Discover how the announced tax measures on Prinsjesdag 2025 will impact your finances.
Introduction
On Prinsjesdag 2025, the Dutch government has announced a series of tax measures that will take effect in 2026, many of which have fiscal implications for individuals, entrepreneurs, and investors. These measures include adjustments to income tax brackets and rates, changes to deductions and exemptions, modifications to Box 3 wealth taxation, and the phasing out of certain tax benefits. While some of these changes aim to simplify the system and ensure fairness, others are designed to increase tax revenues or align the tax treatment of different groups. Below is an overview of the key measures and their expected impact.
Impact on individuals
Adjustment of Income Tax Rates and Bracket Thresholds in Box 1
In Box 1 of the income tax, the rate in the first bracket will be reduced by 0.12 percentage points (to 35.7 percent), while the rate in the second bracket will increase by 0.08 percentage points (to 37.56 percent). The threshold for the first bracket will rise to €38,883, and the threshold for the second bracket will increase to €79,137. Please see the table below.
Income Tax Rates 2026 (rates for 2025 in parentheses)
Taxpayers born on or after January 1, 1946:
|
For taxable income from employment and home of more than
|
Up to
|
Rate below state pension age
|
Rate above state pension age
|
|
-
|
€ 38,883 (€ 38,441)
|
35.70% (35.82%)
|
17.80% (17.92%)
|
|
€ 38,883 (€ 38,441)
|
€ 79,137 (€ 76,817)
|
37.56% (37.48%)
|
37.56% (37.48%)
|
|
€ 79,137 (€ 76,817)
|
-
|
49.50% (49.50%)
|
49.50% (49.50%)
|
Taxpayers born before January 1, 1946:
|
For taxable income from employment and home of more than
|
Up to
|
Rate
|
|
-
|
€ 41,123 (€ 40,502)
|
17.80% (17.92%)
|
|
€ 41,123 (€ 40,502)
|
€ 79,137 (€ 76,817)
|
37.56% (37.48%)
|
|
€ 79,137 (€ 76,817)
|
-
|
49.50% (49.50%)
|
Final Year of Transitional Regime for Partial Non-Residency
The partial non-residency status for expats using the 30% ruling was abolished in 2025. A transitional regime was introduced for expats already using the status at the end of 2023, allowing them to opt for partial non-residency until the end of 2026. The coming year will therefore be the final year in which this option remains available.
Codification of Temporary Rental Rules for Owner-Occupied Homes
The rules allowing homeowners to temporarily rent out their property while living elsewhere—for example, due to a foreign posting—will be codified and expanded. As a result, (step-)grandchildren and other direct descendants will also be allowed to temporarily live in the property without affecting the homeowner’s right to mortgage interest deduction.
Wealth Tax in Box 3
The deemed return on other assets in Box 3 will increase to 7.78 percent (from 5.88 percent in 2025). The calculation method will be revised to better reflect rental income and personal use of real estate. In addition, the tax-free allowance will be reduced to €51,396 (from €57,684 in 2025).
Impact for entrepreneurs
Phasing Out of the Self-Employed Deduction
The tax benefit for self-employed workers (zzp’ers) will continue to be phased out, with a target reduction to €900 by 2027. For 2026, the deduction will amount to €1,200. The additional deduction for new entrepreneurs remains at €2,123.
Employee Stock Options for Startups and Scale-ups
The Spring Memorandum introduced a new tax scheme to encourage employee participation in startups and scale-ups. Under this scheme, taxation of stock options will be deferred until the actual sale of the shares. In addition, the maximum tax rate on income from such options will be reduced from 49.5 percent to 32.17 percent, as only 65 percent of the option income will be taxable.
Although this scheme is not part of the Tax Plan, it is mentioned because of potential overlap with the lucrative interest scheme. For stock options that fall under both schemes, it is being considered to deny the lower tax burden of the startup scheme. This will be further examined during the implementation process.
Impact for investors
Valuation of Rented Properties (Leegwaarderatio)
Both in income tax and inheritance tax, rented homes may be valued using the “leegwaarderatio.” New rules will allow valuation at market value if that value is at least 10 percent lower than the calculated leegwaarderatio. In addition, the leegwaarderatio can no longer be applied in cases of non-arm’s-length rentals between related parties.
Green investment exemption
The exemption and tax credit for green investments in box 3 will be abolished as of January 1, 2028. The previously planned abolition as of January 1, 2027, has proved unfeasible. However, the exemption for green investments will be reduced from €26,312 (2025; partners €52,624) to €200 (partners €400) as of January 1, 2027. In 2026, this exemption will be indexed to €26,715 (partners €53,430).
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