30% Ruling Calculator 2026

What Is the 30% Ruling?

The 30% ruling (30%-regeling in Dutch) is one of the most valuable tax benefits available to international professionals coming to work in the Netherlands. If you have been recruited from abroad by a Dutch employer, up to 30% of your gross salary can be paid to you tax-free. This tax-free portion is meant to compensate for extraterritorial costs -- the additional expenses you face because you are living and working in a country other than your home country.

These extraterritorial costs include things like double housing expenses (you might still maintain a home in your country of origin), relocation and shipping costs, costs for obtaining officially translated documents, language courses to learn Dutch, and the generally higher cost of living you experience during your first years in a new country. Instead of requiring you to document and prove each expense individually, the 30% ruling offers a flat-rate reimbursement.

The practical result is significant: you only pay Dutch income tax on 70% of your gross income. On a salary of €80,000 per year, this saves you roughly €600 net per month in the first year compared to a colleague without the ruling. Over the full five-year duration, the total benefit can amount to tens of thousands of euros.

The Step-Down Schedule: 30/20/10% in 2026

Since January 1, 2024, the Netherlands has introduced a step-down schedule for the 30% ruling. Unlike the previous system where you received a flat 30% tax-free throughout the full five-year period, the current structure works as follows:

This means your tax benefit gradually decreases over time. You benefit the most during the first two years, and then the advantage steps down progressively. Our calculator above shows exactly what this means for your specific salary, including a complete projection across all five years.

Who Qualifies? Eligibility Requirements and Salary Thresholds

Not everyone who moves to the Netherlands from abroad automatically qualifies for the 30% ruling. You need to meet several strict conditions:

1. Recruited from Abroad

You must have been specifically recruited or hired by a Dutch employer while you were living abroad. This requires an active recruitment action: your employer approached you, or you responded to a job posting from outside the Netherlands. If you moved to the Netherlands independently and then started looking for work, you generally do not qualify.

2. Distance Requirement: 150 Kilometers

You must have lived at least 150 kilometers from the Dutch border for at least 16 out of the 24 months before your first working day in the Netherlands. If you lived in Belgium or just across the German border, you likely do not meet this requirement. Coming from the United Kingdom, France, Spain, India, or the United States? The distance requirement is not an issue.

3. Specific Expertise

You must possess knowledge or skills that are scarce on the Dutch labor market. In practice, this is demonstrated by meeting the salary threshold. In 2026, the following thresholds apply to the taxable salary (after the 30% deduction):

• General (age 30 and over): minimum €48,013 taxable, which translates to approximately €68,590 gross
• Under 30 with a recognized master's degree: minimum €36,497 taxable, or approximately €52,139 gross
• Scientific researchers: no salary threshold. This applies to researchers at universities, academic hospitals, and certain research institutions

The Balkenende Cap: Maximum Salary for the Ruling

The 30% ruling has an upper limit known as the Balkenende cap, officially called the WNT norm. In 2026, this cap is set at €262,000 per year. This means the maximum tax-free allowance is €78,600 (30% of €262,000) during years 1-2. Any salary above €262,000 is fully taxed at the regular Dutch income tax rate.

For most expats in the Netherlands, the Balkenende cap is not a limiting factor: the average expat salary falls well below this ceiling. However, for senior managers, partners at consultancies, and specialists in the financial sector, this cap can be significant. Use the calculator above to see exactly how it affects your specific salary level.

Partial Non-Resident Taxpayer Status: Expires December 31, 2026

An important secondary benefit of the 30% ruling has been the option to choose partial non-resident taxpayer status (partieel buitenlandse belastingplicht). This allowed you to be treated as a non-resident taxpayer for Box 2 (substantial interest) and Box 3 (savings and investments), meaning no Dutch wealth tax on assets held outside the Netherlands.

Important: this option definitively expires on December 31, 2026. From January 1, 2027, all 30% ruling holders will be treated as fully resident taxpayers for all three tax boxes. This can have significant consequences if you hold assets in your home country, such as property, investment portfolios, or bank accounts. Consult a tax advisor well in advance to assess the impact and plan accordingly.

2027 Reform: From 30% to a Flat 27%

The Dutch government has announced a reform of the 30% ruling effective January 1, 2027. The most important change: new applications will receive a flat rate of 27% for the full five-year duration, without any step-down. While this is simpler, it is less favorable than the current 30% rate during the first two years.

Grandfather clause: if you started your 30% ruling in 2024, 2025, or 2026, you keep the existing step-down schedule of 30/20/10%. You will not be affected by the change to 27%. This makes it particularly attractive to apply for the ruling before 2027 if you are planning to move to the Netherlands.

Example: on a gross annual salary of €80,000, the current 30% schedule provides an annual net benefit of approximately €7,200 in years 1-2. Under the new 27% scheme, this would be approximately €6,500. Over five years, the difference can amount to several thousand euros, depending on your salary level.

How to Apply for the 30% Ruling

The application for the 30% ruling is filed jointly by you and your employer with the Dutch Tax Authority (Belastingdienst). Here are the steps:

1. Employment contract: you need a signed employment contract with a Netherlands-based employer.
2. Joint application: you and your employer submit the "Request for payroll tax, 30% facility" form to the Belastingdienst. This can be done digitally through the Tax Authority's portal.
3. Within four months: the application should be filed within four months of your first working day in the Netherlands. If filed later, the ruling takes effect from the first day of the month after approval, rather than retroactively.
4. Assessment: the Belastingdienst evaluates whether you meet all requirements. This typically takes 4-8 weeks.
5. Decision: once approved, you receive a decision letter (beschikking). Your employer can then process the 30% allowance in payroll administration.

Practical Tips for Expats with the 30% Ruling

If you have or are about to apply for the 30% ruling, here are important practical considerations:

• Driver's license exchange: with the 30% ruling, you can more easily exchange your foreign driver's license for a Dutch one, without theory and practical exams (provided your country is on the recognized list).
• Tax filing: despite the 30% ruling, you still need to file an annual tax return (belastingaangifte). The tax form includes a specific section for the 30% ruling.
• Mortgage: Dutch banks typically account for the temporary nature of the 30% ruling when assessing mortgage applications. They often calculate your borrowing capacity based on your salary without the ruling.
• Pension accrual: the 30% ruling can affect your pension accrual, as some pension schemes base contributions on taxable salary rather than gross salary.
• Switching employers: if you change jobs, you can continue the ruling with your new employer, but you must start the new position within three months of leaving the previous one. A new joint application with the new employer is required.

Salary Comparison: With vs. Without the 30% Ruling

To put the benefit of the 30% ruling in perspective, here is a comparison at common salary levels in 2026 (year 1 of the ruling, including holiday allowance):

These figures are approximate. Use our calculator above for an exact calculation based on your specific salary.

Frequently Asked Questions

Sources and Further Reading

The information on this page is based on the following official sources:

• Belastingdienst: The 30% facility
• Business.gov.nl: 30% ruling for incoming employees
• Government of the Netherlands

Have specific questions about your situation? Always consult a specialized tax advisor. The information on this page is indicative and does not replace personal advice.