The 30% ruling (30%-regeling) has long been one of the most attractive fiscal benefits for international workers relocating to the Netherlands. For decades, qualifying expats could receive up to 30% of their gross salary as a tax-free allowance, ostensibly to cover the extra costs of living abroad (extraterritoriale kosten). It was, in practice, a massive tax break that made Dutch job offers significantly more appealing to skilled foreign workers.
But the ruling has undergone major changes in recent years, and 2026 brings further adjustments that every expat — whether newly arrived or already benefiting — needs to understand. In this guide, we break down the current rules, explain what has changed, and show you exactly how the new structure affects your take-home pay.
The Original 30% Ruling: A Quick Recap
Under the original system, an employee recruited from abroad (or a Dutch national returning after a long absence) who met certain conditions could receive 30% of their total employment income as a tax-free reimbursement. This meant that only 70% of your salary was subject to Dutch income tax (inkomstenbelasting). The benefit lasted for up to five years (reduced from eight years in 2019).
For someone earning €80,000, this meant roughly €24,000 per year was tax-free — a saving of thousands of euros annually compared to a worker on the same salary without the ruling. You can see the exact difference by running scenarios in our 30% ruling calculator.
What Changed: The Phased Reduction
Starting from January 2024, the government introduced a phased reduction of the ruling. Instead of a flat 30% for the entire five-year duration, the benefit now follows a stepped structure:
- Months 1–20 (first 20 months): 30% of salary is tax-free
- Months 21–40 (next 20 months): 20% of salary is tax-free
- Months 41–60 (final 20 months): 10% of salary is tax-free
This 30/20/10 structure (sometimes written as 27/10 in shorthand, referring to the average effective rate) represents a significant reduction in the overall benefit. Over five years, the average tax-free percentage drops from 30% to roughly 20%. For a worker earning €80,000 gross, this translates to approximately €5,000 to €7,000 less in tax savings over the full period compared to the old flat-rate system.
There are transitional rules for workers who were already benefiting before 2024. If your ruling was granted before 1 January 2024, you may be entitled to the full 30% for the remainder of your five-year period, depending on when you started. The exact transitional provisions depend on your start date and the specific terms of your ruling decision (beschikking).
Eligibility Requirements in 2026
The core eligibility requirements remain broadly the same, though there are important nuances:
- Recruitment from abroad: You must have been recruited or transferred from outside the Netherlands. You must have lived more than 150 kilometres from the Dutch border for at least 16 of the 24 months before your Dutch employment started.
- Salary threshold: Your taxable salary (before the 30% deduction) must meet the minimum threshold. For 2026, this is approximately €46,107 for most workers, or €35,048 for employees under 30 who hold a qualifying master's degree from an accredited institution.
- Specific expertise: You must possess skills or knowledge that is scarce or not sufficiently available on the Dutch labour market. While this is not always strictly tested, it underpins the legal basis for the ruling.
To see how the salary threshold interacts with your total compensation, including holiday allowance, use our salary calculator alongside the holiday allowance calculator.
How the 30% Ruling Affects Your Complete Tax Picture
The 30% ruling does not just reduce your income tax. It has several knock-on effects:
- Box 3 partial non-resident status: Beneficiaries can opt for partial non-resident taxpayer status, meaning you are only taxed on Dutch-source income in Boxes 2 and 3. Foreign bank accounts, investments, and property are excluded from Dutch wealth tax. This is a significant benefit that persists under the new rules.
- Social security contributions: The ruling affects the income base for social security (volksverzekeringen). Use our social security calculator to see the impact.
- Pension accrual: Some employers adjust pension contributions based on the 30%-eligible salary, which can affect your long-term retirement savings.
Should You Still Come to the Netherlands?
Absolutely. Even with the reduced ruling, the Netherlands remains one of the most tax-competitive destinations in Europe for skilled international workers. The combination of the (reduced) 30% ruling, partial non-resident status, strong labour rights, and high quality of life still makes it an attractive proposition.
The key is to go in with realistic expectations. Model your take-home pay accurately using our 30% ruling calculator and compare it with offers from other countries using the salary comparison tool. The numbers may be lower than they would have been five years ago, but they are still very competitive.
Key Takeaways
- The 30% ruling now follows a 30/20/10 stepped structure over five years, reducing the average benefit.
- Transitional rules protect workers who started before 2024, but the details depend on your specific start date.
- Salary thresholds for 2026 are approximately €46,107 (general) or €35,048 (under-30 with master's degree).
- Partial non-resident status remains a valuable additional benefit for expats with overseas assets.
- The Netherlands is still an excellent destination for international talent — just model your numbers carefully before making decisions.
Use the 30% ruling calculator to see exactly what the new rules mean for your take-home pay in 2026.