Box 1 vs Box 2 vs Box 3 (2026): Verified Dutch Tax Box Comparison
Official-source comparison of the Dutch three-box system: what belongs in each box, 2026 rates, and classification boundaries for expats.
How the Dutch Three-Box System Works
Dutch income taxation separates taxable bases into three categories (“boxes”). Each box has its own rate structure and rules.
- Box 1: income from work and home.
- Box 2: income from substantial interest (typically 5%+ shareholding).
- Box 3: income from savings and investments via deemed-return method.
Interactive Decision Tree
Use the quick tool below to map common income/assets to likely box classification before deeper analysis.
Dutch Tax Box Decision Tree
Let's determine how your income or asset is taxed. What is the main source?
Box 1 (Work and Home)
Box 1 generally covers employment income, business profit from personal entrepreneurship, periodic benefits, and home-related elements under Dutch rules.
2026 rates for taxpayers below AOW age:
- Up to €38,883: 35.75%
- €38,883 to €78,426: 37.56%
- Above €78,426: 49.50%
Related: Dutch Tax Brackets Guide.
Box 2 (Substantial Interest)
Box 2 applies where you (alone or with your fiscal partner) have a substantial interest, typically at least 5% of shares/rights in a company.
2026 Box 2 rates:
- Up to €67,804: 24.5%
- Above €67,804: 31%
Common Box 2 items include dividends and disposal gains on substantial-interest holdings.
Box 3 (Savings and Investments)
Box 3 taxes a deemed return on net wealth (not a traditional realized-capital-gains model).
2026 key parameters:
- Heffingsvrij vermogen (single): €59,357
- Heffingsvrij vermogen (fiscal partners): €118,714
- Tax rate on deemed return: 36%
Related: Box 3 Explained and Crypto Tax Guide.
Side-by-Side 2026 Comparison
| Box | Main scope | 2026 rate logic |
|---|---|---|
| Box 1 | Work and home income | Progressive: 35.75% / 37.56% / 49.50% |
| Box 2 | Substantial interest income | 24.5% then 31% |
| Box 3 | Savings/investment wealth | 36% on deemed return base |
Boundary and Classification Checks
- Identify legal nature first (employment, substantial-interest payout, wealth holding).
- Check fiscal-partner impact for thresholds where relevant.
- Avoid using one box’s rules to infer another box’s outcome.
- For mixed situations (e.g., director-shareholder with private assets), review each item separately.