Dutch expat ruling falls from 30% to 27% in 2027: who is affected and how to compare net salary

Effective date: 1 January 2027 and enacted status

The Dutch expat ruling, commonly called the 30% ruling, allows an employer to provide part of an eligible employee’s remuneration as a tax-free allowance for qualifying costs associated with working in the Netherlands. From 1 January 2027, the maximum allowance for the affected arrangements falls to 27%. The change is enacted and should therefore be treated as a confirmed rule for planning purposes, rather than as a proposal that may still disappear.

The 27% maximum is not the same as an automatic 3% reduction in take-home pay. The actual result depends on the employee’s gross remuneration, whether the employer keeps total remuneration constant, whether the package is renegotiated, how much time remains on the individual ruling decision and whether other taxable benefits or pension arrangements change. A candidate comparing offers should therefore request a written 2026 and 2027 payslip simulation from the employer.

For a general overview of Dutch take-home pay, use the related calculator as a starting point. It can help illustrate ordinary gross-to-net mechanics, but the employer or payroll provider must confirm how the expat ruling is applied to a specific employment contract.

Transition table: first application by 31 December 2023, during 2024, from 1 January 2025

The transition rules are based on when the expat ruling was first applied, not simply on the employee’s nationality or the date of a later salary review. The precise Rijksoverheid transition table distinguishes three groups. This matters because some earlier users retain protection for the salary standard that applied to their cohort, while the maximum percentage is still subject to the applicable 2027 change.

This table should be read together with the individual decision issued for the employee. It does not create a new eligibility period, and it does not guarantee that an employee can use the maximum percentage against every form of remuneration. The employer must continue to satisfy the relevant conditions and administer the allowance through payroll.

For background on taxable salary, payroll deductions and Dutch income-tax mechanics, read the Dutch salary and tax system guide. It is useful when checking whether a quoted net amount reflects only the expat ruling or also includes payroll credits, pension deductions and other assumptions.

Why maximum five-year duration is not restarted in 2027

The maximum duration of the Dutch expat ruling is five years in total, subject to the individual decision and any reductions required because of previous Dutch residence or earlier qualifying periods. The 2027 move from 30% to 27% changes the maximum allowance percentage; it does not reset the clock. An employee who has already used part of the ruling cannot claim a fresh five-year period merely because the percentage changes in 2027.

For example, an employee whose ruling began on 1 July 2024 may have a remaining eligible term that ends before 1 July 2029, depending on the decision and any reductions. From 2027, the applicable maximum percentage may be 27%, but the employee does not receive five additional years from 1 January 2027. Similarly, an employee with a decision ending in 2028 cannot extend it to 2032 simply because the lower percentage starts in 2027.

Before relying on an advertised “five-year expat package,” check the start date, end date and any prior Dutch residence periods in the official decision. The 30% ruling guide for the Netherlands provides additional context on eligibility, duration and employer administration.

Net salary impact with a transparent constant-rules 2026 versus 2027 illustration

A clear comparison begins by holding other assumptions constant. Suppose an employee has fixed total annual remuneration of EUR 80,000 and the full allowance percentage is applied to that remuneration. In a simplified 2026 illustration at 30%, EUR 24,000 is treated as the exempt portion and EUR 56,000 remains taxable. At 27% in 2027, EUR 21,600 is exempt and EUR 58,400 is taxable.

The taxable portion therefore increases by EUR 2,400. That EUR 2,400 is not automatically EUR 2,400 of additional tax, and it is not automatically EUR 2,400 of net salary lost. The actual difference depends on marginal tax rates, payroll credits, social-security treatment, pension deductions, the salary cap and other personal circumstances. A marginal-rate calculation can show the direction of the change, but it remains illustrative if all other parameters are held constant.

Consider two employees with the same EUR 80,000 remuneration. Employee A keeps total remuneration unchanged and sees a larger taxable portion in 2027. Employee B has an employer that changes the gross salary or allowance structure to preserve part of the intended net package. Their outcomes will differ even though both are subject to the 27% maximum. Pensionable salary, employee pension contributions and benefits can also change the payslip, so review the complete package rather than only the allowance percentage.

When comparing an offer, ask for separate figures for gross salary, exempt allowance, taxable salary, employee pension contribution and expected net pay. The guide to pension contributions in the Netherlands can help explain why pension deductions may make two apparently similar salary packages produce different monthly results.

