Dutch Tax Budget 2027 – rates and tax credits

Corporate income tax rate structure

The corporate income tax rate structure will not change in 2027. The rate amounts to 19% on taxable amounts up to EUR 200,000 and 25.8% on the excess. See the table below.

Freedom contribution

The statutory inflation adjustment was to be 2.6% for the year 2026. However, as part of the so‑called freedom contribution only part of this adjustment (48%) will be applied in 2027. As a result, the adjustment applied will only be around 1.25%. Hence, the increases in respect of various bracket limits, allowances and tax credits for income tax purposes will be smaller. For businesses, the freedom contribution will take the form of an increase in the Invalidity Insurance Fund contribution (Aof-premie).

Income tax rate structure for Box 1

The combined income tax and national insurance contributions in Box 1 are levied according to a three-bracket system. In 2027, the rate in the first bracket will be increased by 0.48 percentage points, to 36.23%. In the second bracket, the rate will be 38.16% in 2027, i.e., an increase of 0.60 percentage points. At 49.50%, the top rate will not change in 2027. However, the income threshold for the third bracket will be frozen at EUR 78,426 in 2027.

For persons entitled to an old-age pension (AOW), the rate in the first bracket in 2027 amounts to 18.33%. In the second and third brackets, the rate is the same as that for other taxpayers. The table below summarises the changes.

Bracket limits

General rate table

Tax rate table for persons entitled to an old-age pension

Box 2 rate structure
A two-bracket system applies for Box 2. In 2027, Box 2 income of up to EUR 69,607 will be taxed at a rate of 24.5%. The top rate of 31% is due on the excess.

Rates of return, rate and tax-free wealth threshold for Box 3
In Box 3, equity is divided into three categories: cash and bank balances, other assets, and debts. The yield on other assets is determined on the basis of long-term average yields on securities, bonds, and property, and will amount to 6.37% in 2027. By contrast, because the yield on cash at banks and debts is based on current interest rates, it can only be finally determined after the tax year has ended. As a result, the percentages referred to for those categories in 2026 and 2027 are still provisional.

Return rates for the new calculation in respect of the three categories.

The Box 3 rate will remain at 36% in 2027. The tax-free wealth threshold will be EUR 60,098.

General tax credit
In 2027, the cap for the general tax credit will be increased to EUR 3,154 (2026: EUR 3,115). Since 2025, the phase-out point has been linked to the statutory minimum wage. Since then, the taxpayer’s total aggregate income has been taken into account as well, rather than just the Box 1 income. In 2027, based on current figures the general tax credit will be phased out from EUR 30,910 at a rate of 6.638%, until it reaches zero at a total aggregate income of EUR 78,426.

Employment credit
In 2027, the employment credit cap will be increased to EUR 5,929 - up from EUR 5,685. The employment credit will be phased out at a rate of 6.51%, from an income from employment of EUR 47,834 until it reaches zero at an income of EUR 138,909. The following table lists the changes in the general tax credit and the employment credit:

Income-related combination tax credit (ICTC)
In 2027, the ICTC cap will be reduced to EUR 2,918 and the required minimum income from employment will be increased to EUR 6,316. The accrual rate will not change (11.45%). In 2027, the ICTC cap will be reached at an income from employment of EUR 31,801.

Elderly person's tax credit and single elderly person's tax credit
The cap for the elderly person's tax credit will be reduced to EUR 1,993 in 2027. This is phased out at a rate of 15%, from an aggregate income of EUR 46,557. The single elderly person's tax credit, on the other hand, is a fixed amount and will amount to EUR 547 in 2027.

Young disabled person’s tax credit
The young disabled person’s tax credit will be increased to EUR 935 in 2027 (2026: EUR 923).