The Dutch 30% Ruling: The 2026 Guide to a Massive Tax-Free Salary
Start here if you have a job offer in the Netherlands and want to understand the single most famous expat perk in all of Europe. Imagine this: your new employer pays you 30% of your gross salary, completely tax-free, for five years. This is the Dutch 30% Ruling, and it is the key to unlocking an incredible net income and a high quality of life in the Netherlands.
This is not just an article; it is your ultimate 2026 pillar guide to this powerful tax break. We will do a deep dive into the *exact* 2026 requirements, the “150km” rule, the salary thresholds, and the recent, highly controversial 2024/2025 tapering plan that all new applicants must understand.
This comprehensive guide will be your single source of truth for the 30% ruling. We will cover:
- What is the 30% Ruling? A simple breakdown with clear salary examples (before and after).
- The 3 “Gatekeeper” Requirements: A deep dive into the “Hired from Abroad,” “150km Rule,” and “Specific Expertise” (salary) tests.
- The 2024/2025 “Sobriety Act”: A full explanation of the *new* tapering rule (30/20/10 model) and the “Balkenende Norm” salary cap.
- The “Hidden” Benefits: Why the 30% ruling is about more than money (like the free driver’s license swap).
- A Step-by-Step Application Guide: How your employer applies for you and what you need to provide.
By the end of this guide, you will know if you qualify, how much you can save, and how to ensure your new employer applies for it correctly.
What is the Dutch 30% Ruling? (And How Does It Work?)
The 30% ruling (30% regeling) is a tax advantage for skilled migrants moving to the Netherlands to work. It is designed to compensate for the “extraterritorial costs” (ET costs) you might have, such as travel, housing, and higher living expenses.
Instead of having you save receipts for all these costs, the government created a simple, flat-rate solution: your employer can pay you 30% of your gross salary as a tax-free allowance.
In practice, this means your taxable income is reduced to 70% of your gross salary. This is a *massive* benefit, as the Netherlands has a high progressive income tax rate (up to 49.5%).
Salary Example: The Power of the 30% Ruling
Let’s look at a typical senior developer’s salary in Amsterdam: €80,000 per year.
| Metric | Without 30% Ruling | With 30% Ruling |
|---|---|---|
| Gross Annual Salary | €80,000 | €80,000 |
| Tax-Free Allowance (30%) | €0 | €24,000 (30% of 80k) |
| Taxable Income | €80,000 | €56,000 (70% of 80k) |
| Estimated Annual Income Tax | ~€30,500 | ~€20,100 |
| Estimated Net Annual Income | ~€49,500 | ~€59,900 |
| EXTRA Take-Home Pay | + €10,400 per year (or +€866 per month) | |
As you can see, the 30% ruling puts over €10,000 extra into your pocket every year. This is a life-changing amount of money.
The 3 “Gatekeeper” Requirements: Who Qualifies in 2026?
You cannot get the 30% ruling just by having a job. You must be “recruited from abroad” and possess “specific expertise.” The `Belastingdienst` (Dutch Tax Office) uses three clear tests to determine this.
1. Hired from Abroad
You must be recruited or transferred from *outside* the Netherlands. You cannot live in the Netherlands, find a job, and then apply.
2. The “150km Rule” (The Most Important Hurdle)
This is the strictest test. For 16 of the 24 months *before* your first day of work in the Netherlands, you must have lived more than 150 kilometers from the Dutch border.
This rule is designed to prevent people from Belgium, Luxembourg, and parts of Germany and France (“border-hoppers”) from claiming the benefit. If you are moving from anywhere else in the world (e.g., US, India, UK, Nigeria, Australia), you easily meet this requirement.
3. “Specific Expertise” (The Salary Test)
The Dutch government doesn’t judge your “skills”; it judges your *salary*. The logic is that if a company is willing to pay you a high salary, you must have specific expertise.
Your taxable income (the 70% part) must meet a minimum threshold. This means your *gross salary* must be even higher.
Here are the (estimated) 2026 minimum gross salary thresholds (before the 30% is applied):
- Standard Threshold: Your gross annual salary must be at least ~€66,000. (This ensures your 70% taxable part is above the ~€46,107 threshold).
- “Under 30” with Master’s Degree: If you are under 30 *and* have a Master’s degree, the threshold is much lower. Your gross annual salary must only be at least ~€50,300. (This ensures your 70% taxable part is above the ~€35,119 threshold).
Note: There is no salary threshold for scientific researchers or doctors in training.
The “Big Change”: The 2024/2025 Tapering Plan & Salary Cap
This is the most critical update for any new arrival in 2026. After years of political debate, the Dutch government passed the “Sobriety in the 30% Ruling Act” (Wet versobering 30%-regeling).
The 5-year duration is no longer a flat 30%. For all new applications, the benefit is “tapered” (reduced) over time.
Here is the new model for your 5-year (60-month) term:
- Months 1 – 20: You get the full 30% tax-free allowance.
- Months 21 – 40: The allowance is reduced to 20% tax-free.
- Months 41 – 60: The allowance is reduced to 10% tax-free.
This means you still get the massive 30% benefit for the first 1 year and 8 months, but the total value over the 5 years is reduced.
