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Belgium: Tax brackets rise – but tax levels still prohibitive

Income tax brackets, exemptions and deductions in Belgium are adjusted in line with inflation in January each year. This year, the tax-free personal amount has risen to EUR 6,570 per annum for those without dependent children. However, this rises to EUR 19,590 for those with four dependent children.

The tax rate for the first EUR 8,070 of annual taxable income is 25 percent, but this increases to 50 percent on taxable income above EUR 35,060. In addition, employees must pay local income tax – which can vary from 0 percent to 10 percent depending on the commune where they live – and meet their share of social security contributions. This means that a taxpayer without dependent children living in certain communes will receive only 27 cents for every euro earned above EUR 41,630 per annum.