Practical Guide to Changes in the Netherlands for 2026

We have combed through the official government announcements to bring you this practical overview of what has changed as of January 1, 2026.

1. Work, Income & The 30% Ruling

For the expat community, changes to income and the famous 30% ruling are often the top concern. There is some good news here regarding stability.

• 30% Ruling Remains at 30% (for now): The government has reversed the previously planned "30-20-10" scale-down. For 2026, the tax-free allowance remains at a flat 30%. Note that a reduction to 27% is planned for 2027, but for this year, the rate is stable.
• Minimum Wage Increase: The statutory minimum wage has risen to €14.71 per hour for employees aged 21 and older.
• Income Tax Brackets: The tax brackets for Box 1 (income from work) have been adjusted. The rate for the first bracket (income up to approx. €38,000) has decreased slightly to 35.70%, while the second bracket (up to approx. €78,000) has risen slightly to 37.56%.
• 30% Ruling Salary Cap: The cap on the salary eligible for the 30% ruling (the WNT norm) has been indexed to €262,000 for 2026.

Important Note for Long-Term Expats: If you fell under the transition rules for the "partial non-resident taxpayer status" (partiële buitenlandse belastingplicht)—which exempted you from Box 2 and Box 3 taxes on foreign assets—2026 is the final year you can utilize this benefit. From January 1, 2027, this status will be abolished entirely.

2. Housing: Rent & Property Taxes

The housing market sees significant adjustments in 2026, aiming to balance affordability for tenants and investment potential for buyers.

• Rent Allowance (Huurtoeslag) Expanded: The rules for rent allowance have been simplified. The maximum rent limit to qualify has been removed, making approximately 170,000 more households eligible for this support.
• Maximum Rent Increases:
  • Social Housing: Rents can increase by a maximum of 4.1% (effective July 1).
  • Free Sector (Vrije Sector): Rents can increase by a maximum of 4.4%.
• Transfer Tax (Overdrachtsbelasting): If you are buying a property that you will not live in yourself (e.g., a buy-to-let investment or a holiday home), the property transfer tax has been lowered from 10.4% to 8%.

3. Daily Finances & Taxes

Several changes will affect your spending power and savings.

• Box 3 (Savings & Investments): The tax-free capital allowance (heffingsvrij vermogen) is €58,568 per person (or double that for fiscal partners). The tax rate on returns above this amount remains 36%.
• Cash Payment Limit: A strict ban on cash payments over €3,000 is now in effect for traders/stores to combat money laundering.
• VAT (BTW) Hike on Lodging: Planning a "staycation" or having family visit? Be aware that the VAT on hotel stays and other lodging has jumped from 9% to 21%.
• VAT on Culture & Sports: Contrary to earlier fears, the VAT rate for culture, books, and sports remains at the lower 9% rate.

4. Family & Children

To support working families, the government has boosted several benefits.

• Childcare Allowance (Kinderopvangtoeslag): The income threshold to receive the maximum reimbursement (96%) has been raised significantly to €56,412. This means middle-income families will receive more money back for daycare.
• Child Benefit (Kinderbijslag): The quarterly child benefit payments have increased in line with inflation.

5. Transport

Getting around the Netherlands looks a bit different this year, particularly for EV drivers.

• EV Road Tax Discount Reduced: The 75% road tax discount for electric vehicles has ended. In 2026, EV owners will receive a 30% discount (meaning you pay 70% of the regular rate).
• Train Fares: Ticket prices for NS (Dutch Railways) have increased by approximately 6.5%.
• Fuel: The temporary excise duty reduction on petrol and diesel has been extended for another year, though the rates have increased slightly compared to 2025.

Disclaimer: This post is for informational purposes and serves as a summary of the official government changes per January 1, 2026. For specific personal financial advice, please consult a tax advisor or the official Rijksoverheid channels.