Netherlands Tax Changes 2027: the 27% Ruling and the Belastingplan
The expat ruling drops to 27% under existing law. The Belastingplan 2027 raises the first two bracket rates but also the tax credits, so most employees pay slightly less. Everything except the 27% ruling is a draft until the Senate votes in December.
Headline change
Maximum tax-free allowance under the expat ruling, from 1 January 2027
Netherlands 2026 vs 2027: key parameters
| Parameter | 2026 | 2027 | Status |
|---|---|---|---|
| 30% ruling: max tax-free allowance | 30% | 27% | Adopted |
| Salary norm for the ruling | €48,013 (under 30 with a master's: €36,497) | Higher, amount not published | Adopted (increase), amount pending |
| Box 1 rate, bracket 1 | 35.75% | 36.23% | Draft |
| Bracket 1 upper limit | €38,883 | €39,247 | Draft |
| Box 1 rate, bracket 2 | 37.56% | 38.16% | Draft |
| 49.5% top rate starts at | €78,426 | €78,426 (frozen) | Draft |
| Algemene heffingskorting (general tax credit), max | €3,115 | €3,154 | Draft |
| General credit phase-out: start / rate | €29,736 / 6.398% | €30,910 / 6.638% | Draft |
| Arbeidskorting (labour tax credit), max | €5,685 | €5,929 | Draft |
| Labour credit phase-out starts at | €45,592 | €47,834 | Draft |
| Zelfstandigenaftrek (self-employed deduction) | €1,200 | €900 | Adopted |
| Startersaftrek (starter deduction) | €2,123 | €10 (abolished from 2028) | Draft |
| MKB-winstvrijstelling (SME profit exemption) | 12.70% | 12.70% | Draft (unchanged) |
| Max tax-free commuting allowance | €0.23/km | €0.25/km (retroactive to 1 January 2026) | Draft |
Box 1 rates include 27.65% national insurance contributions (volksverzekeringen). The general credit phase-out point becomes final once the minimum wage is set in November.
Take-home pay: 2026 vs 2027 (draft)
| Gross salary / year | Net 2026 | Net 2027 (draft) | Difference |
|---|---|---|---|
| €50,000 | €39,140 | €39,352 | +€212 |
| €70,000 | €49,047 | €49,091 | +€44 |
| €100,000 | €62,711 | €62,684 | −€27 |
| €150,000 | €85,818 | €85,401 | −€417 |
TaxRavens calculation: employee under state pension age, no 30% ruling, no other deductions, same gross in both years. Net is gross minus box 1 tax including national insurance; pension fund contributions are not included. 2027 uses the Belastingplan 2027 draft. Below about €47,800 the 2027 result depends on arbeidskorting kink points that the Belastingdienst publishes in December, so lower salaries are not shown.
Employees
Higher rates, bigger credits
The first two bracket rates rise, and the bracket 1 limit grows by only 1.248%, about half the usual inflation correction. The credits grow faster: the arbeidskorting gains €173 at each kink point on top of indexation, and the general credit rises to €3,154. For most salaried workers the credits win, so tax falls slightly up to around €70,000.
From about €80,000 the higher second-bracket rate outweighs the credits: +€27 a year at €100,000 and +€417 at €150,000, where no credits are left.
The maximum tax-free commuting allowance rises from €0.23 to €0.25 per km, retroactively from 1 January 2026 (draft).
Two credits shrink (draft): the IACK for working parents of young children (max €3,032 → €2,918) and the ouderenkorting for pensioners (max €2,067 → €1,993).
Self-employed (ZZP)
The starter deduction all but disappears
The zelfstandigenaftrek falls from €1,200 to €900; this step was already in the law. The Belastingplan 2027 also cuts the startersaftrek, an extra deduction for new businesses, from €2,123 to €10 and abolishes it from 2028 (draft). The MKB-winstvrijstelling stays at 12.7%.
A starter loses €2,413 of deductions in total. With the higher bracket rate, that is roughly €900 more tax a year at a €40,000 profit (rough TaxRavens estimate).
The 2027 income-dependent Zvw (health insurance) contribution rate is not published yet.
Expats and relocants
27% instead of 30%
If your ruling started in 2024 or later, the tax-free part of your salary drops to 27% on 1 January 2027, so 73% of the salary is taxed. Rulings granted before 2024 keep 30% until their 60 months run out.
€80,000 gross: about €13,888 tax in 2026 (30% tax-free) vs €14,958 in 2027 (27%), so +€1,070 a year. At €100,000: +€1,495; at €120,000: +€2,043 (box 1 only, with the draft 2027 rates and credits).
The salary norm to qualify (€48,013 in 2026) gets an extra increase on 1 January 2027. Check the new amount, usually published in December, before you sign: borderline salaries may no longer qualify.
Holders covered by the 2023 transitional rule lose partial foreign tax liability (non-resident treatment for box 2 and box 3) after 2026.
Box 3: a cut to the tax-free allowance for savings and investments (heffingsvrij vermogen) is under discussion in parliament. Nothing is final; an amended proposal is expected in early November.
What is still pending
FAQ
Is the Dutch 30% ruling really becoming 27% in 2027?
Yes. The cut is already law and applies from 1 January 2027. If your ruling started before 2024, you keep 30% until your 60 months end. At €80,000 gross, the switch to 27% costs about €1,070 a year by our calculation.
Will I pay less tax in the Netherlands in 2027?
Most employees will, slightly, if the Belastingplan 2027 passes as drafted: about €212 less at €50,000 and €44 less at €70,000. From about €80,000 tax rises a little: +€27 at €100,000 and +€417 at €150,000.
When will the 2027 Dutch tax rates be final?
After the Tweede Kamer vote in November and the Eerste Kamer vote in December 2026. The Belastingdienst then publishes the final 2027 payroll tables in December.
What changes for ZZP'ers in 2027?
The zelfstandigenaftrek falls from €1,200 to €900 (law), and the draft plan cuts the startersaftrek from €2,123 to €10 before abolishing it in 2028. The MKB-winstvrijstelling stays at 12.7%.
