30% Ruling Becomes 27% in 2027: Your Last Year to Lock It In

If you are planning a move to the Netherlands, the calendar just became your most important tax planning tool. From 1 January 2027, the famous 30% ruling — the tax-free allowance that lets qualifying expats receive almost a third of their salary untaxed — shrinks to 27% for all new applications. Anyone whose Dutch employment starts in 2026 and who files on time still locks in the full 30% for the entire five-year term. That makes the second half of 2026 the last comfortable window to secure the bigger benefit.

What changes on 1 January 2027

• The tax-free allowance drops from 30% to 27% for rulings that start in 2027 or later.
• The salary threshold rises. To qualify in 2026 you need taxable pay of at least €48,013; from 2027 the bar moves up to roughly €50,436.
• Under-30s with a master's degree see their reduced threshold climb from €36,497 to about €38,388.
• The scheme is officially renamed the "Expat Scheme" (expatregeling) — though everyone in the Netherlands will keep calling it the 30% ruling, even when it pays 27%.

The change is the final step of a reform that started in 2024, when the ruling was briefly scheduled to be scaled down in 30/20/10 steps. That harsher phase-out was reversed, but the 27% compromise survived — and it arrives in January.

Who keeps the 30%?

The four-month application deadline is the detail that catches people out. File within four months of your first working day and the ruling applies retroactively from day one. Miss it, and the ruling only starts from the month after you finally apply — which for a December 2026 starter can mean falling into the 27% regime, or losing months of benefit altogether.

A quick reminder of who qualifies at all

The percentage is only half the test. To get the ruling in the first place you must be recruited from abroad (or transferred within a group), have lived more than 150 km from the Dutch border for at least 16 of the 24 months before your first working day, and bring specific expertise — which in practice is tested almost entirely through the salary threshold. The application is filed jointly with your employer, and since 2024 the tax-free allowance is also capped at the WNT norm (the "Balkenende norm", €246,000 in 2026): earnings above that ceiling no longer generate additional tax-free allowance. For the vast majority of arrivals the cap is irrelevant, but for senior executives it changes the arithmetic.

What it costs you in euros

The 30% ruling works by making 30% of your gross salary tax-free. Using the same calculation engine as our Dutch salary calculator, here is what the ruling is worth per month in 2026:

At 27% the benefit shrinks roughly proportionally — you keep about nine-tenths of the current advantage. That sounds small until you annualise it: for earners above €80,000 the difference between the 30% and 27% rate typically works out to €5,000–€10,000 per year in lost net income over the life of the ruling. Over a full five-year term, locking in 30% instead of 27% can be worth a mid-range car.

The deadline timeline

• Start working by August 2026 — a comfortable margin. You can file well inside the window and have the ruling confirmed before the year ends.
• The 4-month application window runs from your first working day, not from your contract signature or arrival date.
• Approval can arrive in 2027 — that is fine. What matters is when your employment started and when you filed. A ruling applied for in time is granted retroactively at 30%, even if the tax office processes it after New Year.

Also already gone: partial non-resident status

One sweetener quietly disappeared earlier: partial non-resident status was abolished on 1 January 2025. Under that regime, 30%-ruling holders could opt to be treated as non-residents for Box 2 (substantial shareholdings) and Box 3 (savings and investments) — meaning worldwide assets largely stayed outside Dutch tax. New arrivals now pay Dutch tax on worldwide income across all three boxes. A transitional rule keeps the old treatment alive for people who already held the ruling in 2023, but that grace period ends after 2026. If you hold significant investments, factor this into your net calculation alongside the headline percentage.

Frequently asked questions

Do I keep 30% if I start in December 2026?

Yes — if you file the application within four months of your first working day. The start date of your employment determines which regime applies, and a timely application is granted retroactively. A December start with a January filing is still safely inside the window; a December start with a May filing is not.

Does the 27% rate apply to existing rulings?

Not for everyone. If you started before January 2024, you are grandfathered at 30% for your full five-year term. If you started in 2024 or 2025, you keep 30% through the end of 2026 and switch to 27% from January 2027 for the remainder of your ruling.

Is the ruling still worth it at 27%?

Absolutely. Even at 27%, the Dutch expat scheme remains one of the most generous in Europe — comfortably ahead of comparable regimes in most neighbouring countries. A €7,000-per-month earner still takes home over €1,100 extra every month. The reform trims the benefit; it does not remove the reason to come.