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Germany vs Netherlands
Tax Rate Comparison

Enter your income below for a personal tax estimate, then scroll down for full rate breakdowns.

πŸ‡©πŸ‡ͺ Germany
vs
πŸ‡³πŸ‡± Netherlands
Tax Year:

πŸ’° Personal Income Tax Calculator

Enter your income to see your estimated annual tax liability in each country β€” side by side.

Enter your annual income above to see your personal tax comparison β†’
Individual Income Tax (Top Marginal Rate)
Top Income Tax Rate
14–45%
Basic allowance ~€12,336; bracket creep relief
No change
9.32–49.5%
Box 3 reform: actual returns taxed (not deemed)
No change
VAT / GST / Sales Tax
VAT / GST / Sales Tax
7–19%
Standard 19% unchanged
No change
9–21%
Reduced 9% rate under review
No change
Corporate Tax Rate
Corporate Tax Rate
~29%
Coalition discussions on lowering to 25% ongoing
β–Ό -0.5pp vs 2025
19–25.8%
Stable; Pillar Two global minimum tax applies
No change
Capital Gains Tax
Capital Gains Tax
25%
Investment income reform proposals under review
No change
~38%
Box 3 new regime: actual return basis
No change
Social Security & Payroll
Social Security / Payroll
~41.5%
Health insurance rising; pension base up
β–² +0.5pp vs 2025
~28%
AOW/WW/WIA contributions ceiling raised
β–² +0.4pp vs 2025
State, Regional & Local Taxes

πŸ‡©πŸ‡ͺ Germany β€” Trade Tax (Gewerbesteuer) & Church Tax

Germany's 16 BundeslΓ€nder apply federal income tax rates uniformly β€” no state income tax variation. Municipalities levy Gewerbesteuer (trade tax) on business profits at ~7–17% effective. Church tax (Kirchensteuer) of 8–9% of income tax applies to registered members. The solidarity surcharge (Soli) now only applies to the top ~10% of earners.

πŸ‡³πŸ‡± Netherlands β€” Municipal & Water Board Taxes

The Netherlands is a unitary state β€” income tax is set nationally. Municipalities levy property taxes (OZB) and water boards (waterschappen) charge annual water management levies. The Box 3 system is under ongoing reform following Supreme Court rulings. New Box 3 reform taxes actual returns from 2027.

⚠️ Disclaimer: Rates shown are standard top/headline rates for informational purposes. Actual tax liability depends on income level, residency, deductions, and tax treaties. 2025–2026 data reflects announced or enacted rates and may be subject to change. Not financial or legal advice.

Germany vs Netherlands: Key Tax Differences (2026)

πŸ’° Income Tax: πŸ‡³πŸ‡± Netherlands has a higher top income tax rate (14–45% vs 9.32–49.5%). πŸ‡©πŸ‡ͺ Germany is more favourable for high earners.

πŸ›’ VAT/Sales Tax: Netherlands has a higher consumption tax (7–19% vs 9–21%).

🏒 Corporate Tax: πŸ‡³πŸ‡± Netherlands offers a lower corporate rate (25.8% vs 29%), which can influence business location decisions.

πŸ“ˆ Capital Gains: πŸ‡©πŸ‡ͺ Germany taxes investment gains at a lower rate (25% vs 38%), benefiting investors.

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