The Netherlands is implementing dozens of new and updated laws on January 1. Here follows a summary of some of the changes that will impact Netherlands residents, including about two dozen that will affect the pocketbooks of many.

Work and Income Taxes

The tax plan for 2026 will result in minimum wage earners seeing their net income increase by between €10 and €20 per month, depending on hours worked. People earning a modal income (€3,875 per month) will get €34.67 more per month, and those earning twice the modal will see an increase of €47.17 per month.

The lowest income tax rate will fall slightly, but the second bracket will be higher, and the tax brackets will not adjust in line with inflation, meaning lower- and middle-income households will be less likely to feel the full benefits of any increase in purchasing power. The rate of tax paid on the first €39,357 chunk of income earned in a year will fall from 35.82 percent to 35.70 percent. The rate in the next block (up to €79,137) will increase from 37.48% to 37.56%. All income above that threshold will be taxed at 49.50 percent, the same rate as previously paid.

Minimum wage is increasing in January, rising from €14.40 per hour to €14.71 per hour for a 36-hour workweek on January 1. Minimum youth wages will increase by the same percentage.

Minimum youth wages will also increase by just over 2 percent. Workers who are 20 years of age will see their minimum hourly wage increase to €11.77, while 19-year-olds will earn a minimum of €8.83 and anyone 18 years of age will take a minimum of €7.36. The rate will be €5.81, €5.07, or €4.41 for those aged 17, 16, or 15, respectively.

Several welfare benefits are linked to the minimum wage, so they will also increase. These include unemployment, occupational disability, disability, and sickness benefits.

The mortgage interest tax deduction is 37.56 percent in 2025.

The self-employed tax deduction will be further phased out in 2026. This year, the deduction was €2,470. Next year, it will be less than half that at €1,200. Self-employed people can deduct this amount from their profit, reducing their tax liability, if they work at least 1,225 hours in their businesses per calendar year. This deduction will continue to decrease in the coming years.

Single people will not have to pay Box 3 asset tax on the first €58,568 of savings and investments. Two tax partners filing income tax together will not have to pay the asset tax on up to €117,136 in savings.

The Box 3 tax rate will remain 36 percent.

The Box 2 tax on substantial business interests will be 24.50 percent on income up to 68,843 euros, and 31 percent for amounts above that limit.

Interest on debt charged by finance companies will be capped at 12 percent, down from 14 percent.

The income allowance exempt from wage garnishment calculations to resolve debts will increase with inflation. Current rates range from just under 2,100 euros for a single adult without children, to nearly 2,900 euros for a household of two adults with minor-aged children.

Healthcare

Health insurance premiums are increasing by an average of €1 per month next year. The average premium in 2026 is €159.63 for basic health insurance.

The health insurance deductible will not be affected by family doctors’ consultations with specialists, including mental health providers.

The maximum healthcare allowance is decreasing slightly. Single people will receive €2 less per month, reaching a maximum of €219. But the income threshold will increase, meaning that the healthcare allowance will be phased out more slowly. On balance, many people receiving this allowance will therefore receive a slightly higher amount.

Health insurers will reimburse people trying to quit smoking in an approved program three times per year, instead of once.

Physiotherapy and exercise therapy for people with severe axial spondyloarthritis (axSpA) will also be covered by the basic health insurance package.

Health insurance deductibles will remain at 385 euros, and the personal contribution for prescriptions remains capped at 250 euros.

Healthcare patients who travel by car, taxi, or public transport will contribute up to 134 euros in travel costs above the deductible.

Anyone receiving the WMO-Hulp municipal benefit must contribute 21.80 euros per month, 80 cents more than in 2025.

Retirement and Pension

Several pension funds are switching to the new pension system on January 1. Then, 9.5 million Dutch will be on the new system. Under the new system, pensions are held in individual accounts. Younger participants’ funds are invested more aggressively, while older participants’ accounts are managed conservatively. The new system also requires pension funds to hold smaller reserves, so some indicated that it would lead to higher payouts for retirees.

But there are also concerns that the new system will negatively impact women, who often work part-time during their 20s and 30s – when most of the pension accrual will happen under the new system – because they have to care for children and shoulder other unpaid work.

The state pension age will remain 67 years. The state pension benefit (AOW) is linked to the minimum wage and will increase along with it.

