In 2027, the tax rates in the first two brackets will increase. The first bracket will also be extended. As a result, the tax burden on income up to € 78,426 may be higher than in 2026.
The maximum mortgage interest deduction will increase to 38.16% in 2027. The deemed rental value of owner-occupied homes (eigenwoningforfait) will be 0.35% for properties with a WOZ value up to € 1,360,000. For the value above this threshold, the rate will be 2.35%.
| Income | Tax rate |
|---|---|
| € 0 t/m € 38,883 | 35.7% |
| € 38,883 t/m € 78,426 | 37.56% |
| > € 78,426 | 49.5% |
| Income | Tax rate |
|---|---|
| € 0 t/m € 39,247 | 36.23% |
| € 39,247 t/m € 78,426 | 38.16% |
| > € 78,426 | 49.5% |
The table below compares the income tax rates for individuals who have not yet reached the state pension age (AOW) in 2026 and 2027.
"}},{"componentType":"sectionTitle","title":"Box 3: the future remains uncertain"},{"componentType":"paragraph","richBody":{"value":"In 2021, the Dutch Supreme Court ruled that taxation based on a presumed return is not always permissible. As a result, a temporary rebuttal scheme is currently in place, allowing taxpayers to demonstrate that their actual return was lower. Ultimately, a completely new Box 3 system is expected. The House of Representatives approved the Actual Return Taxation Act in February 2026. The Senate postponed its review pending Budget Day.
On Budget Day, the State Secretary published a separate letter outlining four possible directions for the future of Box 3. One option builds on the current bill before the Senate, with some adjustments. Under this approach, taxation based on annually realised and unrealised gains would remain the standard. The other three options would ultimately lead to a system in which tax is only levied when a capital gain is actually realised, for example when assets are sold. The main differences between the options concern the implementation method and timeline.
The State Secretary has asked the House of Representatives to contribute to the discussion on the future design of the system. A clear direction is expected to be established in the Spring Memorandum 2027. A new system will likely come into effect later than 1 January 2028. Until then, the current system and the rebuttal scheme will continue to coexist.
"}},{"componentType":"sectionTitle","title":"Gift tax and inheritance: limited changes for now"},{"componentType":"paragraph","richBody":{"value":"No major changes to inheritance or gift tax are proposed for 2027. The only adjustment is an increase in the threshold for the first tax bracket to € 162,795. In the Spring Memorandum 2026, the government announced an investigation into gifting by acknowledgement of debt, whereby a gift is formally made but effectively loaned back by the recipient.
The issue therefore remains under consideration. Restricting paper gifts is still mentioned as a possible funding source for changes to Box 3 taxation.
"}},{"componentType":"sectionTitle","title":"Second homes: transfer tax reduced"},{"componentType":"paragraph","richBody":{"value":"The transfer tax rate will decrease from 8% to 7%. This applies when purchasing a property for rental purposes or as a second home. As a result, transfer tax will be lower from 2027 onward. If a purchase agreement has already been signed, completing the transfer in 2027 may offer a tax advantage.
For owner-occupied homes, the rate remains 2%. The first-time buyer exemption will also remain in place, with the property value threshold increasing to € 615,000. For non-residential real estate, the transfer tax rate remains 10.4%
"}},{"componentType":"sectionTitle","title":"Pension and annuity: income cap frozen"},{"componentType":"paragraph","richBody":{"value":"Tax-efficient pension or annuity accrual is only possible up to a maximum level of income. In 2026, this threshold is € 137,800. The government intends to freeze this limit from 2027 through 2032. For higher-income individuals, this could gradually reduce the amount of tax-advantaged pension accrual available. It is therefore advisable to review your pension alongside your private wealth, investments and other expected retirement income sources.
"}},{"componentType":"sectionTitle","title":"Deduction of specific healthcare expenses ends in 2028"},{"componentType":"paragraph","richBody":{"value":"The government intends to abolish the deduction of specific healthcare expenses as of 1 January 2028. The associated reimbursement scheme for specific healthcare costs will also be discontinued. Funding has been reserved for a new support scheme for people with chronic illnesses, which is expected to become available from 2028 onwards.
"}},{"componentType":"sectionTitle","title":"Assess the impact on your private assets"},{"alignedImage":{"position":"right","extension":"svg","original":"https://assets.ing.com/asset/85f070ee-99aa-433e-9bdf-9d80ae6b3ffe/Woman-Question-spot-1.svg","transformBaseUrl":"https://assets.ing.com/transform/85f070ee-99aa-433e-9bdf-9d80ae6b3ffe/Woman-Question-spot-1"},"componentType":"paragraph","richBody":{"value":"These proposals may affect your private wealth, cash flow and pension accumulation. Therefore, it is important not only to assess each measure individually, but also to consider their combined impact.
Would you like more information, or do you want to know how Budget Day affects you specifically? Then schedule a non-binding appointment with one of our advisors.
"},"textLinks":[{"text":"Make an appointment","url":"/en/personal/savings-and-investing/afspraak-vermogen-en"}]},{"componentType":"sectionTitle","title":"Entrepreneurs"},{"componentType":"paragraph","richBody":{"value":"Curious about how the plans for Budget Day will affect entrepreneurs?
"}},{"componentType":"cta","textLink":{"text":"Read about it here","url":"/en/personal/wealth/prinsjesdag-entrepreneurs-2026"}},{"componentType":"sectionTitle","title":"Good to know"},{"componentType":"paragraph","richBody":{"value":"The Budget Day proposals are not yet final. The minority government has submitted the plans, but both the House of Representatives and the Senate may still amend, supplement or reject them. Following the general political debates, the Tax Plan will undergo detailed parliamentary review. According to the current schedule, the Senate is expected to vote around 15 December 2026.
Written based on the situation as of 16 September 2026.
The information provided by ING in this article does not constitute an offer, advice or financial service. Its sole purpose is to inform you and provide practical insights. We recommend consulting a specialist regarding your financial and wealth planning at all times. Although this article has been prepared with the utmost care, inaccuracies or omissions may occur. ING accepts no liability for any damage arising from the use of the information provided. No rights may be derived from this information. Any rates mentioned are indicative only and are not binding on ING. All rights reserved and subject to change. This publication is issued by ING Bank N.V., with its statutory seat in Amsterdam.
"}}]},"hasMacro":false,"id":"cdc2635b-bf7c-415c-b0ff-72702dc59029","localeString":"en-GB","mainHeaderZone":{"backLink":{"textLink":{"text":"Wealth","url":"/en/personal/wealth"}},"componentType":"productHeader","coreHeader":{"body":"Prinsjesdag (Budget Day) 2026 does not bring any major changes in tax policy. However, several proposals may affect your wealth and financial planning. For example, the first two income tax brackets in Box 1 will increase, while the future of Box 3 remains uncertain. In addition, the government intends to temporarily freeze the maximum tax-deductible pension and annuity income threshold. Below, we outline the key proposals from the 2027 Tax Plan.","headerImage":{"extension":"jpg","original":"https://assets.ing.com/asset/30cd5c53-6944-4c67-a9f6-fa3a936234bf/Sector-update-binnenhof-def-3_tcm162-202698.jpg","publishedAt":"2018-07-06T14:14:23Z","transformBaseUrl":"https://assets.ing.com/transform/30cd5c53-6944-4c67-a9f6-fa3a936234bf/Sector-update-binnenhof-def-3_tcm162-202698","type":"image","updatedAt":"2023-12-21T14:53:25Z","width":733},"subtitle":"What the tax plans mean for your wealth","title":"Prinsjesdag 2026"}},"publishDate":"2026-09-17T11:13:11.049+02:00"}}