
The rates in box 1 of income tax and payroll tax in 2024 are as follows.
rate bracket | annual income | tax and national insurance contributions, younger than state pension age | ditto, state pension age and older |
---|---|---|---|
1a | €0 to €38,098 | 36,97% | 19,07% |
1b | €38,098 to €75,518 | 36,97% | 36,97% |
2 | €75,518 or more | 49,5% | 49,5% |
For people born before January 1, 1946, a higher limit of € 40,021 applies in bracket 1a.
The rate in the first bracket contains a premium component. Until the state pension age, this consists of 17.9% AOW, 0.1% Anw and 9.65% Wlz. When you reach the state pension age, the state pension premium expires. In 2024, the state pension age will be 67 years.
Tax credits
The general tax credit amounts to a maximum of € 3,362 and is reduced to nil above an income in box 1 of € 24,812. The reduction amounts to 6.63% of the excess income. For people who have reached state pension age, the general tax credit amounts to a maximum of € 1,735 and the reduction is 3.42%. From an income of € 75,518, the general tax credit is zero.
The employment tax credit amounts to a maximum of €5,532 for people younger than state pension age. For people who have reached state pension age, the employment tax credit amounts to a maximum of € 2,854. The employment tax credit is reduced to nil from an employment income of €39,957. The reduction amounts to 6.51% of the labor income above € 39,957. For state pension recipients, the reduction is 3.358%. The employment tax credit is zero for an income of € 124,934.
The income-related combination discount has no basic amount. The discount starts with a labor income of € 6,073 and increases by 11.45% of the additional income to a maximum of € 2,950 with an income of € 31,837 or higher.
The young disabled discount is €898.
The elderly discount applies to AOW recipients. The elderly discount is € 2,010 up to an income of € 44,770. Above that income, the elderly discount decreases by 15% of the excess to zero for an income of € 58,170. The single elderly discount is €524.
Source: Ministry of Finance | publication | 01-01-2024