Learn › Income tax in Belgium

In short: Belgian personal income tax is a progressive tax with four brackets for 2025 income (assessment year 2026): 25 % up to €16,320, 40 % from €16,320 to €28,800, 45 % from €28,800 to €49,840, and 50 % above that. Each bracket is taxed only at its own rate. A basic tax-free allowance of €10,910 is in principle untaxed. On top comes the additional municipal tax (on average about 7 % of the federal tax, varying by municipality). As of 2026; when in doubt, check the official source.

Income tax basics in Belgium

Kontoo editorial team · Updated 06/24/2026

In Belgium, your earned income is taxed through personal income tax (impôt des personnes physiques / personenbelasting). The system is progressive: your income is split into brackets, and each bracket is taxed at its own rate, from 25 % to 50 %. Part of your pay is already withheld every month by your employer (the professional withholding tax), and your municipality adds its own tax on top of the federal tax. This chapter explains the main principles and is not tax advice.

Add up your taxable income for the year (salary, self-employment income, etc.) after deducting social contributions and professional expenses.
Apply the progressive bracket scale: only the portion of income above a threshold is taxed at the higher rate, not the whole amount.
Account for the effect of the tax-free allowance, the slice of income on which you in principle pay no tax.
Add the additional municipal tax, a percentage of the federal tax set by your municipality, then compare the total with the withholding tax already deducted.

What matters

Personal income tax (IPP in French, PB in Dutch) is the Belgian tax on individuals’ income: salaries, self-employment income, pensions, rental income and so on. It rests on progressivity through cumulative brackets. For 2025 income (assessment year 2026), the federal scale has four brackets: 25 % up to €16,320, 40 % from €16,320 to €28,800, 45 % from €28,800 to €49,840, and 50 % above €49,840. The key point: each bracket is taxed only at its own rate. The tax-free allowance — €10,910 for 2025 income, rising to €11,180 for 2026 income — is a slice of income that is in principle not taxed. Most employees never pay income tax in one go: their employer withholds the professional withholding tax each month, an advance on the tax. Finally, Belgium is a federal state: although the base scale is federal and uniform, the Regions (Flanders, Wallonia, Brussels-Capital) have their own tax powers (notably on housing and certain reductions), and above all each municipality adds an additional municipal tax calculated as a percentage of the federal tax. This municipal tax varies widely between municipalities. This chapter is educational and does not replace personalised tax advice.

ExampleSimplified example for taxable income of €35,000 (2025 income). Bracket 1: €16,320 × 25 % = €4,080. Bracket 2: (€28,800 − €16,320) = €12,480 × 40 % = €4,992. Bracket 3: (€35,000 − €28,800) = €6,200 × 45 % = €2,790. Gross total before the allowance ≈ €11,862. Then you subtract the effect of the tax-free allowance (€10,910 taxed at the first-bracket rate, i.e. ≈ €2,728 reduction), giving federal tax of about €9,134. On top comes the additional municipal tax: at 7 %, roughly €639 more. Figures are rounded and illustrative; the official calculation includes further elements. As of 2026, check the official source.

To see how a monthly saving grows over time after tax, use the Kontoo calculator (/compound-interest-calculator). For your exact situation, rely on the official SPF/FOD Finances simulator (Tax-Calc): as of 2026, when in doubt always check the official source.

In depth

Federal, regional and municipal

Belgian income tax combines three levels: a federal scale that is the same everywhere, regional powers (Flanders, Wallonia, Brussels) over certain reductions and housing, and an additional municipal tax set locally. Understanding this layering explains why two people on the same salary pay different amounts.

Withholding and the annual return

The professional withholding tax is only an advance. The annual tax return recalculates the real tax based on your family situation, your deductions and your municipality. The outcome can be a refund or a balance to pay.

Tax-free allowance and dependants

The basic tax-free allowance (€10,910 for 2025) can be increased depending on the number of children or dependants, which lowers the tax due. It is one of the main relief mechanisms for families. As of 2026, check the official source.

Checklist

Income tax is progressive: only the portion above a threshold is taxed at the higher rate.
The four rates for 2025 income are 25, 40, 45 and 50 %.
The professional withholding tax is an advance deducted from salary each month.
The additional municipal tax varies by municipality and is added on top of the federal tax.

Common myths

Myth: “Moving into a higher bracket lowers my net pay.”

Reality: False. Only the euro above the threshold is taxed at the higher rate. Earning more always leaves you with more net pay; income already earned is not taxed again.

Myth: “Tax is the same everywhere in Belgium.”

Reality: The federal scale is uniform, but the additional municipal tax differs by municipality, and the Regions have their own tax powers. At the same income, the final total can therefore vary.

Frequently asked questions

If I move into the 50 % bracket, is all my income taxed at 50 %?

No. This is a common misconception. Only the portion of income above the €49,840 threshold (2025 income) is taxed at 50 %. The lower brackets stay taxed at 25, 40 and 45 %. Earning one euro more never increases the tax on the euros you already earned.

What is the professional withholding tax?

It is tax withheld at source: each month your employer deducts an advance from your salary and pays it to the tax authority. At your annual tax return the real tax is recalculated; you get back any overpayment or pay the balance. As of 2026, always check the official source.

Why does my neighbour in another municipality pay more or less?

The federal scale is identical everywhere in Belgium, but each municipality sets its own additional municipal tax, a percentage of the federal tax. Depending on the municipality it ranges from roughly 0 % to 9 %, which can mean hundreds of euros of difference at the same income.

All lessons · Glossary · Editorial · Kontoo does the math and explains – this is general education, not tax, legal or financial advice.

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