Under the Belastingplan 2027, Dutch income tax in 2027 would be 36.23% up to €39,247, 38.16% up to the top-rate threshold and 49.50% above it. On 29 September 2026 the cabinet proposed to raise that threshold from €78,426 to €80,578 and to cut the planned rise in the labour tax credit from €173 to €133. Parliament still has to approve both.
The combination of Prinsjesdag and the later letter makes it hard to see what is actually planned for next year. This article sets out the proposed rates and credits for 2027, what changed on 29 September and what the cabinet expects it to mean for purchasing power. The figures apply to people below state pension age.
The 2027 brackets compared with 2026
The rates in the first two brackets rise in 2027, mainly to pay for lower healthcare premiums. According to the Belastingdienst, the rates in 2026 are 35.75% up to €38,883, 37.56% up to €78,426 and 49.50% above that. The Belastingplan 2027 sets the 2027 rates at 36.23% up to €39,247, 38.16% up to €78,426 and 49.50% above.
| Bracket | 2026 | 2027 (Prinsjesdag) | 2027 (after 29 September) |
|---|---|---|---|
| First bracket | 35.75% up to €38,883 | 36.23% up to €39,247 | 36.23% up to €39,247 |
| Second bracket | 37.56% up to €78,426 | 38.16% up to €78,426 | 38.16% up to €80,578 |
| Top rate | 49.50% | 49.50% | 49.50% |
On Prinsjesdag the top-rate threshold was frozen at €78,426, but the letter of 29 September raises it to €80,578. For someone earning above that amount, the higher threshold saves at most about €244 a year, because €2,152 of income is then taxed at 38.16% instead of 49.50%. For working people, the smaller increase in the labour tax credit takes up to €40 of that back.
Tax credits in 2027
The general tax credit (algemene heffingskorting) rises to a maximum of €3,154 in 2027, and the labour tax credit (arbeidskorting) was proposed at a maximum of €5,929 on Prinsjesdag. According to the Rijksoverheid, that labour credit included an increase of €173. In the letter of 29 September the cabinet proposes to reduce this increase to €133 and to phase out the general tax credit more slowly. According to the table in the letter, the changes mainly help the two highest income groups.
Higher earners also see a change in pension saving. From 2027, the income above which you can no longer build up pension with tax relief is frozen for six years at the 2026 level of €137,800. Over time, more of your income therefore falls above it.
What it means for purchasing power
The cabinet expects median purchasing power across all households to fall by 0.1% in 2027, both before and after the changes of 29 September, excluding macro-economic effects. According to the table in the letter, working people improve from minus 0.2% to minus 0.1%, while pensioners stay at plus 0.3%. These are median figures, so your own outcome can differ considerably depending on your income, household and housing situation.
For your net worth, the effect of a few tenths of a percent is small compared with what you save or invest each month. If you want to see how a change in net income affects your plans, our article on your savings rate shows how much a small change in what you set aside matters over time.
How Gylder fits in
Gylder (gylder.nl) is a net worth tracker, not a budgeting app. It does not calculate your income tax. It does show how your savings and investments grow month by month, so you can see whether a change in your net income actually ends up in your wealth.
What this doesn't tell you
All 2027 figures are proposals in the Belastingplan 2027 and the letter of 29 September, and they only apply once parliament approves them. The rates shown apply below state pension age, and other credits and allowances also affect your net income. This article is general information, not tax advice.
Frequently asked questions
What are the income tax brackets in 2027? According to the Belastingplan 2027, 36.23% up to €39,247, 38.16% up to the top-rate threshold and 49.50% above it, for people below state pension age.
At what income does the top rate start in 2027? On Prinsjesdag the threshold stayed at €78,426, but on 29 September 2026 the cabinet proposed to raise it to €80,578.
How much is the labour tax credit in 2027? The Belastingplan set the maximum at €5,929, including an increase of €173. The cabinet has since proposed to lower that increase to €133.
Will I have more to spend in 2027? The cabinet expects median purchasing power for all households to fall by 0.1%, with working people at minus 0.1% and pensioners at plus 0.3%.