Employees with physically demanding work can retire 3 years before the state pension age through the Early Retirement Scheme (RVU). They receive benefits from their employer until they reach retirement age. The amount is increasing to €2,357 gross per month through indexation.

Family and Pets

Parents will receive higher allowances to contribute to childcare costs. Working parents with a combined income of up to €56,412 will receive 96 percent of the maximum hourly rate reimbursed. Parents with a higher income will also receive a higher reimbursement percentage.

The maximum hourly rate for daycare is increasing to €11.23, for after-school care to €9.98, and for childminders to €8.49.

The child-related budget will increase slightly for single parents with an income of up to €29,736. Couples with an income of up to €39,141 will also receive a slightly higher amount. Parents earning more than these amounts may receive slightly less.

Alimony amounts will increase by 4.6 percent, affecting both spousal support and child support payments.

Residents may no longer own a hairless cat or a “folded” cat, like a Scottish Fold, unless the pet was microchipped before the end of 2025. From January 1, those caught violating the ban will face a fine of €1,500.

New passports will cost up to 88.65 euros for adults, and 67.05 euros for children.

Identity cards will cost up to 80.10 euros for adults, and 43.20 euros for children.

Foster parent daily benefits will increase by nearly 2.9 percent to a maximum of 30.62 euros per child per day, depending on the child’s age.

Emergency foster care providers will be eligible for additional support of up to 4.96 euros per child per day.

Surcharges on disposable cups and food containers will be scrapped.

Housing and Housing Costs

Transfer tax on residential properties bought as investments will decrease from 10.4 percent to 8 percent. This applies to homes bought not to live in, but to rent out or use as holiday accommodation. The government hopes that this will encourage more landlords to buy more homes to rent out, reversing some of the rental sell-off triggered by the Affordable Rent Act in 2024.

Home buyers up to 35 years of age will not be required to pay transfer tax when purchasing a home valued at up to 555,000 euros.

The National Mortgage Guarantee scheme will be eligible for homes sold for up to 470,000 euros, or 498,200 euros when factoring in energy-saving investments.

The income limit for social housing is 51,537 euros for single-person households, and 56,910 euros for households with two or more people. The maximum rent increase for social housing will not change until July.

Rent-controlled mid-market housing may increase by a maximum of 6.1 percent next year.

Private sector apartment rents can rise by 4.4 percent.

The rules for the rent allowance are changing so that tenants paying high rents can also qualify. Currently, tenants with rent exceeding €900 automatically don’t qualify for the housing benefit, with the idea that if you can qualify for a rent that high, you can afford it. But due to the housing shortage, many tenants are stuck paying rent beyond their means because it is the only suitable living space they can find.

From 1 January 2026, everyone aged 21 and over can apply for a housing benefit, regardless of their rent. However, the government will only pay the benefit on the portion of the rent up to €932.93 per month. For young people aged 18 to 20, the government will pay a benefit of up to €498.20.

Gas and electricity prices will go up by about 3 percent, or roughly 24 euros per year for an average household. Many households will also pay more for their water.

Municipal taxes and levies are also rising, by an average of 3.9 percent. The average homeowner will spend €1,001 on municipal housing costs next year, topping the €1,000 mark for the first time.

All residential properties will be required to install a smart energy meter or digital meter to replace analog meters still in use. Grid operators will contact those with an analog meter to schedule the change, and residents and home owners will be required to comply.

Crime, Justice, and Security

The Dutch government is set to ban consumer fireworks next year, making this the last New Year’s Eve period with legal fireworks.

Secret compartments may no longer be installed in vehicles.

Childcare providers must report serious incidents involving a child to the local GGD municipal health service.

After-school caregivers can transport a maximum of 8 children when using special electric vehicles and certain types of cargo bikes.

Dutch laws against discrimination will also apply to the Dutch Caribbean islands of Bonaire, Saba, and Sint Eustatius.

New rules on combating organized crime will come into effect. From January 1, businesses selling goods will not be allowed to accept cash payments of €3,000 or higher. The Dutch authorities hope that this will make it harder for criminals to use cash for money laundering. The ban does not apply to transactions between private individuals or to services.

