- Tax changes and smaller self-employed deductions could affect how much income residents keep in 2027.
- Healthcare costs are expected to rise, while support for healthcare, childcare and energy remains dependent on eligibility.
- Transport proposals include a higher tax-free mileage allowance and continued petrol and diesel duty relief.
- Box 3 reform remains unsettled, while transfer tax on investment homes is proposed to fall from 8% to 7%.
On September 15th, 2026, during Prinsjesdag, the Jetten cabinet presented the Dutch budget for 2027, including new measures for take-home pay, property transfer tax, a higher tax-free travel allowance, and a tax on fossil fuels, as well as VAT increases in some sectors.
Proposals communicated during Prinsjesdag still require parliamentary approval and are expected to take effect on January 1st, 2027, if they pass the parliamentary vote.
With several key changes from the Dutch 2026 budget going into 2027, we're reviewing the major ones that affect households and giving investors an overview of what to expect as 2027 approaches.
Dutch budget overview: the main changes at a glance
Not every measure below takes effect automatically on January 1, 2027. Some are backdated, some are phased over several years, and some still need to clear Parliament. Use this table as a starting point, not a final word.
Economic projections for 2027
The Dutch government's budget is based on projections that aim to keep inflation in check and reduce the budget deficit. The government expects inflation to average 2.7%, below the EU's projection of 3% in 2027, as high oil prices and global volatility are putting pressure on production and general expenses. At the same time, GDP growth is expected to hold at 1.2%, with the budget deficit rising to 2.7%
Before the budget announcement for 2027, independent voices like the CPB and the DNB highlighted that the budget changes lean too heavily on labor income, while lawmakers are neglecting corporate profits and wealth.
Budget changes to income and taxation
The 2027 income tax changes will hit household budgets most directly. The first tax band, covering income up to €39,200, rises from 35.75% to 36.23%, while the second bracket, covering income up to €78,400, increases from 37.56% to 38.16%.
In practice, the impact on take-home pay will vary. The labor tax credit is also set to increase in 2027, alongside projected wage growth of 3.8%. Higher rates, combined with a larger credit and rising wages, mean not everyone will see smaller paychecks, and the net effect depends on individual income levels, with employers absorbing some of the additional burden.
Self-employed workers face a more significant shift. The starter's deduction for new entrepreneurs drops to just €10 in 2027, then ends in 2028.
The government is also cushioning the impact more for pension and benefit recipients than for working households. While purchasing power declines marginally across most groups, pensioners and low-income households are largely protected from that dip.
Health and travel sector
In 2027, healthcare costs are rising, but not as sharply as expected. Own risk expenses will increase from €385 to €400, in line with inflation rather than the steeper €60 amount initially floated in earlier discussions.
The government also expects monthly premiums to rise by roughly €12.50, though insurers set their own rates independently. Separately, €100 million has been set aside to fund shingles vaccinations for people aged 60 to 69; those 70 and older will need to cover that cost themselves.
Travel costs are the other side of the household budget squeeze, and this budget touches several categories at once.
The tax-free travel allowance (reiskostenvergoeding) has already increased from €0.23 to €0.25 per kilometer, backdated to January 1, 2026. This applies whether you're an employee receiving mileage reimbursement or a self-employed professional deducting travel costs from your profit. This will not apply to company cars or bicycles.
At the pump, the reduced excise duty on petrol (€0.85 per liter) and diesel (€0.55 per liter) is proposed to be extended by a year, through January 1, 2028.
Starting January 1, 2027, employers pay an additional 12% tax on the list price of any non-electric company car made available for private use, including commuting. A transitional period protects cars already assigned to employees before that date, delaying the extra levy until 2031 for those vehicles.
Change for housing and household benefits
Several housing-related changes are included in the new budget. Low-income households can apply to a dedicated energy fund, while the overall housing budget rises substantially to €7 billion, with €940 million set aside to improve facilities and green spaces around residential developments.
Housing corporations will receive a tax break worth €425 million, which the government expects will unlock an additional €6 billion in borrowing capacity for social housing construction. Private investors building mid-market rental homes can claim up to €10,000 per unit, though this scheme draws from a €500 million pool running from 2029 to 2033, making it less relevant for 2027 planning.
From 2028, those earning too much to qualify for rent-controlled housing will face stricter checks on individual assets to prevent system manipulation. This is a later-stage measure and will not affect rent calculations in the upcoming year.
Budget changes for investors
This is where the 2027 budget offers its clearest signal to anyone holding savings, investments, or property beyond their own home.
For 2026, bank and savings balances are assumed to yield 1.28%, while investments and other assets, including shares, second homes, rental property, and cryptocurrency, are assumed to yield 6.00%. Deductible debts get a notional rate of 2.70%, all of which is taxed at a flat rate of 36% after a tax-free allowance of €59,357 per person.
The gap between 1.28% and 6.00% is the detail worth understanding. Two people with identical net worth can face very different Box 3 tax bills depending on how that wealth is distributed between cash savings and other assets, since the notional yield assumed for investments is more than four times higher than the one assumed for bank balances.
Nothing in this budget introduces a new or separate crypto tax. Cryptocurrency holdings have been treated this way for some time. But for property investors the bigger news is the real estate transfer tax. The rate for buying residential property (buy-to-let) is set to drop from 8% to 7% in 2027. This follows an earlier reduction from 10.4% to 8% that took effect on January 1, 2026.
The 2027 budget postpones decisions on Box 3 reform until spring 2027, including the treatment of unrealised “paper” gains—investment growth before assets are sold.
What happened to the asset tax reform in Box 3?
The expected Box three overhaul, which would tax fictional profits (or paper profits), isn't going through. After initially being discussed in early 2026, the overhaul remains stuck due to coalition disagreement over how to treat unrealized versus realized capital gains.
For now, the overhaul is set aside, and a new proposal is expected in spring of 2027, with potential implementation starting only from January 1st, 2028. However, the current bridging legislation continues to apply, using the notional return percentages for bank balances, investments, and debts described in the investors section above.
When are Prinsjesdag changes taking effect?
In the Prinsjesdag announcement, timing is seen as the most confusing part since laws and changes fall into four main categories:
- Already law or already in force. The higher tax-free travel allowance (backdated to January 1, 2026) and the extra tax on fossil-fuel company cars (effective January 1, 2027) fall into this group.
- Proposed for January 1, 2027, pending approval. This covers most of the Tax Package, including the income tax band increases and the property transfer tax cut. The House of Representatives votes on the Tax Package in November.
- Delayed to 2028 or later. The youngtimer age threshold's second step, the stricter rent-controlled housing checks, and the Box 3 reform all fall outside the 2027 window.
- Multi-year phased measures. The mid-market rental subsidy (2029–2033) and the accelerated civil service workforce reduction (through 2030) unfold over a longer horizon.
Dutch household checklist before the 2027 budget takes effect
- Review your gross income against the new tax bands rather than assuming the headline rate increase translates directly into lower take-home pay.
- Recalculate mileage reimbursements using the €0.25 per kilometer rate if you're an employer or self-employed professional, since this applies retroactively to 2026.
- Reassess your Box 3 asset mix with the notional return gap between bank balances and other assets in mind. This, however, is not investment advice.
- Time a residential property purchase carefully, since the transfer tax cut to 7% is proposed for 2027 but not yet finalized.
- Confirm your eligibility for the energy fund if rising bills are straining your budget.
About the authors
Written by
Vlad Hategan
SEO content writer
Writes the articles in the Yieldfund knowledge base.
Dutch, English, Romanian
Translated by
