Understanding Taxes in Amsterdam
Dutch employees in Amsterdam pay income tax under the Box 1 system, which taxes employment income. The 36.93% first bracket includes both income tax and national insurance contributions (AOW, ANW, WLZ). The Netherlands has a general tax credit (heffingskorting) that reduces tax owed, and an employment tax credit (arbeidskorting) for workers. Amsterdam is the economic capital with the highest average salaries in the Netherlands, particularly in tech, finance, and consulting sectors.