Box 1 is the first of three boxes in the Dutch personal income tax system. It taxes income from work and from the owner-occupied home, including salary, business profits, freelance income, alimony, pensions, and the notional rental value (eigenwoningforfait) of a main residence, reduced by deductible mortgage interest.
For 2026 the Box 1 schedule continues to apply progressive brackets. The first two lower brackets carry a combined rate that includes wage tax and national insurance premiums. The third, top bracket contains only income tax and applies to income above the threshold set each year in the Miljoenennota.
Because Box 1 includes almost all labour income, it is the primary box for employees. Employer payroll calculates a provisional wage tax through loonheffing, which is then reconciled in the annual income tax return against deductions, tax credits, and partner allocations.