The planned increase of the deemed return to 7.78% for the category ‘other assets’ (such as shares, bonds, rented real estate) will not go ahead. The rate in 2026 will be 6% instead of 7.78%. The tax-free allowance will not be reduced as proposed on Budget Day. The tax-free allowance will rise from €57,684 (2025) to €59,357 in 2026 (€118,714 if you have a fiscal partner).
"}},{"componentType":"sectionTitle","title":"Hillen Act to be abolished sooner"},{"componentType":"paragraph","richBody":{"value":"The Hillen Act will be phased out faster than previously planned. Instead of 2048, the scheme will disappear completely in 2041. This compensates for the lost tax revenue from the Box 3 changes.
"}},{"componentType":"paragraph","title":"What is the Hillen deduction?","richBody":{"value":"Do you have no or only a small mortgage on your home? Then the imputed rental value may be higher than the deductible costs, such as mortgage interest. In that case, you are entitled to an additional deduction: the Hillen deduction. The deduction equals the difference between your imputed rental value and the deductible costs. This way, you do not pay more tax because you have (almost) paid off your mortgage.
Since 2019, this deduction has been gradually reduced. With the adopted amendment to the Tax Plan 2026, the deduction will be phased out more quickly. In 2026, the deduction will amount to 71.867% of the difference between your imputed rental value and the deductible costs. From 2041, the deduction will disappear completely.
"}},{"componentType":"actionAccordion","actionAccordionList":[{"title":{"value":"Example 2026
"},"icon":{"transformBaseUrl":"https://assets.ing.com/transform/19669982-6e87-48c7-80f4-7d314a8b215c/Interest-Percentage_Out_Outline","type":"image","width":32,"altTextNL":"\"\"","original":"https://assets.ing.com/m/5093bfbde9405ba4/original/Interest-Percentage_Out_Outline.svg","extension":"svg"},"paragraphs":[{"componentType":"paragraph","richBody":{"value":"Suppose your home has a WOZ value of €1.8 million and you no longer have a mortgage. The imputed rental value is then €15,300. Because you cannot deduct any interest, you will receive a Hillen deduction of €10,996 in 2026 (71.867% * €15,300). The difference, €4,304, will be taxed as additional income in Box 1 at a maximum of 49.50% (the top rate in Box 1). The income tax payable on your home without a mortgage will then amount to €2,131.
"}}]}]},{"componentType":"sectionTitle","title":"Discount on the additional tax for electric cars will remain longer"},{"componentType":"paragraph","richBody":{"value":"Do you drive an electric car or are you considering buying one? The discount on the additional tax will remain for another two years, albeit in an adjusted form:
If you buy an electric car in 2026, the 18% additional tax will apply for 60 months.
"}},{"componentType":"sectionTitle","title":"Lucrative interest in private equity: postponement of the multiplier measure"},{"componentType":"paragraph","richBody":{"value":"The introduction of this measure will be postponed from 1 January 2026 to 1 January 2028. Are you active in private equity and do you hold a so-called ‘lucrative interest’ in Box 2 through an intermediate holding company? Then from 2028 you will face a higher tax burden in Box 2 at the rates applicable at that time.
Written by Robert Mantel and Stef Goossens, Tax Expertise Managers.
These changes (amendments), as well as the tax plan itself, must still be approved by the Senate. The vote is scheduled for 16 December 2025.
The information provided by ING in this article does not constitute an offer, advice or financial service and is intended solely to inform you and provide practical tips. We always recommend consulting a specialist regarding your financial and/or wealth planning. This article has been compiled with the utmost care. However, it is possible that the information in this article contains inaccuracies or omissions. ING is not liable for any damage (of any kind) resulting from the use, in any way, of the information provided. No rights can be derived from the information provided. Any rates mentioned are indicative and not binding for ING. All rights and changes reserved. This is a publication of ING Bank N.V., registered office in Amsterdam.
"}}]},{"componentType":"sectionTitle","title":"More about"},{"componentType":"cards","cards":[{"componentType":"articleCard","cardType":"article","cardSize":"medium","title":"What changes can entrepreneurs expect in 2026?","body":"In addition to changes to the business succession scheme (BOR), several other measures will affect entrepreneurs.","image":{"transformBaseUrl":"https://assets.ing.com/transform/90eee410-a1f9-43b1-b192-7ee3a286a7cd/V1-Two-young-women-carry-their-lunch-while-walking-around-the-office","type":"image","width":6276,"original":"https://assets.ing.com/m/5bced1592f2b62dc/original/V1-Two-young-women-carry-their-lunch-while-walking-around-the-office.jpg","extension":"jpg"},"date":"2025-09-19","link":{"url":"/en/private-banking/knowledge-and-insights/prinsjesdag-2025/tax-plan-2026-entrepreneur"}},{"componentType":"articleCard","cardType":"article","cardSize":"medium","title":"Estate planning in 2026","body":"No changes to inheritance and gift tax: rates remain unchanged and exemptions are not restricted. Read the new tax plans.","image":{"transformBaseUrl":"https://assets.ing.com/transform/19d6ad52-2d22-4ead-8330-7c5a040ece0c/600580931","type":"image","width":2100,"original":"https://assets.ing.com/m/4e2fcf53c99369dd/original/600580931.jpg","extension":"jpg"},"date":"2025-09-18","link":{"url":"/en/private-banking/knowledge-and-insights/prinsjesdag-2025/article-1---estate-planning-in-2026"}}]},{"componentType":"linkList","componentStyle":"default","iconTitle":{"title":"Related"},"textLinks":[{"url":"/en/private-banking/knowledge-and-insights/prinsjesdag-2025","text":"Prinsjesdag (Budget Day)"},{"url":"/en/private-banking/investing","text":"Investing"},{"url":"/en/private-banking/wealth-planning","text":"Wealth planning"},{"url":"/en/private-banking/our-approach","text":"Our approach"}]}]},"complementaryZone":{"flexComponents":[{"componentType":"cards","cards":[{"componentType":"productCard","cardType":"product","cardSize":"small","title":"Make an appointment","intro":"Let's start a conversation.","image":{"transformBaseUrl":"https://assets.ing.com/transform/3e538078-976f-4b74-b49c-90d7cd895df2/Web-12","type":"image","width":307,"original":"https://assets.ing.com/m/1d41bac33a10b194/original/Web-12.svg","extension":"svg"},"link":{"url":"/en/private-banking/customer-service"}},{"componentType":"productCard","cardType":"product","cardSize":"small","title":"Log in to My ING","intro":"Quick insights into your financial situation","image":{"transformBaseUrl":"https://assets.ing.com/transform/33c4e3a2-7e3d-47a1-9c6f-1993eedcdb8c/Web-13","type":"image","width":307,"original":"https://assets.ing.com/m/5aecfb619a645cd6/original/Web-13.svg","extension":"svg"},"link":{"url":"https://mijn.ing.nl/login"}}]}]}}}