changes to the 30% ruling: 2026 and beyond

The 30% ruling has been amended twice in three years, and the changes that took effect in 2024 and 2025 are the ones most expats still get wrong. The phased 30/20/10 reduction announced in late 2023 was reversed before it could fully bite, but the Box 2 and Box 3 exemption for partial non-residents did end on 1 January 2025. From 2027 the headline percentage drops from 30 to 27 for new rulings, and the salary threshold is being indexed annually. This page lays out which rule applies to which cohort, and what to watch in the next two years.

What actually changed since 2024

The political back-and-forth makes this confusing. The current state of play:

• 2024. A phased 30/20/10 reduction was passed — full 30% for the first 20 months, then 20%, then 10%. Many employers built this into payroll.
• 2025. Parliament reversed most of the phasing. The 30% rate became flat again for existing and new rulings, but the partial non-resident election for Box 2 and Box 3 was scrapped. From 1 January 2025 you pay Dutch wealth tax (Box 3) and substantial-interest tax (Box 2) on worldwide assets like any Dutch resident.
• 2026. The flat 30% continues. The salary threshold is indexed: €46,660 for the standard test and €35,468 for the under-30 master’s variant.
• 2027 (announced). The headline percentage drops to 27% for new rulings. Existing rulings keep their original 30% until the original end date.

If you were granted the ruling under the brief 2024 phased rules and your employer reduced your allowance from month 21, ask payroll whether they have re-grossed your salary back to the flat 30% basis.

What the 2027 change means for new arrivals

If your first Dutch working day falls on or after 1 January 2027, your ruling will be 27% rather than 30%. A few concrete consequences:

1. Lower net take-home. On a €100,000 gross salary, the difference between a 30% and a 27% ruling is roughly €1,500 net per year — meaningful but not transformative.
2. Mortgage capacity. Most Dutch lenders test your gross salary, not the post-30% taxable amount, so the impact on borrowing capacity is muted. The lenders who do test on taxable income will lend slightly less.
3. Salary negotiation. If you are joining ASML, NXP or another Brainport employer late in 2026, signing a contract with a start date before 1 January 2027 locks in the 30% rate for the full 5 years.
4. Transitional rules. Rulings granted before 2027 are not retroactively reduced. The 27% applies to the new cohort only.

What did NOT change — common misconceptions

A few rules that expats often think have changed but have not:

• The five-year duration is unchanged. It has been five years since 2019. Some still believe it is eight — that ended seven years ago.
• Box 1 income tax treatment is unchanged. The 30% allowance is still tax-free, and the remaining 70% is taxed at standard Box 1 brackets.
• The 150-km rule is unchanged. Same 16-of-24-months test.
• The under-30 master’s threshold is unchanged in structure — only the indexed amount moves annually.

What did change in 2025 and catches people out: the Box 2 / Box 3 partial non-resident election is gone. If you hold shares, ETFs or savings outside the Netherlands, you owe Dutch tax on the deemed return whether you are a 30%-ruling holder or not.

Ready for a closer look?

Unsure which version of the rules applies to your beschikking? Book a free 30-minute call with an advisor in Eindhoven or Arnhem to check.

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Reviewed by Joan Beek, CFP & FFP — last reviewed 2026-05-12.