Become a Dutch tax resident and the Netherlands taxes your worldwide income across three "boxes" — including a wealth tax on savings and investments that surprises most North Americans. Here are the 2026 numbers, and what the US and Canadian treaties actually protect.
Figures verified 8 July 2026Dutch income tax sorts everything you have into three boxes, each with its own rules. If you live in the Netherlands 183+ days a year — or it's simply where your life is — you're a tax resident and all three apply to your worldwide assets and income.
| Box | What goes in | 2026 rates |
|---|---|---|
| Box 1 | Employment, self-employment (incl. DAFT businesses), pensions, and your main home | 35.75% up to €38,883 · 37.56% to €78,426 · 49.50% above. Past AOW age (67), the first bracket falls to roughly 17.85% because you stop paying most national-insurance premiums. |
| Box 2 | Substantial shareholdings (5%+ of a company — including your own BV) | 24.5% on the first slice of dividend/gain, 31% above it |
| Box 3 | Savings, investments, second homes — worldwide, including US and Canadian brokerage accounts | A deemed return (1.28% on bank savings, 6.00% on investments, 2.70% on debts) taxed at 36%, above a tax-free base of €59,357 per person (€118,714 for fiscal partners) |
This single rule reshapes retirement planning for wealthy movers. Money inside recognised pension wrappers (401(k)s, IRAs, RRSPs) generally sits outside box 3 while it stays in the wrapper — but taxable brokerage accounts, cash above the threshold, and second homes are all in. Model this before you move, not after.
| United States | Canada | |
|---|---|---|
| Keep filing? | Yes — the US taxes citizens on worldwide income wherever they live. Foreign tax credits offset most Dutch-taxed income; box 3 credits are messier — get advice. | Generally no, once you cease Canadian tax residency — but the departure tax (deemed disposition of most assets on exit) can be the biggest single bill of the move. |
| Social security / pensions | US Social Security paid to a Netherlands resident is taxable only by the US (Art. 19(2) of the 1992 treaty). Private pensions and IRA distributions are generally taxed where you live — i.e., by the Netherlands, in box 1. | Under the Canada–NL treaty, pensions and social security paid across the border may be taxed in your country of residence — CPP/OAS received in the Netherlands lands in box 1. |
| Banking friction | FATCA — Dutch banks will ask for a W-9 and SSN, and some limit investment products for US persons. FBAR filing at $10,000 aggregate abroad. | Standard CRA exit forms (T1161/T1243 territory) on departure; little ongoing friction after non-residency. |
| Contributions | US–NL totalization agreement prevents double social-security contributions and helps combine credits. | Canada–NL social security agreement does the same for CPP/OAS. |
Employees recruited from abroad by a Dutch employer can receive 30% of salary tax-free for up to five years — one of Europe's best expat tax breaks. The 2026 conditions: minimum taxable salary €48,013, capped at €262,000 of salary. From 1 January 2027 the allowance drops to 27% with a higher salary floor (€52,521 in 2026 money); people granted the ruling before 2024 are grandfathered at 30%.
How the deemed-return tax hits brokerage accounts, what stays exempt, and the counter-evidence route.
Social Security, IRAs, 401(k)s, and Roths under the 1992 treaty — what's settled and what's grey.
Deemed disposition, what's exempt, and how to time your exit year.
US and Canadian tax obligations don't stop at the border. We'll match you with a cross-border tax adviser we've checked ourselves — credentials, licensing, and real client outcomes in the Netherlands.