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Loonheffingskorting explained in the Netherlands

Woonbase ·

Understand loonheffingskorting as a payroll tax discount, why it matters for net salary, and why multiple incomes can complicate it.

This page explains the payroll role of loonheffingskorting without turning into a personal tax instruction sheet.

Calculate your net salary

Use the calculator as the decision tool, then use the page sections below to compare the assumptions behind the estimate.

Calculate your net salaryJump to examples

What it means

Loonheffingskorting is a payroll discount mechanism that reduces withholding during the year when it is applied to a salary stream.

It changes what you receive net through payroll, but it is not a separate extra payment sitting outside the salary calculation.

How it affects net salary

When applied, payroll usually withholds less tax through the salary flow, which can raise the visible net amount.

With more than one income stream, the same credit benefit can effectively be counted too broadly, which is why later corrections are a real risk in general explanations.

Example scenarios

Two jobs and loonheffingskorting on both

Input situation

Someone receives salary from two employers and wonders why later corrections can appear.

What changes in the calculation

The calculator shows one income stream at a time, so the comparison point is how much of the tax-credit benefit is effectively used through payroll.

What to compare in the calculator

Compare one combined income with one smaller salary estimate and focus on credits, effective rate, and why withholding may differ.

Try this scenario in the calculator

EUR 3,500 gross per month

Input situation

A regular employee compares a EUR 3,500 gross monthly salary with the default payroll settings.

What changes in the calculation

The calculator annualises the monthly salary, applies wage tax, the general tax credit, labour credit, and the normal holiday-allowance logic.

What to compare in the calculator

Compare net per month, total tax, and the effect of switching holiday allowance on or off.

Try this scenario in the calculator

AOW, pension, and salary at the same time

Input situation

Someone combines continuing work income with pension-related income and wants a general payroll explanation.

What changes in the calculation

Multiple income streams can affect how payroll credits and withholding are applied, even though the calculator only models one salary stream at a time.

What to compare in the calculator

Compare an after-AOW salary estimate with a regular salary estimate and use the result as a simplified reference, not a full combined-income model.

Try this scenario in the calculator

Payslip shows higher wage tax than expected

Input situation

A payslip line for wage tax looks larger than the person expected from a simple gross-minus-net view.

What changes in the calculation

The payroll month reflects annualised withholding logic, credits, and sometimes irregular-income treatment, not just a flat percentage on the month's gross salary.

What to compare in the calculator

Compare payroll tax, credits, and annualised gross assumptions rather than looking only at gross and net.

Try this scenario in the calculator

Common mistakes

  • Treating loonheffingskorting as a universal yes-or-no answer across all incomes.
  • Forgetting that payroll and final-year tax settlement are not the same moment.
  • Assuming a higher monthly net automatically means the yearly tax picture is settled correctly.

FAQ

These questions stay focused on realistic payroll or salary situations, so you can compare them directly with the calculator.

What happens if I apply loonheffingskorting to more than one income?

Payroll can withhold too little tax across the combined incomes, which may lead to a later correction when the full-year tax position is settled. That is why official guidance treats multiple-income situations carefully.

Why can loonheffingskorting work differently when I also receive AOW?

Because payroll credits and withholding can be spread across salary, AOW, and possibly pension streams in different ways. The calculator shows the salary-side estimate, but multiple income streams can change the final payroll picture.

Why is my net salary lower than I expected from the gross figure?

A gross figure still has payroll tax, credits, holiday-allowance structure, and sometimes irregular-income treatment behind it. The calculator helps show which of those drivers is doing most of the work in the estimate.

Why is this page a general explanation instead of personal advice?

Because salary outcomes can depend on employer payroll settings, pension, benefits, reimbursements, and other details that are outside a simple public calculator. The page is meant as a structured explanation and comparison tool.

Calculate your net salary

Use the calculator as the decision tool, then use the page sections below to compare the assumptions behind the estimate.

Calculate your net salaryJump to examples

Related pages

Net salary calculator

Go back to the main calculator and test the same assumptions directly.

Loonheffingskorting and multiple jobs

See why multiple salaries can create payroll mismatches when loonheffingskorting is treated too broadly across jobs.

Wage tax explained

See how wage tax fits into the Dutch net salary estimate and why credits matter just as much as the tax bands in many salary scenarios.

AOW and net salary

See how reaching AOW age changes the salary estimate and why payroll can still differ when AOW, pension, and salary streams meet.

Gross to net at 4000

Open a concrete salary level as the next step.

Official sources

Use the official pages below to verify the public rules behind the estimate and the example explanations.

Belastingdienst: loonheffingskorting and multiple incomes

Official guidance

Official payroll guidance explaining why applying loonheffingskorting to more than one income stream can lead to under-withholding and later corrections.

Open source

Belastingdienst: apply, change, or stop loonheffingskorting

Official guidance

Official page describing when loonheffingskorting may be applied through payroll and how to change the setting with an employer or benefits payer.

Open source

Belastingdienst: 2026 general tax credit table

Official table

Official 2026 thresholds and phase-out table for the general tax credit used in salary estimates.

Open source

Belastingdienst: 2026 labour tax credit table

Official table

Official 2026 labour-credit table used to explain why net salary changes with employment income levels.

Open source
Important: This page gives a general explanation and example scenarios. It is not legal, tax, or financial advice. Rules and amounts may change. Check official sources and your payslip or employer details.
Specific payroll setups, pension arrangements, or employer payroll methods can lead to different results.