Expat Salary Shock: Why Your Net Income Just Dropped in 2026
Amsterdam – If you are an expat living in the Netherlands and your January 2026 payslip looks surprisingly lower than December’s, do not panic—but do pay attention. The second phase of the government’s controversial “30-20-10 Rule” has officially kicked in for many international workers.
The days of the flat “30% Ruling” are over for new arrivals. The tax-free exemption is now scaling down, meaning the Dutch tax authority (Belastingdienst) is taking a bigger slice of your pie. In this guide, The Dutch Daily explains exactly why your tax bill went up, who is protected by the “Old Guard” rules, and what the “30-20-10” timeline means for your future bank balance.
Table of Contents
- The Math: Why Less Exemption = Less Cash
- Are You Safe? (The Transition Law Check)
- The 30-20-10 Timeline: Count Your Months
- Real World Example: €6,000 Salary
- Key Takeaways
- Dutch Learning Corner
The Math: Why Less Exemption = Less Cash
Many expats are confused: “The rate dropped from 30% to 20%, so shouldn’t I pay less tax?” No. It works the opposite way.
The percentage refers to the Tax-Free Allowance (the part of your salary the government ignores).
* The Old Way (30%): On a €100 salary, the government ignored €30. You paid tax only on the remaining €70.
* The New Way (20%): Now, the government ignores only €20. You must pay tax on €80.
The Result: Your “Taxable Income” has increased. Since you are paying tax on a larger portion of your salary, your net take-home pay decreases.
Are You Safe? (The Transition Law Check)
Crucially, this cut does not apply to every expat immediately. It depends strictly on when your ruling started.
✅ The ‘Old Guard’ (Protected)
If you were granted the 30% ruling before January 1, 2024, you are safe. Under the Transitional Law (Overgangsrecht), you keep the full flat 30% rate for the entire 5-year duration of your grant.
❌ The ‘New Arrivals’ (Hit)
If your ruling started on or after January 1, 2024, you fall under the new phasing system. You are the group currently seeing a salary drop as you hit the 20-month mark.
The 30-20-10 Timeline: Count Your Months
The new system reduces your benefit every 20 months. It is critical to know where you stand in this cycle so you can budget for future drops.
- Months 1-20: You receive 30% tax-free. (Maximum benefit).
- Months 21-40: You receive 20% tax-free. (The current drop for many).
- Months 41-60: You receive 10% tax-free. (The final phase).
Real World Example: €6,000 Salary
Let’s look at how this impacts a typical highly skilled migrant earning €6,000 gross per month.
| Scenario | Tax-Free Amount | Taxable Salary | Estimated Net Loss |
|---|---|---|---|
| Phase 1 (30%) | €1,800 | €4,200 | – |
| Phase 2 (20%) | €1,200 | €4,800 | ~ €300 / month |
*Note: This is a simplified estimation. Social security premiums may affect the final net amount.
Key Takeaways
- Check Your Start Date: Did you start before 2024? You are lucky. After 2024? Check which “20-month phase” you are in.
- Wealth Tax: Remember, the “partial non-resident taxpayer” status (which exempted expats from Box 3 wealth tax on savings/investments) was also abolished in 2025. You now pay tax on global savings.
- Future Planning: If you are in the 20% phase now, prepare for another drop to 10% in less than two years.
Dutch Learning Corner
| Word (Dutch) | Pronunciation | Meaning | Context |
|---|---|---|---|
| 📉 De Versobering | Ver-so-be-ring | Cutback / Austerity | De versobering van de expatregeling. (The cutback of the expat ruling.) |
| ⚖️ Belastbaar Inkomen | Be-last-baar In-ko-men | Taxable Income | Je belastbaar inkomen is gestegen. (Your taxable income has increased.) |
Did Your Salary Drop?
Are you part of the “New Guard” who just saw their income decrease? Or are you considering leaving the Netherlands due to these tax changes? Share your thoughts below.
