The income tax on gross incomes in the first bracket (up to 68,507) will go from 37.35 to 37.1 percent. The rate will not change for incomes above that, which will remain at 49.5 percent. At the same time, the employed person’s income tax credit will go up. Someone who earns 30,000 euros gross has to pay 318 euros less tax than last year. Workers who earn 40,000 will pay 428 euros less tax next year.
The general tax credit is also increasing. As a result, people with an income in the first bracket have to pay less tax. For a gross income of 40,000 euros, a working person has to pay 87 euros less tax. The tax benefit increases with smaller incomes. With an income of 20,000 euros you pay 126 euros less tax.
The state pension age remains the same. But there is also a discount on income tax for the elderly: the elderly discount. A state pensioner with an income of EUR 35,000 pays EUR 81 less tax. Someone with an AOW benefit who earns more than 49,000 euros will not benefit from the discount. Even older people who only receive the AOW do not receive the discount.
The tax-free allowance will increase from EUR 30,846 to EUR 50,000. No tax is levied on that amount of savings and other assets, such as shares. The capital is calculated per person, so together with a tax partner the tax-free capital doubles to 100,000.
For people who have more savings in the bank, the wealth tax will increase slightly. Between 50,000 and 100,000 euros you pay about 0.6 percent tax. Over 100,000 to a million, the saver has to pay 1.4 percent. And 1.8 percent tax is levied on more than a million savings.
Self-employed person’s allowance
The self-employed deduction will be reduced in order to narrow the tax differences between employees and self-employed persons. Self-employed persons receive 360 euros less discount on their income tax. The deduction is then 6,670 euros, which will be further reduced to 3,240 euros until the year 2036.
The transfer tax for people up to the age of 35 will go from 2 to 0 percent. This should make it easier for starters to enter the owner-occupied housing market. Until March, the rule applies to all houses, after that only to houses up to four tons. For investors and other buyers who are not going to live in the house themselves, the transfer tax will increase, they go from 2 to 8 percent. People over 35 who do live in the house they buy themselves continue to pay 2 percent transfer tax.
Due to the benefits affair, the cabinet is working on improving the benefits system. According to State Secretary van Huffelen, taxpayers will have ‘more rights’, personal situations will be examined and the system will be based more on the ‘human scale’. For example, if someone has not paid part of the bill, it is no longer the case that the entire childcare allowance of one year is reclaimed. And the tax authorities can only stop surcharges or impose fines if someone has been given sufficient opportunity to provide their own information.
The minimum wage for people over 21 years old will increase by 4.80 euros per month, compared to July. The minimum wage is 1,684.80 euros from 1 January. The minimum wage will be adjusted again in July.
A flight tax was already introduced in 2007, but after a lot of opposition from airports, among others, the tax was abolished in 2008. Now, twelve years later, the tax on flying is returning. From next year, every passenger departing from a Dutch airport will pay € 7.85 in tax.
The tax on one cubic meter of gas will increase by 2.8 cents to 52.2 cents compared to 2020. In 2019 that was still more than ten cents less. According to Milieucentraal, a household uses an average of 1,269 cubic meters of gas, so they pay 662 euros in tax on it. In the coming years, the tax will increase further, to encourage homeowners to save gas by, for example, better insulation. The rising tax is partly offset by an increase in the fixed energy tax discount of EUR 31.
Free movement of people and goods to the United Kingdom is a thing of the past. Passport controls have been reintroduced at the border. From the new year, the transport of food, animals and plants will also be checked extra. In addition, the United Kingdom is leaving the European student exchange program, Erasmus. As a result, European students who want to study at a British university for a few months cannot just go there. Johnson announced plans to set up a new exchange program called Turing.