Highest income brackets taxed most heavily

The average gross income of Dutch households was more than 56 thousand euro in 2008. Nearly 23 thousand euro, i.e. 40 percent had to be paid in contributions to income and health care insurances and income tax. The wealthiest households contributed much more than the lower income brackets.

Premiums paid by highest incomes amount to 45 percent

In 2008, the 20 percent of wealthiest households accounted for more than half of the total amount paid in premiums and income tax. Their gross incomes averaged nearly 126 thousand euro. Premiums and taxes comprised approximately 45 percent of the gross incomes of these households.

Average tax rate and social contributions by income level (average income), 2008

Over-65s pay lowest rates

Low income earners pay less tax and lower premiums than higher income earners. A relatively high proportion of lower income earners live on social benefits and old age pensions. On average, income insurance premiums are much lower for households living on social security. Pensioners, for example, were in fact exempt from paying income insurance premiums. On average, their total expenses made up only 22 percent of their gross income in 2008.

Average premiums and taxes by age main breadwinner (with average income), 2008

Wim Bos