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.
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.
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.
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)
|
Step |
Description |
Amount (€) |
Calculation |
|
Annual salary |
70,000 |
— |
|
|
+ Holiday allowance (8%) |
6,400 |
— |
|
|
+ Other fixed salary components |
10,000 |
— |
|
|
– Gross deductions |
3,000 |
— |
|
|
1 |
Total gross salary |
83,400 |
70,000 + 6,400 + 10,000 – 3,000 |
|
Percentage 30% ruling |
30% |
— |
|
|
2 |
Tax-free allowance |
25,020 |
0.30 × 83,400 |
|
Cap check |
73,800 |
Maximum exemption per year |
|
|
3 |
Applied exemption |
25,020 |
Lowest of step 2 and 3 |
|
Taxable salary (after exemption) |
58,380 |
83,400 − 25,020 |
|
|
4 |
Specific expertise check |
58,380 |
58,380 > 46,660 (or 35,468) |
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.
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.