As is known, the same rate applies to income and wage tax. This rate is very important for both individuals and employers. The tax authorities provide the following explanation about the valid rate for the tax year 2020.
Below you will find an overview of the change for 2020.
Change in income and wage tax rate 2020
|Tax-free amount||Afl. 28.861|
There are 4 income brackets>
- the income margin- the tax amount
The tax table is as follows:
- Before you apply the table for calculating the tax amount, you must first deduct the tax-free amount.
- The amount of tax is rounded down to whole florins.
|Overview rates and tax brackets|
With a table income of more than the amount indicated in column I but not more than the amount stated in column II
|IS the tax for the amount indicated in column III, plus the amount calculated by taking the percentage indicated in column IV of the part of the table income that exceeds the amount indicated in column I.|
Taxable income 2020 Afl. 76,950
SubractTax-free amount - / - Afl. 28,861 - / -
Table income Afl. 48,089 see income bracket no. 2
Subtract the amount in column I (category 2). Afl. 34,930
Balance Afl. 13,159
Tax according to column III (income bracket 2) Afl. 4,890.20
Tax at 13,159 - 25% according to column IV Afl. 3,289.75.
Total amount Afl. 8,179.95
Income or wage tax to be paid is Afl. 8,179 (per year)
You may use an Excel file to automatically calculate the tax amount. The file’s name is ‘Berekening IB-LB 2020 (klanten)’.