Calculating your net income as a freelancer: from profit to take-home
Written by Ilias Aarrass6 min read · Published on · Last reviewed on 
In short
You calculate your net income as a freelancer by deducting the self-employed allowance (€ 1,200) and the 12.7 per cent SME profit exemption from your profit, calculating income tax on the rest, subtracting the tax credits and paying 4.85 per cent Zvw. With € 50,000 profit you keep about € 40,327 net in 2026.
- Always calculate from your profit excluding VAT, not from your turnover.
- Box 1 has three brackets in 2026: 35.75%, 37.56% and 49.50%.
- With € 50,000 profit you pay about 19% tax and Zvw, with € 80,000 about 31%.
- From your net income you pay for your own holidays, buffer and provisions.
As an employee you see your net pay on your payslip every month. As a freelancer you do not: your client pays your invoice, and only after your tax return do you know exactly what is left for you. You can still work it out quite accurately in advance. You start with your profit, subtract the entrepreneur's allowance and the SME profit exemption, calculate income tax, deduct the tax credits and finally pay the Zvw healthcare contribution. In this article we go through those steps one by one and work out two examples in full, with a profit of 50,000 and of 80,000 euros. That shows what you can really spend each month.
First: turnover is not profit
The biggest mistake is calculating with your turnover. You pay no income tax on the VAT you invoice, because you pass that on to the tax authorities. Your business costs, such as software, your phone, your car and your accountant, also come off. What remains is your profit, and that is where the calculation starts. The difference between these terms is explained in turnover, profit and income.
From profit to net income in five steps
The order is always the same. The amounts below apply to 2026, for a freelancer under state pension age who meets the hours criterion.
- Subtract the self-employed allowance of € 1,200 from your profit.
- Then subtract 12.7 per cent SME profit exemption. What remains is your taxable profit.
- Calculate income tax in box 1: 35.75 per cent up to € 38,883, 37.56 per cent up to € 78,426 and 49.50 per cent above that.
- Deduct the tax credits: the general tax credit (up to € 3,115) and the employed person's tax credit (up to € 5,685). Both shrink as your income rises. You calculate the employed person's tax credit on your profit before deductions.
- Add the Zvw contribution: 4.85 per cent of your taxable profit, up to a maximum income of € 79,409.
Worked example: € 50,000 profit
Suppose your profit in 2026 is € 50,000, you have no other income and no tax partner, and you do not use the starter's allowance. The calculation then looks like this.
From € 50,000 profit to net
- Profit after self-employed allowance
- € 48,800
- After SME exemption (12.7%): taxable profit
- € 42,602
- Box 1 income tax
- € 15,297
- Less general tax credit and employed person's tax credit
- € 7,690
- Income tax payable
- € 7,607
- Zvw contribution (4.85%)
- € 2,066
Result: Your net income is roughly € 40,327, around € 3,360 a month. So you pay about 19 per cent of your profit in tax and Zvw.
What changes with a higher profit?
With more profit the tax percentage rises, mainly because the tax credits are phased out. Every extra euro then costs you not only 37.56 per cent tax, but also part of your credits. That is why you keep relatively less of the second € 30,000 than of the first.
| € 50,000 profit | € 80,000 profit | |
|---|---|---|
| Taxable profit | € 42,602 | € 68,792 |
| Income tax after credits | € 7,607 | € 21,258 |
| Zvw contribution | € 2,066 | € 3,336 |
| Net per year | € 40,327 | € 55,406 |
| Net per month | € 3,361 | € 4,617 |
Net is not yet free to spend
Besides net pay, an employee also gets holiday pay, continued pay during illness and an employer who contributes to provisions for later. As a freelancer you arrange all of that yourself from your net income. So also set money aside for days off and a buffer, and remember that benefits depend on your profit.
Put the tax and Zvw you expect to pay straight into a separate account. How to choose that percentage is explained in how much to set aside for tax. With a provisional assessment you spread the payment over the year.
Frequently asked questions
What percentage of my profit goes on tax?
With a profit of € 50,000 it is about 19 per cent in 2026 including Zvw, with € 80,000 about 31 per cent. The higher your profit, the higher the percentage.
Does VAT count towards my profit?
No. You pass on the VAT you invoice and reclaim the VAT on your costs. You always calculate your profit excluding VAT.
What if I do not meet the hours criterion?
Then you lose the self-employed allowance, but you still get the SME profit exemption. Your taxable profit becomes slightly higher and your net income slightly lower.
Sources
- Rates and tax credits 2026Belastingdienst · belastingdienst.nl
- Self-employed deduction 2026: € 1,200 and the hours criterionBelastingdienst · belastingdienst.nl
Sources checked on
This article provides general information based on the rules known for 2026 and does not replace personal tax advice. For your specific situation, we're happy to take a look with you.