Salary thresholds, annual indexation, salary cap and contractual arrangements

The expat ruling is not available solely because an employee moves from another country. The employee must satisfy the relevant conditions, including the applicable salary standard and other eligibility requirements. Salary standards are indexed annually, so a threshold quoted for an earlier year should not be presented as the final indexed 2027 value. For employees in the protected transition group, the existing indexed salary standard remains relevant for the remaining eligible term under the stated transition rule.

The salary cap is another important limitation. The allowance cannot simply be calculated on unlimited remuneration when the statutory cap applies. A high salary may therefore produce a smaller effective percentage across total compensation than a simple 27% multiplication suggests. Ask payroll whether the cap is relevant to the proposed package and whether the employer applies the allowance to all eligible remuneration or only to a defined contractual base.

Contract language can materially affect the outcome. Some employers agree a fixed gross salary plus a tax-free allowance; others describe a target net package, a salary-sacrifice arrangement or a total-remuneration package that is adjusted when tax rules change. A clause that allows the employer to change the allowance while keeping total employment cost constant may produce a different result from a contract promising a fixed gross salary.

Before accepting an offer, confirm the start date of the ruling, the expected end date, the applicable salary standard, the salary cap, the treatment of bonuses and equity, and whether the employer bears the risk of future changes. The Netherlands salary and tax hub contains related country resources for reviewing the wider package and local payroll context.

Employee and employer mobility-package checklist

Employees should collect the documents needed to compare the package over time. The most useful records are the individual ruling decision, the employment contract, the latest payslip, the employer’s 2027 payroll simulation and any relocation agreement covering housing, travel, tax preparation or reimbursement of expenses.

• Confirm when the ruling was first applied: by 31 December 2023, during 2024, or from 1 January 2025.
• Check the approved start date, end date and any reductions to the five-year maximum.
• Ask whether the 27% maximum is applied to the full relevant remuneration or limited by the salary cap.
• Separate fixed salary, bonus, equity, holiday allowance, pension deductions and the tax-free allowance.
• Request side-by-side 2026 and 2027 net salary estimates using the same personal assumptions.
• Confirm whether the employer will amend the contract or keep total remuneration unchanged.
• Check who pays tax-return preparation, immigration support, relocation costs and other mobility benefits.

Employers should document the transition category and apply the correct salary standard in payroll. They should also explain how the lower maximum affects the package before the 2027 payroll change takes effect. A transparent statement should identify the taxable and exempt portions, assumptions about pension and payroll credits, and whether the calculation is an estimate rather than a guarantee of final annual tax.

For both parties, the most useful comparison is not “30% versus 27%” in isolation. It is a complete package comparison showing annual gross pay, taxable income, exempt allowance, pension deductions, expected monthly net pay and the date on which the ruling ends. This approach also makes it easier to compare competing job offers with different relocation benefits or salary structures.

Official sources, validation date and calculator limitations

This article was validated on 22 October 2026. The 27% change is treated here as enacted and effective from 1 January 2027. The transition table follows the Rijksoverheid description: employees whose ruling was first applied by 31 December 2023 retain the maximum 30% and the existing annually indexed salary standard for the remaining eligible term; first applications during 2024 use a maximum of 27% with the existing indexed salary standard; and applications from 1 January 2025 use a maximum of 27% with the new indexed salary standard.

Key sources include the Rijksoverheid information on tax benefits for foreign employees, the Business.gov.nl explanation of the reduction to 27% and the Dutch Tax Administration payroll-tax handbook. Separate Tax Plan 2027 proposals should not be confused with the enacted 27% change described in this guide.

The existing calculator should not be treated as a validated 2027 expat-ruling calculator. It can be used as a suggested future comparison tool for ordinary gross-to-net scenarios, but it does not replace an employer’s payroll simulation or an individual tax assessment. Results may differ because of personal tax credits, pension participation, previous Dutch residence, bonuses, equity, salary caps, contractual terms and the remaining duration of the individual decision.

All figures in this article are estimates for explanation and planning only, not official tax advice. If a job offer depends on a particular net salary, ask the employer to confirm the calculation in writing and obtain professional Dutch tax advice before signing. The practical next step is to compare the full 2026 and 2027 package using the same assumptions, then verify the ruling decision, contract and payroll treatment.

Related tools

• related calculator
• Access to all tax guides for the Netherlands