Introduction

The 30% ruling (also known as the expat ruling) is a tax advantage for employees who come to the Netherlands from abroad to work. A detailed explanation can be found here: https://exterus.nl/en/blogs/the-what-why-and-how-of-the-30-ruling-in-the-netherlands. For HR managers and expats, it is not only important to understand how the ruling works, but also how to calculate the amount.

1. What is the 30% ruling?

The ruling allows an employer to split the agreed salary into up to 70% taxable salary and up to 30% as a tax-free expat allowance.

Conditions (2025):

• The employee must possess specific expertise that is scarce in the Dutch labor market. To qualify as specific expertise, the employee must meet the following income thresholds:

  • Age 30 and older: taxable salary must be at least €46,660 gross per year (excluding tax-free allowance).

  • Younger than 30 with a master’s degree: taxable salary must be at least €35,468 gross per year (excluding tax-free allowance).

• Cap: The tax-free allowance is capped at €73,800 per year. For a salary of €246,000 or higher, the 30% is calculated over a maximum of €246,000.

• The employee must continue to meet the specific expertise conditions for the entire duration of the ruling.

2. What is the 30% calculated on?

The 30% is calculated on taxable salary from current employment, including fixed taxable components (such as holiday allowance), but excluding:

• Exempt allowances

• Taxable bonuses from previous employment

• Transition and severance payments*

• Payments during gardening leave (non-active period)

A common mistake is forgetting that gross deductions, such as pension contributions, reduce the taxable salary and therefore must also be included in the calculation.

3. Step-by-step: How to calculate the amount

Step 1: Determine the gross salary for the 30% ruling

Example:

• Annual salary: €70,000

• Holiday allowance: €6,400

• Company car addition: €10,000

• Pension contribution: €3,000

• Transition payment*: €3,000

Total gross salary: €83,400

* The transition payment is excluded, as it counts as salary from previous employment.

Step 2: Calculate 30%
30% of €83,400 = €25,020

Step 3: Check the cap
Since the gross salary in this example is lower than €246,000, the full amount applies.

Step 4: Check specific expertise
Since the taxable salary in this example is higher than €46,660 (or €35,468 if under 30 with a master’s degree), the full 30% tax-free allowance may be applied.

€83,400 − €25,020 = €58,380

Step 5: Apply in payroll administration
The amount of €25,020 is paid out tax-free; the remaining €58,380 is taxed under normal Dutch payroll tax rules.

Visual Calculation Table 30% Ruling (2025)

Handy tool: 30% ruling calculator (2025)

Enter your annual gross salary (excluding holiday allowance) and any other fixed components. The calculator applies the 30% rate, salary cap (€246,000) and the specific-expertise thresholds. Everything runs in your browser — no data is stored.

4. Common Mistakes

• Using net instead of gross salary in the calculation.

• Failing to check annually whether the employee still meets the minimum requirements for specific expertise.

• Forgetting to take gross deductions into account.

• Not considering changes such as part-time work or sabbaticals.

• Not anticipating that once the employee turns 30, the higher income threshold applies starting the following month.

• Not adjusting the percentage of the tax-free allowance if the taxable salary falls below the minimum income threshold → https://exterus.nl/en/blogs/can-you-lose-the-30-ruling

• Forgetting to check the cap. Note: this also changes annually, and certain situations may fall under transitional rules.

5. Practical Tips for HR and Expats

• Check annually whether the employee still meets the income thresholds and the cap.

• Clearly communicate the impact on net income, especially when the cap or minimum thresholds are reached.