What is the 30% ruling?
The 30% ruling (30%-regeling in Dutch) is a favourable tax facility offered by the Dutch Tax Authority (Belastingdienst) to highly skilled migrants recruited from abroad. When your employer pays you a tax-free allowance of up to 30% of your salary to compensate for the extra costs of relocating to and living in the Netherlands — known as "extraterritorial costs" — you end up paying income tax on a significantly smaller portion of your gross salary.
As a simplified illustration, if eligible annual remuneration is €80.000 and the employer applies the full 30% reimbursement, €56.000 remains taxable and €24.000 may be reimbursed tax free. Actual payroll treatment must also satisfy the salary condition and other ruling requirements.
Who qualifies for the 30% ruling in 2026?
To benefit from the 30% ruling in 2026, you must meet all of the following criteria:
- You are employed by a Dutch employer (or a Dutch permanent establishment of a foreign employer).
- You were recruited from abroad — meaning you lived outside the Netherlands before starting your Dutch job.
- You lived more than 150 km from the Dutch border for more than 16 of the 24 months before your first working day in the Netherlands.
- You possess specific expertise that is scarce in the Dutch labour market.
- Your taxable salary (after applying the ruling) meets the minimum threshold.
- Both you and your employer have applied for the ruling together, and it has been granted by the Belastingdienst.
Minimum salary threshold 2026
The taxable salary (i.e. the salary after deducting the 30% tax-free allowance) must be at least:
| Category | Minimum taxable salary | Approximate required gross salary |
|---|---|---|
| Standard (30 years or older) | €48.013 | approx. €68.590 |
| Under 30 with master's degree or PhD | €36.497 | approx. €52.138 |
These are the 2026 thresholds; they are updated annually for inflation. The gross salary required is higher than the taxable minimum when the maximum reimbursement is used. A higher salary norm applies from 2027 to rulings first used on or after 1 January 2025; its indexed 2027 amount is not included in this 2026 calculator.
The percentage: 30% now, 27% from 2027
There is a persistent myth that the ruling steps down from 30% to 20% to 10% across the five years. It does not. That schedule was introduced by the 2024 Tax Plan but repealed by the 2025 Tax Plan before it ever took effect, so no one has ever been paid on the 20% or 10% basis. Any calculator or article still applying it will understate your benefit substantially.
What actually applies:
| Period | Maximum tax-free percentage |
|---|---|
| 2025 and 2026 | 30% — flat, in every month of the ruling |
| 2027 onwards | Maximum 27% |
Salary cap: the Balkenendenorm
From 2024 onwards, the 30% tax-free allowance can only be applied to the portion of your salary up to the so-called Balkenendenorm — the public sector salary norm for senior officials. In 2026 this cap is €262.000 gross per year, which puts the maximum tax-free allowance at €78.600.
If your annual salary exceeds €262.000, the ruling still applies, but only on the first €262.000. Any amount above the cap is fully subject to Dutch income tax at the highest rate (49.50%).
For most expats this cap has no practical impact, since the vast majority earn below this threshold.
How to apply for the 30% ruling
The application must be submitted jointly by you and your Dutch employer to the Dutch Tax Authority (Belastingdienst). Here is the process step by step:
- Start your job in the Netherlands. Your employment contract with a Dutch employer is a prerequisite.
- Gather your documents. You will need your employment contract, proof of address outside the Netherlands (more than 16 of the last 24 months), degree certificates, and a copy of your passport.
- Submit the application together with your employer. Your employer files the request using the Belastingdienst's online portal or the relevant application form. Apply within 4 months of your first working day — late applications result in losing the benefit retroactively for those months.
- Receive the decision letter. The Belastingdienst says it will inform you within 8 weeks of receiving the request. The letter (beschikking) confirms the start date, end date, and conditions.
- Your employer applies the ruling in payroll. Once approved, your employer deducts 30% (or the applicable phase percentage) from your gross salary before calculating wage tax (loonbelasting). You do not need to do anything extra in your annual income tax return.
