Withholding is the amount of income tax your employer pays on your behalf from your paycheck. The changes to the tax law could affect your withholding.
How to Check Your Withholding
Use the IRS Withholding Estimator to estimate your income tax and compare it with your current withholding. You’ll need your most recent pay stubs and income tax return.
The results from the calculator can help you figure out if you need to fill out a new Form W-4 for your employer. Or, the results may point out that you need to make an estimated tax payment to the IRS before the end of the year.
If you adjusted your withholding part way through 2021, the IRS recommends that you check your withholding amounts again. Do so in early 2022, before filing your federal tax return, to ensure the right amount is being withheld.
Find Your Adjusted Gross Income (AGI)
If you're changing your tax withholding, you'll need to know your adjusted gross income (AGI). You can find your AGI number on your prior year’s tax return. If you don’t have a copy of last year’s tax return, you can get it from a tax return transcript.
The Netherlands taxes its residents on their worldwide income; non-residents are subject to tax only on income derived from specific sources in the Netherlands (mainly income from employment, director’s fees, business income, and income from Dutch immovable property).
Personal income tax rates
In the Netherlands, worldwide income is divided into three different types of taxable income, and each income type is taxed separately under its own schedule, referred to as a 'box'. Each box has its own tax rate(s). An individual's taxable income is based on the aggregate income in these three boxes.
Box 1 refers to taxable income from work and home ownership, and includes the following:
- Employment income.
- Home ownership of a principal residence (deemed income).
- Periodic receipts and payments.
- Benefits relating to income provisions.
Box 2 refers to taxable income from a substantial interest, and box 3 applies to taxable income from savings and investment (see the Income determination section for more information).
2022 rates for box 1 income
| Taxable income (EUR) | Tax on column 1 (EUR) | Tax on excess (%) | |
| Over (column 1) | Not over | ||
| 0 | 35,472* | 9.42 | |
| 35,472 | 69,398 | 3,341 | 37.07 |
| 69,398 | 15,917 | 49.50 |
* In the first bracket of box 1, national insurance tax is levied at a rate of 27.65%.
Box 2 income is taxed at a flat rate of 26.9%.
Please note that there has been a proposal to adjust the tax rate as of 2024, by introducing two new brackets: a basic rate of 26% for the first 67.000 euros in income per person and a rate of 29.5% for the remainder.
Box 3 income is taxed at a flat rate of 31%.
Local taxes on income
There are no local taxes on income in the Netherlands.
TurboTax / Tax Calculators & Tools / W-4 Withholding Calculator
Use our tax withholding calculator to see how to adjust your W-4 for a bigger tax refund or more take-home pay.
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Frequently asked questions
One of the biggest changes on the redesigned W-4 form is the elimination of personal withholding allowances. Instead, the form uses a 5-step process and new Federal Income Tax Withholding Methods to determine actual withholdings. In the past, the value of withholding
allowances was also tied to personal and dependent exemptions, but those exemptions were eliminated under The Tax Cuts and Jobs Act signed IRS Form W-4 is completed and submitted to your employer, so they know how much tax to withhold from your pay. Your W-4 can either increase or decrease your take home pay. If you want a bigger refund or smaller balance due at tax time, you’ll have more money
withheld and see less take home pay in your paycheck. If you want a bigger paycheck, you’ll have less withheld and have a smaller refund or larger balance due at tax time.
in 2017.
- Use the W-4 calculator to adjust your withholdings and determine how to fill out your W-4.
- Once you’re ready to update your W-4, reach out to your employer or download and print a blank
W-4 form. - Submit it to your employer as soon as possible. It could take up to a few weeks for adjustments to be reflected
on your paycheck.
When you use the redesigned Form W-4, your withholding is based on your expected filing status and standard deduction for the year. The new redesigned Form W-4 makes it easier for you to figure out your withholding, especially if you have income from multiple jobs, itemized deductions, the child tax credit, and other tax benefits.
The W-4 calculator can help you adjust your withholdings to determine if you’ll get a refund or a balance due come tax time. Once you’re happy with your projected outcome, the W-4 calculator will show how to fill out your W-4. Depending on your employer, updates to your W-4 could take a few weeks to be reflected on
your paycheck.
It’s important to remember that getting a tax refund means you paid too much federal income to the IRS during the year, so you are owed money. If you are seeking a bigger refund come tax time, the simplest way is to update your W-4 to have more money withheld from your paycheck. The W-4 withholding calculator can help you determine how to adjust your withholdings. The less your take-home pay, the bigger your refund will be. However, it’s possible to maximize your paycheck amount and still get a tax refund. Learn how
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