United States vs Netherlands taxes (2026): Box 1, Box 3 and the 30% ruling

United States vs Netherlands tax rates at a glance

Tax	🇺🇸 United States	🇳🇱 Netherlands
Income tax	Personal income tax: 10% - 37% Social Security: 6.2% Medicare: 1.45% Additional Medicare: 0.9% State income tax: Varies	Bracket 1: 35.75% Bracket 2: 37.56% Bracket 3: 49.50% National insurance in bracket 1: Included 30% ruling: If eligible
Corporate tax	C corporation tax: 21% CAMT: 15% Pass-through entities: Different State tax: Varies	Profit up to EUR 200,000: 19% Profit above EUR 200,000: 25.8% Participation exemption: Often available Domestic dividend WHT: 15%
Capital gains tax	Long-term capital gains: 0% - 20% Short-term capital gains: 10% - 37% Qualified dividends: 0% - 20% NIIT: 3.8%	Box 2 lower rate: 24.5% Box 2 higher rate: 31% Box 2 threshold: EUR 68,843 Portfolio / Box 3: 36% on deemed return Business gains: Box 1 rates
Dividend tax	Qualified dividends: 0% - 20% Ordinary dividends: 10% - 37% NIIT: 3.8% State tax: Varies	Domestic dividend WHT: 15% Box 2 lower rate: 24.5% Box 2 higher rate: 31% Portfolio route: Often Box 3
Wealth tax	Net wealth tax: 0% Property tax: Varies Estate tax: Up to 40% Gift tax: Up to 40%	Box 3 tax rate: 36% Box 3 tax-free allowance: About EUR 59,357 Classic all-assets wealth tax: Not used Primary residence: Generally outside Box 3
Inheritance / estate tax	Federal inheritance tax: 0% Federal estate tax: Up to 40% Federal gift tax: Up to 40% Basic exclusion: $15,000,000	Partners and children: 10% / 20% Grandchildren: 18% / 36% Other beneficiaries: 30% / 40% Higher-rate threshold: About EUR 158,669 Partner exemption: EUR 828,035
VAT / GST / sales tax	Sales tax: Varies by state	VAT: 21%
2026 Box 1 rates	Federal ordinary 10% to 37%, plus state tax	35.75% / 37.56% / 49.50%
Investment wealth	Tax on actual dividends, interest and gains	Box 3: 36% on deemed return above about EUR 59,357

Who wins on each tax

Personal income taxUnited States

The U.S. federal top ordinary rate is 37% before state tax; Dutch Box 1 reaches 49.50% in 2026.

Corporate taxUnited States

U.S. C corporations pay 21% federally plus possible state tax; the Netherlands charges 19% on the first EUR 200,000 and 25.8% above that.

Capital gains taxUnited States

The U.S. taxes actual long-term gains at 0% to 20% federally; Dutch portfolio gains are often absorbed into Box 3 deemed-return tax or Box 2 for substantial shareholdings.

Wealth / Box 3United States

The U.S. has no federal net wealth tax; Box 3 taxes a deemed return at 36% above the exemption.

VAT / sales taxUnited States

The U.S. has no federal VAT; Dutch standard VAT is 21%.

The verdict

Dutch work income is boxed and steep. For 2026, Box 1 for people under state pension age is 35.75% up to EUR 38,883, 37.56% to EUR 78,426, and 49.50% above that, with national insurance inside the first band. The U.S. federal ordinary scale is 10% to 37% before state tax, so ordinary salary usually costs more in the Netherlands.

Investment wealth is where the systems stop resembling each other. The Netherlands taxes a deemed return on many savings and investments in Box 3 at 36% on that deemed income, with a 2026 exemption of about EUR 59,357. The United States taxes actual dividends, interest and gains, with long-term federal rates of 0% to 20% and 3.8% NIIT for many high earners. The 30% ruling can soften Dutch employment tax for qualifying incoming staff, for a limited period only.

Choose the Netherlands for an EU holding, a qualifying expat assignment or a Dutch operating company. Choose the United States for actual-gain investment taxation and a lower federal top ordinary rate. U.S. citizens remain taxable worldwide after a Dutch move.

How to read this comparison

The Dutch system is easier to misunderstand than to summarise. It does not tax “income” in one pile. It sorts life into boxes, then taxes some boxes on real income and others on a deemed return. The United States taxes actual income and actual gains, then lets states pile on.

Box 1 is work and the primary residence. For 2026 the combined brackets under state pension age are 35.75% up to EUR 38,883, 37.56% from there to EUR 78,426, and 49.50% above that. National insurance is inside the first band. That already sits above the 37% U.S. federal ordinary top before any U.S. state tax. Payroll withholding collects Dutch wage tax during the year in the same practical way U.S. withholding does.

The 30% ruling is the inbound-employee exception, not the resident baseline. Qualifying incoming employees can treat a portion of salary as tax-free for a limited period if the conditions are met. It can make a Dutch assignment viable. It does not rewrite Box 1 for everyone, it expires, and it does not switch off U.S. worldwide taxation for a citizen or green-card holder.

Box 3 is the investment-wealth design. Instead of waiting for a sale the way U.S. capital-gains tax does, the Netherlands generally looks at the asset mix and taxes a deemed return above an exemption of about EUR 59,357 per person in 2026, at 36% on that deemed income. Bank deposits and other investments can have different assumed returns. A year of low actual performance can still produce Dutch tax. Substantial shareholdings of 5% or more usually sit in Box 2 instead of Box 3. The United States, by contrast, generally waits for dividends, interest and realisations, with long-term federal rates of 0% to 20%.

Companies pay 19% on the first EUR 200,000 of taxable profit and 25.8% above that. That is close to, and then above, 21% U.S. federal C-corporation tax before state tax. Dividend withholding is often 15%. Standard VAT is 21%. Inheritance tax runs from 10% to 40%. There is no classic all-assets French-style IFI, but Box 3 is still a wealth-side tax.

A U.S. person who moves for a Dutch job should model Box 1 with or without the ruling, Box 3 on the portfolio they are bringing, Dutch inheritance tax, and continuing IRS worldwide income and estate exposure. The 30% ruling is a relief. It is not a new tax home in the U.S. sense.

Which one fits you

🇺🇸 Choose United States if you're a…

Investors who want tax on actual gains rather than deemed returns
High earners without a 30% ruling
C corporations comparing 21% federal with 25.8% Dutch

🇳🇱 Choose Netherlands if you're a…

Qualifying incoming employees who can use the 30% ruling
EU holding companies with Dutch substance
Founders whose market and staff are in the Netherlands

Frequently asked questions

Is the Netherlands higher tax than the United States?

For ordinary salary, usually yes because Box 1 reaches 49.50%. The 30% ruling can reduce the Dutch employment result for a limited time. Box 3 can also tax investment wealth when actual returns are low.

What is Dutch Box 3 tax?

Box 3 generally taxes a deemed return on many savings and investments at 36% on that deemed income, above an exemption of about EUR 59,357 in 2026, rather than taxing each actual gain as U.S. CGT would.

Does the 30% ruling make the Netherlands low-tax?

No. It can treat a portion of qualifying incoming salary as tax-free for a limited period. It is not a 0% personal system and it does not cancel U.S. citizenship tax.