30% Ruling Netherlands 2026: New Rules & 2027 Changes
The 30% ruling until last year was a fixed income tax break of 30% on an expat employee’s salary above a certain threshold amount (€ 48,013 in 2026). Although often considered a part of the salary, the 30% ruling is in fact a cost compensation scheme. The tax break is meant as compensation for expats’ so-called “extraterritorial costs”, a catch-all term for any cost associated with expats having to relocate to the Netherlands to pursue not only their careers but also their new livelihoods there.
Each year the 30% ruling minimum threshold gets adjusted for inflation. In 2026 the minimum annual salary is € 48,013. That means that in 2026 you will only be able to apply the 30% ruling to your salary above € 48,013. This means a full use of the 30% ruling can only be achieved if you divide the minimum amount by 0.7, so roughly € 69,000 per year. See below table for a clarification.
In 2026 the 30% ruling applicability will be capped to a salary maximum of €262,000 (the so-called "Balkenende norm"), even when the employee earns more than € 262,000. Of the salary amount below this amount, 30% is received tax free. Any part of the salary above this amount is taxed normally.
Changes going into 2027
The 30% ruling has always been under a lot of scrutiny, especially from domestic employees who receive the exact same salary but take home less because they pay full taxes on it. An amendment to the 30% ruling has therefore been announced: the 27% ruling. So no tiered scalebacks, but a flat rate of 27% for 5 years for qualifying incoming expat employees, except for the oldtimes from before 2024. They get to keep the full 30%. Additionally, the salary norm rises for new 30% rulings. The new norm is €50,436 at 2024 price levels (about €52,521 at 2026 levels), which will be indexed for inflation again in 2027. See below table for a clarification.
The new rules will take effect effective January 1st, 2027. Before then, everybody will have the full 30% tax break.
Partial non resident tax status
The partial non-resident tax status conferred by the original 30% ruling will remain scaled back. 30% ruling holders starting in 2024 will have their partial non-resident tax status revoked as of 2025 and further. A separate transitional arrangement applies here as well : 30% holders from before January 1st, 2024 will have their partial non-resident tax status revoked only as of 2027 and further. So 2026 is the last year of partial non-resident tax status for everybody. See below table for a clarification.
For more information on the 30% ruling in the Netherlands, check our FAQ page
