Dutch House of Representatives adopts amended version of the Tax Plan 2026

On 27 November 2025, the the amended version of the Tax Plan 2026 was adopted. The legislative proposals in the Tax Plan 2026 were published by the Dutch government, acting in a caretaker capacity, on 16 September 2025 (Budget Day 2025). The Dutch House of Representatives debated the legislative proposals and amended some parts. In addition, the Dutch government, acting in a caretaker capacity, included several additional proposals in amendment notes.

Changes to the Tax Plan 2026

Following parliamentary debate in the Dutch House of Representatives, the most important changes to the Tax Plan 2026 compared to the original legislative proposals are as follows.

Adjustment in box 1 personal income tax rates

The tax rate for the first bracket will be 35.75 percent instead of the previously proposed 35.70 percent. This tax rate will be further increased by 0.01 percent annually in the years 2031 / 2033 and 2035. In addition, the threshold for the highest bracket will be raised to 78,426 euros instead of the previously proposed 79,137 euros. Finally, several adjustments will be made to the employment tax credit.

Accelerated phase-out of deduction for no or low mortgage debt

The deduction applicable in cases of no or minimal home acquisition debt (commonly referred to as the ‘Hillen Act’) will be phased out at an accelerated pace. The annual reduction rate will increase from 3.33 percent to 4.5 percent. As a result, the deduction will be fully eliminated by 2041. As of 1 January 2026, the deduction for no or low home acquisition debt will amount to 71.82 percent of the difference between the benefits from an owner-occupied home and the deductible costs of that home.

Postponement of increase in effective rate for indirect lucrative interests (box 2)

The increase in the effective tax rate on income from indirect lucrative interests in box 2 (lucrative interests held through a personal holding company) has been postponed until 2028.

No additional increase in notional return on other assets and no reduction of tax-free allowance (box 3)

In box 3 of the personal income tax, the notional return on other assets will not be further increased to 7.78 percent in 2026 but will instead amount to 6 percent in 2026 (2025: 5.88 percent). In addition, the tax-free allowance in box 3 will not be reduced in 2026; it will amount to 59,357 euros per person (2025: 57,684 euros).

Changes to business succession facilities

Certain tax measures that were due to come into effect as part of the changes to business succession facilities will not be implemented (with regard to personal income tax and gift and inheritance tax). These are the following three measures:

• The restriction of business succession facilities to ordinary shares with a minimum interest of 5 percent.
• The extension to include shares in box 3 if at least 25 percent of the shares in the company are held together with family.
• The extension of the dilution scheme to certain diluted interests of less than 0.5 percent.

Extension of reduced benefit-in-kind rate for electric company cars

The benefit-in-kind rate (‘bijtelling’) for electric company cars will be 18 percent in 2026 for the first 30,000 euros and 20 percent in 2027. For any amount above this threshold, the benefit-in-kind rate will be 22 percent in both 2026 and 2027. From 2028 onwards, the benefit-in-kind rate will be 22 percent on the full value. The reduced benefit-in-kind rate applies for the first 60 months.

Reduction of youngtimer scheme for company cars

The youngtimer scheme for company cars will be tightened by increasing the minimum age for youngtimers from 15 years to 16 years in 2026. From 2027 onwards, the minimum age will be raised to 25 years. Under the youngtimer scheme, the taxable value for older company cars to determine the benefit-in-kind (‘bijtelling’) is based on the fair market value rather than the catalog value of the car.

Indexation of the R&D rebate

The R&D rebate (2025: 380,000 euros) will be increased through a one-off adjustment in 2026 by applying an inflation adjustment (2.9 percent), bringing it to 391,020 euros.

Limitation of energy investment allowance (EIA) and environmental investment allowance (MIA) for business profits (box 1)

For entrepreneurs earning business profits in box 1 of the personal income tax, the amount of the EIA and the MIA will be limited from 2029 to a maximum of the actual profit realized. This ensures that the application of these investment facilities cannot result in negative business profits. Amounts of EIA and MIA that cannot be utilised in a given year may still be carried forward and applied in the following nine calendar years. This limitation does not apply to corporate income tax.

Extension of temporary transitional law for mutual funds

The temporary transitional law for mutual funds will also apply to mutual funds established on or after 1 January 2025. Under this regime, mutual funds may choose to remain fiscally transparent for the time being, despite the amended definition, rather than becoming independently subject to corporate income tax.

Limitation of the temporary reduction in excise duty on fuels

The temporary reduction in excise duty on fuels will be scaled back less than previously proposed. This reduction was introduced on 1 April 2022 to mitigate the negative effects of the energy crisis and was phased out on 1 July 2023.

Introduction of increased air passenger duty rate for private aircraft

As of 1 January 2027, the rate of air passenger duty will be differentiated according to the distance flown to the passenger's final destination. In addition, starting in 2030, a higher rate will apply within each distance category for passengers traveling on an aircraft with 19 or fewer seats. For short-haul flights (up to approximately 2,000 kilometers) and flights to Aruba, Curaçao, Sint-Maarten, Bonaire, Sint-Eustatius and Saba, the rate will be 420 euros per passenger. For medium-haul destinations (approximately 2,000 to 5,500 kilometers), the rate will be 1,015 euros per passenger, and for long-haul destinations (from approximately 5,500 kilometers), the rate will be 2,100 euros per passenger.

Parliamentary debate by the Dutch Senate

The Dutch Senate will review the legislative proposals in the coming weeks. The vote in the Senate is scheduled for 16 December 2025. The Senate does not have the right to amend and can therefore only approve or reject the proposals. If the Senate approves the proposals included in the 2026 Tax Plan package, most changes will take effect on 1 January 2026.

Would you like to learn more about a specific topic from the 2026 Tax Plan? Your Forvis Mazars advisor will be happy to assist you.