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Households spend smaller share of income on taxes, especially pensioners

Households spend smaller share of income on taxes, especially pensioners

Dutch households are paying a smaller percentage of their gross income toward taxes and social security contributions compared to 2011. Pensioners currently face the lowest tax burden, while single-earner households continue to pay significantly more than dual-income households with similar earnings.

According to new data from Statistics Netherlands, households spent an average of 12.3 percent of their gross income on income taxes and social security contributions in 2024, a notable decrease from 15.4 percent in 2011. The report highlights that pensioners experience the lowest tax burden, averaging just 5.5 percent, largely because they are exempt from AOW contributions and often fall into lower income brackets. In contrast, those with the highest incomes pay the most, with their tax burden reaching 24.9 percent.

The analysis also reveals significant differences based on household composition. Couples with two incomes generally pay less tax than single-earner households, single-parent families, or single-person households. For instance, a two-earner household earning between 100,000 and 110,000 euros pays 11.9 percent in taxes, while a single earner with the same income pays 19.4 percent. Experts suggest this structure functions as an incentive for people to participate more in the workforce.

Based on reporting by nu. Translated and condensed by LocalHeadlines.

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