Rates

Tax rates

  • What are the tax rates for a Belgian resident?

    Personal income tax has progressive tax rates. This means that the higher your income is, the higher the rate of tax you pay. Personal income tax is calculated on all taxable income, even if some of it was realised or received abroad.

    The progressive tax rates for 2020 income are:

    Income bracket Tax rate
    Bracket 1 From EUR 0.01 to EUR 13 440 25 %
    Bracket 2 From EUR 13 440 to EUR 23 720 40 %
    Bracket 3 From EUR 23 720 to EUR 41 060 45 %
    Bracket 4 More than EUR 41 060 50 %

    Example:
    A resident has a taxable income of EUR 26 000.
    Calculation of the resident’s basic tax:
    25% of 13 440 = 3 360
    40% of (23 720 – 13 440) = 4 112
    45% of (26 000 – 23 720) = 1 026
    Basic tax = 3 360 + 4 112 + 1 026 = EUR 8 498

    Some income is not taxed at these progressive rates and is instead subject to separate rates (e.g. certain supplementary pension capital).
    Everyone who is subject to personal income tax is entitled to a ‘tax-free allowance’. This means that a portion of your taxable income is not taxed. The tax-free allowance is EUR 8 990 (for 2020 income). It may be higher depending on your personal situation (e.g. if you have any dependent children).

    The amount of tax you pay is also reduced if you have

    • certain types of income (e.g. foreign income, pensions and substitute income, etc.)
    • certain expenses (e.g. childcare, pension savings, etc.)
  • What are the tax rates for a non-resident?

    As is the case with personal income tax, non-resident tax has progressive tax rates. This means that the higher your income is, the higher the rate of tax you pay. Non-resident tax is only calculated on income that was realised or received in Belgium.

    The progressive tax rates for 2020 income are:

    Income bracket Tax rate
    Bracket 1 From EUR 0.01 to EUR 13 440 25 %
    Bracket 2 From EUR 13 440 to EUR 23 720 40 %
    Bracket 3 From EUR 23 720 to EUR 41 060 45 %
    Bracket 4 More than EUR 41 060 50 %

    Example:
    A non-resident has a taxable income in Belgium of EUR 10 000 and also has foreign income.
    The non-resident’s basic tax is EUR 2 500 (10 000 x 25%).

    Some income is not taxed at these progressive rates and is instead subject to separate rates (e.g. certain supplementary pension capital).
    If the earned income that is taxable in Belgium amounts to at least 75% of the total earned income (both the Belgian and foreign earned income), a non-resident is entitled to a ‘tax-free allowance’. This means that a portion of your taxable income is not taxed. The tax-free allowance is EUR 8 990 (for 2020 income). It may be higher depending on your personal situation (e.g. if you have any dependent children).

    The amount of tax you pay is also reduced if you have

    • certain types of income (e.g. pensions and substitute income)
    • certain expenses (e.g. childcare, pension savings, etc.)

    Numerous tax benefits are also subject to the condition that the earned income that is taxable in Belgium accounts for at least 75% of the total earned income.