply:
| Power | Efficiency | Rate |
| Up to €80,000 | 1,44% | 36% |
| € 80.000 – € 1.000.000 | 5,88% | 36% |
| From €1,000,000 onwards | 6,89% | 36% |
In 2025, you may have €57,684 per person without paying tax on it. For tax partners, the combined figure is €115,368. But note that these percentages may still change, as they only become official in 2026. From 2028, everyone will pay tax on actual income from savings and investments.
Conclusion
The tax brackets for 2025 change a bit. Especially in box 1, a third bracket will be added and in box 2, the rates will change. For entrepreneurs, it is very important to take this into account. So adjust your money matters in time, so you won't face any surprises in your tax return. In doubt? Then ask a financial adviser for help.
