30% Ruling Salary Thresholds Announced
What Employers & Expats Need to Know
Starting January 1, 2026, the Dutch Tax Authorities will raise the minimum taxable salary required to qualify for the 30% ruling. These changes will impact expats and their employers, making it essential to understand how eligibility is affected going into the new year.
What’s Changing in 2026?
- Standard salary threshold: Increased to €48,013, up from €46,660 in 2025.
- Young professionals (<30 with a Master’s degree): New threshold set at €36,497, up from €35,468 in 2025.
- Income cap (WNT limit): Raised to €262,000 per year; any income above this is fully taxed.
Why It Matters
The 30% ruling provides a tax-free allowance on 30% of an expat's salary, making it a valuable tool for attracting and retaining international talent. Since the lower taxable salary must meet the threshold after applying the 30% allowance, employers need to plan carefully:
If year-end taxable salary dips even slightly below the threshold, employees may lose the ruling retroactively. [executivem...-group.com]
Lowers surprises for both new hires and current staff, especially during contract renewals or promotions.
Planning Ahead
Employers should review compensation packages now to ensure compliance with the new thresholds. Recruitment offers for international hires must factor in the higher salary norms, and existing employees should have their taxable salary levels checked to avoid disqualification. Budget adjustments may also be necessary to account for potential payroll tax increases if salaries fall short.
Looking Beyond 2026
From January 1, 2027, two significant changes will occur:
1. The tax-free allowance will be permanently reduced to 27%.
2. Salary thresholds are expected to increase again—provisional figures suggest around €50,436 for standard employees and €38,388 for those under 30 with a Master's degree.
Key Takeaways
- Employers must adjust compensation and compliance plans well before 2026 starts.
- Employees should confirm taxable salary levels to avoid disqualification.
- Industries reliant on expat talent must adapt now to maintain competitiveness and benefit from the 30% ruling.