Dutch income tax brackets 2026
The calculator uses the following official 2026 income tax (box 1) rates:
| Tax bracket | Income range | Rate |
|---|---|---|
| Bracket 1 | €0 – €38.883 | 35,75% |
| Bracket 2 | €38.883 – €78.426 | 37,56% |
| Bracket 3 | Above €78.426 | 49,50% |
In addition, the general tax credit (algemene heffingskorting) and the labour credit (arbeidskorting) reduce the tax payable. Both credits phase out at higher incomes. The calculator applies both credits to arrive at the net tax figure.
Frequently asked questions
What is the 30% ruling in the Netherlands?
The 30% ruling (30%-regeling) is a Dutch tax incentive for highly skilled migrants recruited from abroad. It allows a portion of your salary to be paid as a tax-free allowance to cover the extra costs of living in the Netherlands ("extraterritorial costs").
The percentage is a flat 30% in 2025 and 2026, dropping to a maximum of 27% from 1 January 2027 (30% throughout if the ruling was already applied on or before 31 December 2023). The 30/20/10 step-down announced in 2024 was repealed before it took effect. After 60 months the ruling expires automatically.
Who qualifies for the 30% ruling in 2026?
To qualify you must: (1) be recruited from abroad by a Dutch employer, (2) have specific expertise that is scarce in the Dutch labour market, (3) meet the salary threshold (€48.013 taxable for most workers in 2026, or €36.497 for workers under 30 with a master's or higher), and (4) have lived more than 150 km from the Dutch border in more than 16 of the 24 months before starting your Dutch job.
What is the minimum salary for the 30% ruling in 2026?
In 2026 the taxable salary after applying the ruling must be at least €48.013 (standard) or €36.497 (workers under 30 with a master's degree or PhD). These are after-ruling minimums. Your gross salary must therefore be at least approximately €68.590 or €52.138 respectively.
What is the Balkenendenorm salary cap?
Since 2024 the 30% ruling is capped at the Balkenendenorm — the maximum public sector salary norm. In 2026 this is €262.000 gross per year, so the maximum tax-free allowance is €78.600. If you earn more, the ruling still applies but only on the first €262.000. Above this cap your salary is fully taxable.
For most expats this cap has no practical effect, as the vast majority earn below €262.000.
Is there a 30/20/10 step-down?
No. A step-down of 30% → 20% → 10% across the five years was legislated in the 2024 Tax Plan, but it was repealed in the 2025 Tax Plan before it ever applied to anyone. It is not part of Dutch law, and sources still describing it as current are out of date.
The percentage is a flat 30% in every month of 2025 and 2026. From 1 January 2027 the maximum becomes 27%.
Whether that drop hits you depends on when the ruling was first applied to your salary: on or before 31 December 2023 means you keep 30% for your full remaining duration; in 2024 means 27% from 2027 on the current salary norm; in 2025 or later means 27% from 2027 with an announced higher salary norm as well.
How long does the 30% ruling last?
The maximum duration is 5 years (60 months). Any periods you previously worked in the Netherlands under the same or a related employer may shorten the available duration. The clock starts from the first working day on your Dutch employment contract, not from the date the ruling is approved.
Can I lose the 30% ruling before 5 years?
Yes. The ruling ends early if:
- Your employment ends and you do not find a new qualifying employer within 3 months.
- Your salary drops below the minimum threshold.
- You permanently leave the Netherlands.
Switching employers is allowed without losing the ruling, provided your new employer submits a new application and there is no gap longer than 3 months between jobs.
Do I need to apply for the 30% ruling myself?
No. The ruling must be applied for jointly by you and your employer. Your employer submits the request to the Belastingdienst. It is important to apply within 4 months of your first working day in the Netherlands — applications submitted later result in losing the benefit for the months prior to the application date.
Once approved, your employer processes the tax-free allowance directly in payroll. You do not need to claim anything extra in your annual income tax return.