Tax Rates for Residents in 2025

### Income Tax

From 1 January 2025, the government plans to adjust rates and tax brackets for income tax. The new tax measures ensure that people with middle incomes will have higher net earnings.

Below are the income tax percentages you pay if you are below retirement age.

| Year | Tax Bracket | Income | Tax | | ---- | ----------- | ----------------------- | ------ | | 2024 | Bracket 1 | Up to €38,098 | 36.97% | | 2024 | Bracket 2 | From €38,098 to €75,518 | 36.97% | | 2024 | Bracket 3 | From €75,518 | 49.50% | | 2025 | Bracket 1 | Up to €38,441 | 35.82% | | 2025 | Bracket 2 | From €38,441 to €76,817 | 37.48% | | 2025 | Bracket 3 | From €76,817 | 49.5% |

### VAT on Leisure, Culture, Books and Sports

The government proposes changing the VAT rate for culture, arts, books, and sports from the reduced rate (9%) to the standard rate (21%).

### VAT on Accommodation

The government proposes changing the VAT rate on accommodation from the reduced rate (9%) to the standard rate (21%). This applies, for example, to staying in a hotel, vacation home, or campervan. The government proposes that the reduced VAT rate continues to apply to camping sites.

### Gambling Tax

The government proposes increasing the gambling tax. From 1 January 2025, the gambling tax rises from 30.5% to 34.2%. And in 2026 to 37.8%.

### End of Net-Metering Scheme for Solar Panels (Netting) from 2027

The government proposes ending the net-metering scheme from 2027. Users will receive compensation from the energy supplier for all electricity fed back. The compensation amount is yet unknown, but the law will require it to be reasonable.

### Reduction of Natural Gas Tax

The government proposes reducing the tax on natural gas from 1 January 2025. In 2025, the tax will be 2.8 cents per m3 lower. The reduction applies to consumption up to 170,000 m3.

### Reduction of Transfer Tax on Secondary Housing to 8% in 2026

The government proposes reducing the transfer tax on housing from 10.4% to 8%. This rate applies only when buying a property you do not intend to live in yourself. Planning to live there yourself? Then the starter exemption and the 2% rate continue to apply.