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United Kingdom vs Netherlands
Tax Rate Comparison

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

🇬🇧 United Kingdom
vs
🇳🇱 Netherlands
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
0–45%
Thresholds remain frozen; fiscal drag continuing
No change
9.32–49.5%
Box 3 reform: actual returns taxed (not deemed)
No change

VAT / GST / Sales Tax

VAT / GST / Sales Tax
0–20%
Standard 20% maintained
No change
9–21%
Reduced 9% rate under review
No change

Corporate Tax Rate

Corporate Tax Rate
19–25%
25% main rate; possible future reform discussions
No change
19–25.8%
Stable; Pillar Two global minimum tax applies
No change

Capital Gains Tax

Capital Gains Tax
18–24%
Post-Oct 2024 rates in full effect
No change
~38%
Box 3 new regime: actual return basis
No change

Social Security & Payroll

Social Security / Payroll
~28.3%
15% employer NI; lower secondary threshold remains
No change
~28%
AOW/WW/WIA contributions ceiling raised
+0.4pp vs 2025
State, Regional & Local Taxes

🇬🇧 United KingdomDevolved, Council & Business Rates

Scotland sets its own income tax bands (six bands; top rate 48%). Wales has limited income tax-varying powers. Northern Ireland follows UK rates. All residents pay Council Tax to local authorities (typically £1,200–£4,000+/year). Business rates are set nationally but collected locally. SDLT applies to property purchases (LBTT in Scotland, LTT in Wales).

🇳🇱 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.

⚠️ 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.

United Kingdom vs Netherlands: Key Tax Differences (2026)

💰 Income Tax: 🇳🇱 Netherlands has a higher top income tax rate (0–45% vs 9.32–49.5%). 🇬🇧 United Kingdom is more favourable for high earners.

🛒 VAT/Sales Tax: Netherlands has a higher consumption tax (0–20% vs 9–21%).

🏢 Corporate Tax: 🇬🇧 United Kingdom offers a lower corporate rate (25% vs 25.8%), which can influence business location decisions.

📈 Capital Gains: 🇬🇧 United Kingdom taxes investment gains at a lower rate (24% vs 38%), benefiting investors.

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