What’s changing in the Netherlands in 2026
Income tax changes and reduction in business owners’ allowance
In 2026, income tax bands and rates are changing. Taxpayers earning up to €38,883 are in band 1 with a rate of 35.70%, taxpayers earning between €38,883 and €79,137 are in band 2 (37.56%) and taxpayers earning €79,137 or more are in band 3 (49.50%). Calculate your income tax with this tool by the KVK.
The private business ownership allowance (zelfstandigenaftrek), i.e. the tax-free allowance for business owners, will be reduced significantly: from €2,470 in 2025 to €1,200 in 2026.
Higher taxes on overnight stays
The VAT rate on overnight accommodation will increase from 9% to 21% for stays in 2026 (including stays booked and paid for before year-end). This applies to hotels, holiday homes, bed and breakfasts (B&Bs), guesthouses, hostels, furnished mobile homes, and stays booked through holiday rental platforms. The VAT rate for campsites remains at 9%.
Salary thresholds for highly skilled migrants
The Dutch Immigration and Naturalisation service (IND) adjusts its salary requirements for applications for residency as a highly skilled migrant in the Netherlands twice annually. We will add this information here as soon as it’s announced.
Minimum wage increases
On 1 January 2026, the legal hourly minimum wage for full-time workers aged 21 and over will increase from €14.06 to €14.71. AOW and WW benefits will increase by the same percentage. See the full table of minimum wage rates (in Dutch).
Reduced motor vehicle tax rate for zero-emission cars extended
In 2025, a discounted rate of 75% of motor vehicle tax (motorrijtuigenbelasting, MRB) for electric and hydrogen cars was introduced. (Zero-emission vehicles had previously been exempt from MRB.) This discount was set to be stopped but has now been extended until 2030, albeit in incrementally lower percentages: from 2026 to 2028, a 30% discount will apply to zero-emission vehicles; in 2029, this will go down to 25% in 2029 and be stopped entirely in 2030.
In addition, the MRB quarter rate will be abolished in 2026.
More tap-water taxes; lower water bills for Amsterdammers
Businesses using large amounts of tap water will see their taxes go up. Currently, only the first 300 m³ per year are taxed; from 2026, this will be the first 50,000 m³. From 2027, the allowance will disappear altogether and businesses will be taxed on all the tap water they use.
In Amsterdam, the price for drinking water will decrease (article in Dutch) due to savings in the previous period. How much the water bill goes down depends on usage and whether the home has a water meter installed.
Permit requirement for second homes in Amsterdam
Starting in 2026, owners of a second home in the city – i.e. a pied-à-terre, a property that is not tenanted but also not the owner’s primary residence – will need a permit (page in Dutch). Current owners of second homes must fulfil the following conditions to qualify for a permit:
- they may not be registered as a resident of the City of Amsterdam
- they may not own more than one second home in Amsterdam
- they or members of their household must use the property themselves
- the property may not be used as an office or for holiday rentals
- social-housing properties are not eligible
Additional conditions apply to new buyers of an Amsterdam property intended as a second home after 2025.
City of Amsterdam service fees
The City of Amsterdam is increasing the fees for its products and services (page in Dutch), such as permits or marriage certificates. Note that the fees for some services, including passport renewals, are determined by national government.
Find out more
You can find more detailed information on the changes that are relevant for businesses on business.gov.nl and the Dutch Government website (in Dutch) and stay up to date with news for the City of Amsterdam and Weesp. And if you haven’t already, don’t forget to sign up to the IN Amsterdam newsletters for regular updates on news and events for the international community in the Amsterdam Area.