Most people in the Netherlands can expect a small boost to their disposable income in 2026, following a series of adjustments to the income tax system and social contributions. While the increases are generally modest, they affect workers across all income levels, as well as pensioners and those on the minimum wage.

Lower Income Tax Brings Small Gains for Most Workers

One of the key changes in 2026 is a slight reduction in the lower income tax rate, which will fall from 35.82% to 35.75%. According to payroll services firm ADP, this change will translate into a small but noticeable increase in take-home pay for many employees.

Someone earning the average gross monthly salary of €3,704 will take home around €26 more per month. For higher earners, the impact is more limited. Employees earning twice the average salary can expect an additional €37 per month, while those earning three times the average salary will see their net income rise by about €16 per month.

Although the top income tax rate will increase to 49.5%, this is partially offset by a higher income threshold. As a result, people on middle incomes will reach the highest tax bracket later, reducing the immediate impact of the higher rate.

Minimum Wage Increase Benefits Low-Income Workers

People on the lowest incomes will benefit most visibly from an increase in the minimum wage. From 2026, the minimum hourly wage will rise from €14.40 to €14.71. For someone working a standard 36-hour week, this means an additional €46 per month before tax.

This increase provides some relief to workers who are most affected by rising living costs, although it does not fully compensate for inflation in recent years.

Correction for Part-Time and Young Workers

One group that struggled in recent years consists of people earning between €1,000 and €2,000 per month. This category includes many part-time workers and people under the age of 21 who are not entitled to the full minimum wage.

According to ADP tax law expert Karin Stam, incomes in this group fell in 2025 due to changes in tax rules and would have declined further if no action had been taken. However, a correction included in the 2026 tax plan means that these workers will be better off next year than they were in 2025.

That said, Stam notes that their disposable income will still be lower in 2026 than it was in 2024, highlighting that the reform only partially reverses earlier losses.

Pensioners See Modest Improvements

Pensioners will also benefit from the 2026 reforms, mainly due to a reduction in healthcare contributions under the Zvw scheme. The contribution rate will fall from 5.26% to 4.85%.

For a pensioner receiving €1,000 per month, this results in an increase of around €5. Those with a monthly pension of €2,500 will see their income rise by approximately €12.

Small Steps, Broad Impact

Overall, the 2026 tax reforms are designed to spread modest income gains across the population. While the increases are relatively small, they reflect an effort to ease financial pressure on workers, low-income households, and pensioners alike. However, for many, the changes will only partially offset the rising cost of living experienced in recent years.

References 

DutchNews. (2026, December 16). Tax reforms mean incomes will go up across the board in 2026. Retrieved from DutchNews: https://www.dutchnews.nl/2025/12/tax-reforms-mean-incomes-will-go-up-across-the-board-in-2026/

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