Understand · Payroll glossary
What is personal income tax (PIT)?
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Personal income tax (PIT) is the annual tax on individuals’ income, calculated by FPS Finance from your tax return. In 2026: 25% to 50% (tax scale for 2026 income (tax year 2027)). In Dutch: personenbelasting.
Definition of personal income tax (PIT)
It covers a whole year’s income (salaries, pensions, benefits, self-employed income, property income and some investment income), after deduction of professional expenses. The scale is progressive, by bracket, and the first part of income is not taxed: this is the tax-free amount.
The withholding taxes deducted during the year are advances: the tax assessment notice (aanslagbiljet / avertissement-extrait de rôle) does the final settlement, with the municipal tax.
The key figure in 2026
Source: Taux d’imposition, revenus 2025 et 2026, FPS Finance. Value in force on 1 October 2026.
Worked example
| Taxable income bracket | Rate |
|---|---|
| €0 to €16,720 | 25% |
| €16,720 to €29,510 | 40% |
| €29,510 to €51,070 | 45% |
| Above €51,070 | 50% |
For a single white-collar worker on €3,000 gross, with double holiday pay and a year-end bonus, Indexo estimates the year’s tax at €7,856.64, including a 7% municipal tax.
In Dutch: personenbelasting
On a Dutch-language tax return, tax assessment notice (aanslagbiljet) or letter from the tax authorities, personal income tax is called ‘personenbelasting’; on French-language ones, ‘impôt des personnes physiques (IPP)’. On Indexo’s English pages: personal income tax.
Dutch term taken from: FPS Finance.
Not to be confused with…
- Withholding tax (bedrijfsvoorheffing / précompte professionnel): an advance on your tax, deducted from your salary every month by your employer and paid to FPS Finance.
- Municipal surcharge: a supplement to your personal income tax, paid to your municipality: a percentage of the tax, set by each municipality.
Calculate it for your situation
The full tax of a couple or a single person: salaries, self-employment, pensions, benefits, cadastral income, dividends and reductions, line by line.
Related terms
- Tax-free amountTax and tax return · in Dutch: belastingvrije som
- Withholding taxFrom gross to net · in Dutch: bedrijfsvoorheffing
- Tax assessment noticeTax and tax return · in Dutch: aanslagbiljet
- Tax yearTax and tax return · in Dutch: aanslagjaar
Sources
Parameters in force on 1 October 2026. Each parameter links to its source, the official one where it exists; a secondary source is flagged as such.
- Taux d’imposition, revenus 2025 et 2026, FPS Finance.
- Loi du 15 juillet 2026 portant réforme de l’impôt des personnes physiques, published on 29 July 2026, Belgian Official Gazette. Cross-checked with: Attentia and Wolters Kluwer.
- Toelichting bij deel 1 van de aangifte in de personenbelasting, aanslagjaar 2026 (Vlaams Gewest), FPS Finance.