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Netherlands vs Estonia
Tax Rate Comparison

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

🇳🇱 Netherlands
vs
🇪🇪 Estonia
Tax Year:

💰 Personal Income Tax Calculator

Enter your income to see your estimated annual tax liability in each country — side by side.

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Individual Income Tax (Top Marginal Rate)

Top Income Tax Rate
9.32–49.5%
Box 3 reform: actual returns taxed (not deemed)
No change
22%
22% national + local supplement; defence spending driving rate increases
No change

VAT / GST / Sales Tax

VAT / GST / Sales Tax
9–21%
Reduced 9% rate under review
No change
9–24%
24% standard; defence-driven fiscal pressure
No change

Corporate Tax Rate

Corporate Tax Rate
19–25.8%
Stable; Pillar Two global minimum tax applies
No change
22%
22% on distributed profits; retained earnings still 0%
No change

Capital Gains Tax

Capital Gains Tax
~38%
Box 3 new regime: actual return basis
No change
22%
22% as income
No change

Social Security & Payroll

Social Security / Payroll
~28%
AOW/WW/WIA contributions ceiling raised
+0.4pp vs 2025
~33%
33% social tax maintained; III pillar voluntary pension growing
No change
State, Regional & Local Taxes

🇳🇱 NetherlandsMunicipal & Water Board Taxes

The Netherlands is a unitary state — 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.

🇪🇪 EstoniaLocal Income Tax Supplement

Estonia's 79 local governments levy a local income tax supplement of 11.4% of taxable income (2024), collected alongside the national 20% income tax. Together these form the effective total income tax. Estonia's unique fully distributed profit taxation system means companies pay no corporate income tax on retained earnings — only on distributed profits (dividends). This has driven significant foreign investment. Land tax (maamaks) is levied at 0.1%–2.5% of assessed land value by municipalities.

⚠️ 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.

Netherlands vs Estonia: Key Tax Differences (2026)

💰 Income Tax: 🇳🇱 Netherlands has a higher top income tax rate (9.32–49.5% vs 22%). 🇪🇪 Estonia is more favourable for high earners.

🛒 VAT/Sales Tax: Estonia has a higher consumption tax (9–21% vs 9–24%).

🏢 Corporate Tax: 🇪🇪 Estonia offers a lower corporate rate (22% vs 25.8%), which can influence business location decisions.

📈 Capital Gains: 🇪🇪 Estonia taxes investment gains at a lower rate (22% vs 38%), benefiting investors.

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