Budget Day 2026: Dutch tax proposals for 2027 explained

What is in the 2027 Dutch Tax Plan?

On 15 September 2026, the Dutch government presented the 2027 Tax Plan (Belastingplan 2027) to the House of Representatives. While Budget Day traditionally generates headlines about purchasing power projections, this package focuses on targeted fiscal adjustments and budgetary stability.

The headline proposals include:

• a targeted increase in the labour tax credit to make working more rewarding;
• a modest increase in the first two Box 1 income tax bracket rates (to 36.23% and 38.16%);
• an official pause on the new Box 3 system (the proposed wealth-accretion regime);
• a reduction in the property transfer tax for investors from 8% to 7%;
• tax incentives for innovation through a broader SME innovation box and relaxed employee stock option rules;
• increases in targeted consumption taxes, including a 10-cent per cubic metre rise in tap water tax.

These measures are proposals. The parliamentary debate in the House of Representatives and the Senate begins now and concludes in mid-December 2026.

Income tax: shifting brackets and tax credits

The government aims to stimulate labor participation by raising the maximum labour tax credit. At the same time, rates in the lower two brackets of Box 1 are being raised slightly to fund the broader purchasing power and budget package.

For taxpayers below the state pension age, the base rates change as follows:

Because the maximum labour tax credit increases, employees with average incomes will generally see a modest net improvement. However, non-working individuals and state pensioners without labour tax credits will experience the bracket increases directly, unless targeted allowances or the elderly tax credit compensate for the difference.

Box 3: the planned wealth reform put on hold

The most notable development in wealth taxation is the government's decision to hold the draft bill for the actual-return Box 3 system.

The draft legislation, which intended to introduce a wealth-accretion tax on unrealised gains for shares and investments from 1 January 2028, faced significant opposition from taxpayers, the Council of State, and the Senate. Taxing paper profits and the administrative complexity for the tax authority proved insurmountable hurdles.

The government has formally requested the Senate to suspend consideration of the bill. No amending bill will be submitted for now. Instead, the cabinet plans to reassess options around the Spring Memorandum 2027, with closer consideration given to a realized capital gains tax.

What does this mean for savers and investors?

In the short term, the calculation method remains steady:

• the current transitional regime remains the standard framework;
• the counter-evidence scheme following Supreme Court rulings remains essential for taxpayers whose actual return is below the deemed return;
• there is no immediate prospect of tax on unsold paper gains taking effect.

Property market and transfer tax

In real estate, the government is lowering the general property transfer tax rate for homes not used as a primary residence from 8% to 7%.

This rate applies to buy-to-let investors, second-home buyers, and parents purchasing a home for their children. In 2024, this rate was 10.4%, before being reduced to 8%. The further reduction to 7% is intended to support private rental supply and encourage new residential construction.

The first-time buyer exemption (0% under the statutory home value cap) and the 2% owner-occupier rate remain intact. In addition, housing associations receive an exemption from transfer tax when transferring social rental homes among themselves.

Entrepreneurs, SMEs and startups

For businesses and innovators, the 2027 Tax Plan combines continuity with targeted support:

• SME Innovation Box: The flat threshold increases from €25,000 to €100,000, allowing innovative smaller businesses to access the reduced 9% corporate tax rate with lower compliance costs.
• Employee Share Options: The tax regime for stock options in startups and scale-ups is relaxed, shifting the taxable moment clearly to when shares become tradeable and liquid.
• Self-employed deduction: The scheduled step-by-step reduction of the zelfstandigenaftrek continues toward the target level of €900.

Consumption and environmental levies

To help balance the budget, several targeted levies are being adjusted:

• tap water tax rises by 10 cents per cubic metre (from 43.7 to 53.7 cents per m³);
• the top band of the differentiated air passenger tax on long-haul flights is adjusted to protect the competitive position of Amsterdam Airport Schiphol;
• scheduled increases in the industrial carbon tax and waste tax are eased to prevent investment flight.

Next steps in Parliament

The 2027 Tax Plan is a starting point. During October and November 2026, the House of Representatives will debate the proposals and consider amendments. In December 2026, the Senate will vote on the final package.

Until legislation is adopted and published in the official bulletin (Staatsblad), figures and conditions remain subject to change. For 2026 tax estimates, Belastbaar uses enacted statutory rules. Once 2027 measures become final, we will incorporate them directly into our calculation engines.