The “Balkenende Norm” Salary Cap
There is a second change. As of 2024, the 30% ruling can only be applied to a maximum salary. This cap is known as the “Balkenende Norm” (the prime minister’s salary). For 2026, this is estimated to be around €240,000.
This only affects very high earners. If your salary is €300,000, you can only apply the 30% ruling to the first €240,000.
Is the 30% Ruling Still Worth It in 2026?
Yes, 100%. A tapered benefit is infinitely better than no benefit. The first 20 months at 30% tax-free still provide a massive financial cushion while you are settling in, and the 20% and 10% tiers are still a significant tax break. It remains one of the best expat incentives in the world.
The “Hidden” Benefits: It’s Not Just About Money
The 30% ruling comes with two other *fantastic* perks that are often overlooked.
1. The Free Driver’s License Swap (The Best Perk)
This is arguably as valuable as the money. Normally, a non-EU expat must take the full, notoriously difficult (and expensive) Dutch driving theory and practical test to get a Dutch license. This can cost €2,000 – €3,000 and take months.
If you have the 30% ruling, you (and your spouse) can simply walk into your city hall and swap your valid foreign driver’s license for a Dutch one. No tests, no questions. This saves a *massive* amount of time and money.
2. Partial Non-Resident Tax Status (For Investors)
This is for people with significant savings or investments. If you have the 30% ruling, you can opt for “partial non-resident” tax status. This means you are exempt from the Dutch “Box 3” wealth tax.
The Box 3 tax is a “tax on wealth,” where the government taxes your assumed return on your worldwide assets (savings, stocks, second homes) above a certain threshold (~€57,000). By opting for partial non-residency, you only pay this tax on your Dutch real estate, not on your global assets. This is a huge benefit for high-net-worth individuals.
How to Apply (A Step-by-Step Guide)
The application process is simple, but it has one key rule: Your employer must apply for you. You cannot apply for yourself.
- Step 1: The Agreement: You and your employer must agree in writing that you will receive the 30% ruling. This is usually a clause in your employment contract.
- Step 2: The Application: Your employer (or their payroll administrator) submits a joint application to the `Belastingdienst` (Tax Office).
- Step 3: Provide Your Documents: You will need to provide:
- Your contract.
- Proof of residence *before* you moved (e.g., utility bills, rental contract) to prove you meet the 150km rule.
- Your BSN (Dutch social security number).
- Step 4: The Decision (Beslissing): The `Belastingdienst` will review the application and send an official approval letter (beschikking) to both you and your employer. This can take 6-10 weeks.
CRITICAL TIMELINE: The application must be submitted within 4 months of your first day of work. If it is, the ruling is applied retroactively to Day 1. If you apply *after* 4 months, it only applies from the month *after* the application, and you lose out on the retroactive pay.
Frequently Asked Questions (FAQ)
- 1. What happens if I change jobs? Can I take the 30% ruling with me?
- Yes, you can, but you must act fast. You must find a new job that *also* meets the salary requirements, and your new employer must agree to apply. The time between ending your old job and starting your new one cannot be more than 3 months. If you wait longer, you lose the ruling forever.
- 2. Does the 30% ruling stack with the Highly-Skilled Migrant (HSM) visa?
- Yes. They are a perfect pair. The HSM is your visa (from the `IND`). The 30% Ruling is your tax break (from the `Belastingdienst`). Almost all expats on an HSM visa also have the 30% ruling. The salary you need for your HSM visa (e.g., ~€4,180/month) is almost always high enough to also qualify you for the 30% ruling (e.g., the ~€50,300/year threshold).
- 3. I’m a recent graduate. Can I get the 30% ruling?
- Yes, if you meet the criteria! If you are under 30 with a Master’s degree, you only need to meet the lower salary threshold of ~€50,300. This is a huge benefit for hiring talented graduates. If you are on the “Orientation Year” (`Zoekjaar`) visa, the 150km rule is waived, but you *still* must meet the salary threshold.
- 4. My employer doesn’t know what the 30% ruling is. What do I do?
- This is a major red flag. It likely means they are not a “Recognized Sponsor” and are not experienced in hiring expats. A professional Dutch company, especially in tech or engineering, will absolutely know what this is. If they don’t, it is your responsibility to educate them and push them to apply for you, or to find a different employer.
Conclusion: Your Next Step to a Tax-Advantaged Salary
The 30% ruling remains one of the most powerful financial incentives for expats in the world, even with the new 2024/2025 tapering rules. The benefit, especially in the first 20 months, provides a massive boost to your net income, allowing you to save, travel, and settle into your new life with far less financial stress. The hidden perks, like the driver’s license swap, make it an essential part of your move.
Your journey starts at the negotiation table. The 30% ruling is not automatic. It must be agreed upon with your employer.
Your first step is to ensure this clause is in your contract: “The Employee is hired from abroad and the Employer will apply for the 30% ruling on the Employee’s behalf, provided the Employee meets the legal requirements.”
Your second step is to start gathering your old rental agreements or utility bills from 2 years ago. You will need them to prove you meet the 150km rule. This preparation will ensure you get your “€10,000-a-year” bonus.