Belastingbereiken

Belastingbereiken is a term used to describe the ranges of income that determine the amount of income tax an individual owes in a progressive tax system. In such systems, income is divided into multiple bereiken, each with its own marginal tax rate. The concept helps structure how tax is calculated and how the tax burden grows as income increases.

In practice, income is allocated to successive bereiken. Each bereik has a specific tax rate applied to the portion of income that falls within it. Taxes are calculated for each portion and then summed to form the total tax liability. Deductions, credits, and non-taxable allowances reduce the taxable base, which can influence how much income falls into each bereik and the overall tax burden.

Example: a simplified system might have three bereiken—up to 20,000 taxed at 10%, 20,001 to 40,000 taxed at 20%, and income above 40,000 taxed at 30%. A person earning 50,000 would pay 2,000 on the first 20,000, 4,000 on the next 20,000, and 3,000 on the remaining 10,000, for a total of 9,000 in tax. The average tax rate would be 9,000 divided by 50,000, or 18%.

Policy and administration: Governments periodically adjust bereiken thresholds to reflect inflation and policy goals. Employers and tax software use these ranges to calculate withholding and final tax liability.

Terminology and scope: While the term Belastingbereiken is used in Dutch-speaking contexts, similar concepts exist under different names in other countries. The concept may apply to various tax bases, including social contributions, beyond income tax.