30% ruling changes update
The Dutch 30 percent ruling will see important adjustments in 2026. For employers hiring international talent, understanding these changes is essential to ensure compliance and to structure compensation packages correctly.
Dutch 30 percent ruling changes 2026
Below, we outline the Netherlands 30% ruling updates for 2026, including new salary thresholds, the income cap and what this means for hiring talent in the Netherlands.
New salary thresholds from 1 January 2026
As of 1 January 2026, updated income norms apply to the 30% tax ruling Netherlands 2026.
To qualify for the ruling, the employee’s taxable salary (after applying the 30% allowance) must exceed the minimum annual threshold:
- Employees aged 30 and over: €48,013 per year (including 8% holiday allowance) (up from €46,660 in 2025 and €46,107 in 2024)
- Employees under 30 with a Master’s degree: €36,497 per year (including 8% holiday allowance) (up from €35,468 in 2025 and €35,048 in 2024)
These thresholds apply to new applications and new employees. However, employees who already have a valid 30% ruling must also continue to meet the income norm for the facility to remain applicable.
Important: eligibility vs maximum application
Meeting the minimum salary threshold does not automatically mean the 30% can be applied in full.
The annual income norms mentioned above allow the 30% ruling to be applied, but in some cases only partially. To apply the full 30% tax-free allowance, the gross monthly salary must be sufficiently high so that the remaining 70% still meets the required income standard.
For full application in 2026, the minimum monthly salaries (including 8% holiday allowance) are:
- Aged 30 and over: €5,715.83
- Under 30 with qualifying Master’s degree: €4,344.88
If the salary falls between the eligibility threshold and these higher amounts, the 30% may only be applied partially. For employers, this distinction is crucial when modelling total employment costs.
Income cap on the 30% ruling
An income cap applies to employees who obtained the 30% ruling after 1 January 2024.
In 2026, the 30% reimbursement may only be calculated over a maximum annual salary of €262,000. Any income exceeding this amount does not qualify for the tax-free benefit. This cap applies pro rata in part-year situations.
What does this mean for employers?
The changes to expat tax benefits Netherlands 2026 require careful payroll planning. Employers should:
- Review salary packages for new international hires
- Verify whether current employees continue to meet the income norm
- Assess whether full or partial application of the ruling is possible
- Factor in the €262,000 cap when budgeting senior roles
Understanding the financial impact is particularly important when evaluating overall employer costs in the Netherlands in 2026 and when deciding whether to establish a local entity or use an Employer of Record in the Netherlands in 2026.
Looking ahead to 2027
Further changes to the expat ruling are expected from 1 January 2027. The tax-free percentage is proposed to decrease from 30% to 27%. However, this measure has not yet been fully implemented and remains subject to final legislative approval. Employers hiring international talent should therefore monitor developments closely.
If you would like to understand how the Dutch 30 percent ruling changes 2026 affect your organisation or future hiring plans, our team is happy to advise. Please do not hesitate to reach out.
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