The moment you have reached the state pension age and/or are retired, there will be some changes to your tax situation. From now on, your income will be taxed through other tax brackets and rates. Besides, you might want to know how early retirement affects your tax situation? On this page, we will explain what is going to change tax-wise when reaching the retirement age.
Tax brackets and rates retirement
The applicable tax rate in your situation depends on when you have reached state pension age. Also, it makes a difference in which year you were born. When you reach the state retirement age, different tax rates and other tax brackets apply.
On this page, we will explain four different situations that show the tax rates and tax brackets in 2021. Here, you can calculate how much tax will be deducted from your retirement.
SITUATION 1: You have reached the state pension age in 2021
| You will reach the state pension age in: | PERCENTAGE 1st bracket (up to € 35,130) |
|---|---|
| January | 19.20% |
| February | 20.69% |
| March | 22.18% |
| April | 23.68% |
| May | 25.17% |
| June | 26.66% |
| July | 28.15% |
| August | 29.64% |
| September | 31.13% |
| Oktober | 32.63% |
| November | 34.12% |
| December | 35,61% |
| Tax bracket | taxable income | percentage |
|---|---|---|
| 2 | from €35,130 to €68,508 | 37.10% |
| 3 | from € 68,508 | 49.50% |
SITUATION 2: You were born before January 1, 1946
| tax bracket | taxable income | percentage |
|---|---|---|
| 1 | up to € 35,942 | 19.20% |
| 2 | from € 35,942 to € 68,508 | 37.10% |
| 3 | from €68,508 | 49.50% |
SITUATION 3: You were born on or after January 1, 1964
| tax bracket | taxable income | PERCENTAGE |
|---|---|---|
| 1 | up to € 35,130 | 19.20% |
| 2 | from € 35,130 to € 68,508 | 37.1o% |
| 3 | from €68,508 | 49.50% |
SITUATION 4: Early retirement
Are you getting retired early? This means that you will retire without reaching state pension age yet. In this case, the “general” tax rates apply. These rates are a bit higher. Besides, you are not yet entitled to the elderly person’s tax credit.
On the other hand, the general tax credit is higher if you have not yet reached the state pension age. The effect of this on your situation depends on your income.
Curious? We are happy to look into it.
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Do you have any questions about retirement? Or do you have other tax-related questions? The TaxSavers is happy to help you. Fill in our contact formor give us a call on +31 (0)20 – 2170120.
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