What You Can Expect From the 2027 Dutch Tax Plan (Prinsjesdag 2026)

On September 15, the Dutch government released the Belastingplan 2027 (2027 Dutch Tax Plan). While there are no major changes, there are several smaller ones that will affect employees, business owners, and savers. The information below outlines the changes based on how you earn your money.

First, the Fine Print

Because the Belastingplan 2027 is still pending in parliament, the details discussed may change. For this reason, we will review the details as they are released. Most tax plans usually survive the debate, so it pays to know what is coming.

If You Receive Your Income From a Salary or Pension

There will be an increase in the first and second income tax brackets in Box 1. The first bracket will increase from 35.75% to 36.23% and the second bracket will increase from 37.56% to 38.16%. The top rate will remain at 49.50%.

If you currently earn a salary or pension in the Netherlands, you can expect to pay a bit more tax on the same income. For more information about the different boxes, see our guide to the Dutch income tax system.

Good news: your employer can pay you 0.25 euros per business kilometer driven, tax-free, including your commute. This is a rise from 0.23 euros, and it already applies retroactively from January 1, 2026, so it is worth checking what you have been paid this year. The Belastingplan 2027 writes the higher amount into law. Your employer can choose to pay less; how much they pay is determined by your work contract or CAO.

If You Work for Yourself

This plan takes a bigger toll on self-employed persons. The zelfstandigenaftrek, the deduction for self-employed persons, will shrink from 1,200 euros to 900 euros in 2027. The startersaftrek, the additional deduction for new entrepreneurs, is being reduced to 10 euros and will be entirely repealed in 2028. There will also be cuts to the business closing and helping partner deductions.

Since deductions are shrinking and nothing is replacing them, this plan will increase the taxable income of most self-employed persons.

Some changes work in your favor. If you use your car for business and keep a kilometer log, you can deduct 0.25 euros per business kilometer. And cars used for business will be considered youngtimers if they are at least 17 years old in 2027 and at least 20 years old in 2028.

Employers should also take note. The premium for the AOF, a disability fund, will increase, making staff more expensive. Small employers go from 6.27% to 6.67% and larger employers from 7.63% to 8.03%. These percentages sit outside the tax bill itself and are set separately. On the positive side, the EIA, a deduction for business investments in energy-saving equipment, will be increased to 45.5% of the investment.

If You Have Investments, Crypto, or Rental Property

If you are lucky enough to have investments, cryptocurrency, or rental properties, your taxes can get a little tricky.

For now, the government will continue to tax your estimated returns. A different system, in which the government would tax your actual returns, has been proposed, but the bill has stalled in the Senate, and the cabinet has pushed a decision on it to the spring of 2027. The original start date of 2028 now looks unlikely. Part of the delay stems from an unresolved question about whether investment gains should be taxed each year or only when you sell.

Regardless of which system is ultimately implemented, it’s important that you keep thorough records of your interest, dividends, rental income, costs, and asset values.

Buying a home you will not live in yourself? The transfer tax on those properties drops from 8% to 7% in 2027. The 2% rate for your own home and the exemption for young first-time buyers remain the same, and the rate for business property remains at 10.4%. For further information, see our guide to Dutch property taxes.

Tax Changes for Medical Costs

The government has proposed eliminating the deduction for medical costs not reimbursed by your health insurance. This deduction is expected to be eliminated starting in 2028. Until then, it can be claimed for things like certain medicines, medical aids, doctor-prescribed diets, and travel costs for treatment. It is one of several deductions many people overlook.

What to Consider Before 2027

There are a few reasons to look at your own situation as the end of the year approaches. You might want to review your plans if you:

• Are considering a large business expense, like a company car. The new rules may change what you can deduct.
• Have employees. You will need to increase your budget to account for the expected rise in employer costs.
• Are about to start a new business. It may be better to start in 2026, since the extra deduction for starters will be nearly gone by 2027.
• Are planning on buying a rental property. The transfer tax on the purchase may be 1% lower in 2027 than in 2026.
• Have savings, investments, or crypto in Box 3. Start keeping good records now.

Parliament votes on this legislation in the fall. We will give an update on the changes that make it through. To get that update and more, subscribe to our newsletter.