Netherlands: cost of living

How much is the average energy bill in the Netherlands?

The average Dutch household will spend €1,993 on energy in 2026, based on energy prices in January 2026, according to Statistics Netherlands (CBS). That is €52, or 2.5%, less than in 2025. CBS says most of the fall comes from lower expected consumption, especially of natural gas, along with lower variable rates for gas and electricity. Fixed charges, transport costs and the energy tax on gas went up.

The estimate is for an average household and contract, so actual bills vary widely with use, insulation and contract type. CBS does not include the charges some energy companies make for feeding solar power back into the grid.

Official sources: CBS: Average energy bill slightly lower this year

What is the poverty rate in the Netherlands?

A total of 551 thousand people in the Netherlands, 3.1% of the population, were living in poverty in 2024, up from 2.7% in 2023, according to Statistics Netherlands (CBS) in its publication Life in Poverty 2025. The rate had fallen for five years before that. The share of children living in poverty was unchanged at 2.8%.

CBS says poverty rose in 2024 mainly because the temporary energy allowance ended, partly offset by higher child allowance. CBS measures poverty against a modest but adequate budget, which gives a lower rate than the EU's at-risk-of-poverty measure of 60% of median income, so the two should not be compared directly.

Official sources: CBS: Rise in poverty rate after five years of decreases

What is the VAT rate in the Netherlands?

The standard VAT rate in the Netherlands is 21%, according to Government.nl. There is a reduced rate of 9%, which applies to items such as food, and a 0% rate. Some goods and services are exempt, including education, health care, childcare, insurance and banking services.

Dutch rates follow the EU VAT Directive, which requires a standard rate of at least 15%. Government.nl notes plans to remove the reduced rate for accommodation and certain cultural goods and services, so check the Tax and Customs Administration for the rate that applies to a specific product.

Official sources: Government.nl: VAT rates and exemptions

Did purchasing power rise in the Netherlands?

Median purchasing power in the Netherlands rose 1.2% in 2025, the third yearly rise in a row, according to Statistics Netherlands (CBS), published on 21 September 2026. Households whose main income came from employment saw a median rise of 2.2%, driven by a 5.0% increase in negotiated wages. Pensioners and the self-employed saw smaller increases, partly because of tax measures.

The median means half of people saw a smaller change and half a larger or equal one. CBS measures the change in each person's real disposable income, so it differs from the purchasing power forecasts the CPB publishes ahead of each year.

Official sources: CBS: Purchasing power up by 1.2 percent in 2025

How much income tax do Dutch households pay?

The median household in the Netherlands paid 12.3% of its gross household income in income tax and social insurance contributions in 2024, down from 15.4% in 2011, according to Statistics Netherlands (CBS). For the top 10% of earners the median burden was 24.9%. Dual-income households and pensioners had the lowest burdens.

The measure covers income tax and statutory social insurance contributions as a share of gross income, from CBS's integrated income and wealth data. It does not include VAT, excise duties or local taxes. For current income tax bands, see the Tax and Customs Administration.

Official sources: CBS: Tax burden on households has fallen from 15% to 12% since 2011

How much did household income grow in the Netherlands?

Real household disposable income in the Netherlands grew 2.7% in 2025, according to Statistics Netherlands (CBS). CBS says the rise came mainly from higher employee pay, with total employee remuneration up 6.4% on higher collectively agreed wages. Mortgage debt rose by €48.1 billion to €935.9 billion, and households held more than €540 billion in savings and other deposits.

These are national accounts figures for the household sector as a whole, adjusted for inflation. They show the total, not what a typical household experienced; for that, CBS's median purchasing power figures are a better guide.

Official sources: CBS: Household disposable income rose by 2.7 percent in 2025

What is the Netherlands' inflation rate?

The IMF puts consumer price inflation in the Netherlands at 3.2% in 2025. Its high point since 2005 was 2022, at 10.0%; its low point was 2016, at 0.3%. Europe & Central Asia median: 3.7%; the Netherlands is 29th highest of 48. Of 165 countries with 2025 data, 81st highest.

How much do people in the Netherlands spend?

In 2025, household consumption per person in the Netherlands was $22,581, according to the World Bank. No year since 2005 has been higher. It is 13th highest of 44 in Europe & Central Asia, where the median is $11,266. Of 124 countries with 2025 data, 16th highest.

What is the extreme poverty rate in the Netherlands?

According to the World Bank, the share of people living on less than $3.00 a day in the Netherlands was 0.1% in 2021. Its high point since 2005 was 2008, at 0.2%; its low point was 2006, at 0.0%. It is 29th highest of 40 in Europe & Central Asia, where the median is 0.3%. Of 80 countries with 2021 data, 64th highest.

How many people in the Netherlands are poor?

The latest figure from the World Bank, for 2021, is 14.5%. No year since 2015 has been higher. Europe & Central Asia median: 15.9%; the Netherlands is 25th highest of 40. Of 72 countries with 2021 data, 53rd highest.

How unequal are incomes in the Netherlands?

25.7: that is the Gini index in the Netherlands for 2021, according to the World Bank. No year since 2005 has been lower. Europe & Central Asia median: 31.6; the Netherlands is 37th highest of 40. Of 80 countries with 2021 data, 77th highest.

How many people in the Netherlands face food insecurity?

The FAO puts moderate or severe food insecurity in the Netherlands at 8.9% in 2024. It is the top of the series, which starts in 2015. Europe & Central Asia median: 7.6%; the Netherlands is 19th highest of 45. Of 135 countries with 2024 data, 102nd highest.