How the 30% Ruling Works in 2026
A complete guide to the Dutch 30% ruling — who qualifies, how it works, salary thresholds, and the upcoming 2027 change to 27%.
What Is the 30% Ruling?
The 30% ruling (30%-regeling) is a Dutch tax advantage for highly skilled migrants recruited from abroad. It allows employers to pay up to 30% of the employee's gross salary tax-free, as a reimbursement for extraterritorial costs — the additional expenses of living outside your home country.
In practice, this means the employer only has to withhold Dutch income tax on 70% of the employee's salary, resulting in a significantly higher net income.
Eligibility Requirements
To qualify for the 30% ruling, you must meet all of the following criteria as of 2026:
- Recruited from abroad — You must have been hired or transferred from outside the Netherlands, or have been residing more than 150 km from the Dutch border for at least 16 of the 24 months before your first working day in the Netherlands.
- Specific expertise — You must possess skills or experience that are scarce or unavailable in the Dutch labor market.
- Minimum salary threshold — Your taxable income (after the 30% deduction) must meet the minimum threshold:
- Standard: €48,013 (2026)
- Under 30 with a Master's degree: €36,497 (2026)
- Employer agreement — Both you and your employer must apply jointly for the ruling with the Belastingdienst.
For a detailed walkthrough of each requirement, see our 30% Ruling Eligibility & Salary Threshold guide.
How the 30% Ruling Works
Here's a simplified example of how the ruling affects your tax calculation:
| Item | Without 30% Ruling | With 30% Ruling |
|---|---|---|
| Gross Annual Salary | €80,000 | €80,000 |
| Tax-Free Allowance (30%) | €0 | €24,000 |
| Taxable Income | €80,000 | €56,000 |
| Estimated Annual Tax | ~€24,800 | ~€14,300 |
| Annual Savings | — | ~€10,500 |
The tax-free allowance is calculated on the lower of your gross salary or the WNT salary cap (€262,000 in 2026). Income above this cap is fully taxable.
Your taxable income is then subject to the Dutch progressive tax brackets, after which tax credits (heffingskortingen) are applied to determine the final amount of tax you owe.
Salary Threshold 2026
The Belastingdienst adjusts salary thresholds annually for inflation. For the 2026 tax year:
| Category | 2025 Threshold | 2026 Threshold |
|---|---|---|
| Standard minimum taxable salary | €46,660 | €48,013 |
| Under 30 with Master's degree | €35,468 | €36,497 |
2027 Transition to 27%
Starting January 1, 2027, the Dutch government is reducing the tax-free percentage from 30% to 27%. Here's who is affected:
- Started before 2024: You are grandfathered at 30% for the full 5-year duration.
- Started 2024–2026: You receive 30% until December 31, 2026. From 2027 onward, you get 27%.
- Starting 2027 or later: You will only ever receive 27%.
Use our 30% Ruling Calculator to compare your net income under 30% vs. 27% scenarios.
WNT Salary Cap
The 30% tax-free allowance is capped at the WNT norm (Wet normering topinkomens). In 2026, this cap is €262,000.
If your gross salary exceeds €262,000, only €262,000 is eligible for the 30% deduction. The remaining income above the cap is fully taxable at regular rates.
Example: On a €300,000 salary, the tax-free allowance is 30% × €262,000 = €78,600. The remaining €38,000 (€300,000 – €262,000) plus the €183,400 taxable portion (€262,000 – €78,600) are both fully taxable.
How to Apply
The 30% ruling application is a joint process between you and your employer:
- Within 4 months of starting work — File a joint application with the Belastingdienst. Late applications may result in a retroactive start date being denied.
- Required documents:
- Completed application form (available at belastingdienst.nl)
- Employment contract showing your gross salary
- Proof of 150 km border distance (e.g., previous address registration)
- For young researchers: proof of Master's degree
- Processing time: Typically 2–4 months. Your employer can provisionally apply the 30% deduction from your first paycheck.
- Duration: Maximum 5 years. Previous periods of residence in the Netherlands may reduce this duration.
Frequently Asked Questions
Can I switch employers and keep the 30% ruling?
Yes, but you must apply again with your new employer within 3 months of leaving your previous position. The ruling's end date remains the same — it does not restart.
Does the 30% ruling affect my pension contributions?
The 30% ruling is applied to your gross salary for income tax purposes-pension fund contributions are typically based on the full gross salary. Consult your employer's HR department for specific pension arrangements.
Can I get the 30% ruling as a freelancer?
No. The 30% ruling is only available to employees. Freelancers and self-employed individuals (zzp'ers) are not eligible. However, if you work through a payroll company or BV structure, you may qualify.
What happens if my salary drops below the threshold?
If your taxable salary falls below the minimum threshold for an entire year, you risk losing the ruling for that year. Part-time employment or unpaid leave can sometimes cause this — discuss with your employer and tax advisor.
Is the 30% ruling applied before or after social security premiums?
Social security premiums (included in the Box 1 first bracket rate) are calculated on your taxable income after the 30% deduction, not on your full gross salary.