I'm considering a job in the Netherlands. The annual gross income is 70,000. Checking online it says it falls on a tax bracket of 51.75%. I deducted that to the gross then divided by 12 months, I get around 2,800. But when I check online tax calculators, it says I should get round 3,700 net. Can anybody please tell me what's going on? Cheers!
Like in the USA, the UK, and many other countries, you don't pay that percentage on all your money, but only for the money that falls into that tax bracket. Most of your income will fall into lower tax brackets (and I expect that the first few thousand euros a year will be totally tax free, but you'd have to find a table for that yourself).
Marginal tax rates mean that you pay different amounts of tax on different levels of income. In the US you pay 10% on the first $9975, and even that is after the standard deduction of $12k. So you pay no tax on the first $12k on income, then 10% on the next $9975 and so on. It doesn't matter how much money you make, you get $12k free and you only pay 10% on the next $9975.
Do consider social security insurances, though. You'll likely end up paying around 20% in health insurance, retirement insurance, unemployment insurance and so on. I don't know the exact figures for the netherlands, but I would be surprised if it's vastly different from 20% total.
Dutch Income tax has different brackets and also has deductions.
We have in Box 1 the employment income, pension income, profit income, any and all income generated by work, former work, company or activities that have exceeded the hobby status. Also in Box 1 you have the deductions. Deductions such as the mortgage deduction, study costs, illness, alimony (both costs and income are reported here), and the other deductions we have. The tax rate is the progressive tax rate that ends at 52%. This is the most common box to have your taxable income in. Source
Dutch tax rates The Dutch government is set to reduce the number of income tax brackets down to two in 2021. In 2019, however, three bands will operate as follows:
Up to €20,384: 36.65% €20,384–€68,507: 38.1% €68,507+: 51.75% From 2021: Up to €68,507: 38.1% €68,507+: 51.75%
In addition, Dutch social security tax is paid at a rate of 27.65% in 2018 (or 9.75% for pension-age residents). To get an idea about your individual income tax in the Netherlands, you can use a Dutch income tax calculator.Source