The Dutch government has confirmed one of the most significant tax changes for expats in years: starting January 1, 2027, the 30% ruling will be reduced to a 27% ruling. This change will affect all current and future holders of the ruling.
What is changing?
Currently, qualifying skilled migrants in the Netherlands can receive up to 30% of their gross salary as a tax-free allowance. From 2027, this percentage drops to 27%. The change applies universally — there are no grandfathering provisions for existing holders.
How does this affect your take-home pay?
The impact depends on your gross salary. Here are estimates at common salary levels:
| Gross salary | 2026 benefit (30%) | 2027 benefit (27%) | Annual difference |
|---|---|---|---|
| €50,000 | €15,000 tax-free | €13,500 tax-free | −€1,500 |
| €75,000 | €22,500 tax-free | €20,250 tax-free | −€2,250 |
| €100,000 | €30,000 tax-free | €27,000 tax-free | −€3,000 |
| €150,000 | €45,000 tax-free | €40,500 tax-free | −€4,500 |
Note: The ruling remains capped at the WNT norm (€262,000 in 2026). At 27%, the maximum tax-free allowance will be approximately €70,740 instead of the current €78,600.
What stays the same?
- Duration: The ruling still lasts a maximum of 5 years from your first day of employment in the Netherlands.
- Eligibility criteria: The same requirements apply — recruited from abroad, specific expertise, minimum salary thresholds.
- Minimum salary: For 2026, the minimum taxable salary remains €48,013 (or €36,497 for under-30 with a master's degree).
- Partial non-resident status: The option to choose partial non-resident taxpayer status (Box 2 and Box 3 exemption) continues.
What can you do to prepare?
- Negotiate your salary now. If you're in contract negotiations, factor in the reduced benefit when discussing compensation. A higher base salary can offset the lower tax-free percentage.
- Maximize 2026. If you have the ruling, make sure you're claiming the full 30% for all of 2026. Some employers don't apply the ruling to bonuses or variable pay — check with your payroll department.
- Review your overall tax position. The 30% ruling interacts with other tax benefits. A tax advisor can help you optimize your full tax situation before the change takes effect.
- Use our calculator. Our 30% ruling calculator already includes a 2027 comparison — enter your salary to see the exact impact.
Timeline
- 2026: Full 30% tax-free allowance applies (current rules).
- January 1, 2027: Reduction to 27% takes effect for all ruling holders.
The change was announced as part of the 2026 tax plan (Belastingplan 2026) and is now confirmed legislation. Unlike the previously proposed step-down model (30/20/10%), the government opted for a simpler flat reduction to 27%.
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