New tax laws in 2026

With the start of 2026, we have been faced with a number of changes in the tax rules. These changes may affect your finances, so it is important to review them carefully. This way, you won’t be caught by surprise.

Below we have listed the most important changes.

Changes to tax brackets

From January 1, the tax brackets and rates in Box 1 have changed.
Box 1 includes your income from work and housing.

The new structure:
Bracket 1: taxable income up to €38,883 – rate 35.75%
Bracket 2: taxable income from €38,883 to €78,426 – rate 37.56%
Bracket 3: taxable income from €78,426 – rate 49.50%

Tax rates for AOW pensioners
Bracket 1: taxable income up to €38,883 – rate 17.85%*
Bracket 2: taxable income from €38,883 to €78,426 – rate 37.56%
Bracket 3: taxable income from €78,426 – rate 49.50%

*For people born before January 1, 1946, the maximum taxable income in the first bracket is €41,123.

General tax credit (Algemene heffingskorting)

The maximum general tax credit for income tax increases to €3,115 in 2026.
Up to an income of €29,736, you can use the maximum tax credit. After this income threshold, the credit gradually decreases as income increases.
You will not receive the general tax credit if your income is higher than €78,426.

Labour tax credit (Arbeidskorting)

People with a job receive a labour tax credit. This year the maximum labour tax credit increases to €5,685. The amount depends on your income.
For incomes above €45,592, the labour tax credit is reduced more quickly.
You will not receive a labour tax credit if your income is higher than €132,920.

Income-dependent combination tax credit

The income-dependent combination tax credit increases to a maximum of €3,032 in 2026.

Deductions

In 2026, the rate at which deductions can be applied will be further reduced for incomes above €78,427. The maximum deduction rate will then be 37.56%.

Box 2

The tax rate for income in Box 2 in 2026 is:
Bracket 1: taxable income up to €68,843 – rate 24.50%
Bracket 2: taxable income from €68,844 – rate 31.00%

Adjustment to Box 3

In Box 3, the tax-free capital allowance in 2026 is €59,357 per person, or €118,714 for fiscal partners.

The planned increase of the notional return on investments and other assets from 5.88% to 7.78% has also been reversed. In 2026, this notional return will be 6%.