Business and Entrepreneurship

The government is also taking more steps to combat tax evasion through cryptocurrencies. Crypto providers must collect personal data from their customers from next year and report this data, as well as customers’ transaction data, to the Tax Authority. Parliament will debate this law in early 2026, and once it is passed by both Parliament and the Senate, the government plans to implement it retroactively from January 1, 2026.

Retailers will be able to digitally register VAT refunds for tourists from outside the European Union starting in January 2026.

Gambling taxes will increase from 34.2 to 37.8 percent.

Businesses using a lot of tap water will pay more tax next year. Currently, businesses only pay tax for the first 300 cubic meters of water used. From 2026, water will be taxed up to 50,000 cubic meters. And from 2027, businesses will pay tax on all the tap water they use.

From January 1, employers will no longer receive the Wage Cost Benefit (LKV) for older employees over the age of 56. The benefit compensated some of the older employees’ wages, with the idea that it would encourage employers to employ more older workers. The benefit for employees with disabilities remains, and employers may be entitled to it for the duration of the employee’s employment, instead of the current three years.

The transition payment upon dismissal will increase through indexation. In 2026, it will amount to a maximum of €102,000. If the dismissed employee’s annual salary is higher than that amount, the transition payment will be a maximum of one gross annual salary.

Anglers fishing in saltwater must use a European Union app to register bluefin tuna, eel, and sea bass catches.

Trains, Fuel, Energy, and Vehicle Taxes

Dutch national railway NS is hiking the prices of its train tickets and subscriptions. On average, prices will increase by 6.5 percent.

Taxi drivers using cars may will increase the flag pull fee to 4.31 euros, from 4.15 euros, with a fee of up to 3.17 euros per kilometer, and 52 cents per minute. Taxi vans will see the flag pull increase by 33 cents to 8.77 euros, with per-kilometer charges capped at 4 euros, and per-minute rates of 59 cents. The rates are maximums, and taxis can charge less than the amount.

Taxi waiting fees will increase from 57.20 euros per hour to 59.41 euros.

The excise duty on petrol will increase by 5.5 cents per liter, on diesel by 3.6 cents, and on LPG by 1.3 cents.

The standard energy tax discount will face a slight cut of about 50 cents per month.

Natural gas rates will increase by 0.1 cents per cubic meter for consumers.

Electricity rates will decrease by 1.3 cents per kWh for consumers.

Energy bills must be more transparent and comprehensive..

Deposits for new energy contracts will be capped at one-third of an estimated annual bill.

Energy suppliers and municipalities will be authorized to share late payment details with organizations that provide debt assistance.

Some motorists will pay more motor vehicle tax (MVT) next year. The quarter rate for this tax will be abolished starting in 2026. Cars with zero CO2 emissions will pay 70 or 75 percent or the full MVT, camper vans will pay half instead of a quarter, and other fully electric or hydrogen-powered vehicles will pay the full MVT.

The tax you pay when buying a car, van, or motorcycle (BMP) is increasing. The more CO2 the vehicle emits, the higher the BPM. This rate will increase slightly each year until 2028. The lower BPM for emission-free cars will also apply to emission-free motorcycles and special passenger cars like campers and wheelchair-accessible vehicles.

Additional tax discounts for zero-emissions vehicles will fall by up to 1,200 euros per year.

Company car drivers will be eligible for the youngtimer scheme discount if they have a vehicle at least 16 years old, instead of 15 years old. Those with a 2011 model year vehicle will pay more tax on the current market value in 2026, compared to someone with a 2010 model year vehicle in 2025.

The Youngtimer scheme will be based on 35 percent of the current market value of the vehicle, and will no longer factor in the value of the car when it was purchased new.

Scooters, mopeds, and e-bikes may only be dismantled by approved companies.

Higher Education Grants

Research and applied sciences university students will receive the basic study grant of 130.21 euros per month if they live at home, 324.52 euros if they live away from home, and a maximum supplementary grant of 491.08 euros monthly.

Vocational students will be eligible for a basic study grant of 107.26 euros per month if they live at home, or 350.03 euros if they live away from home. They will be able to receive supplemental grants of up to 438.08 euros monthly during the first half of the year if they live at home, or 466.40 euros when living elsewhere.

Packages, Postage, Overnight Stays, Payments and Agriculture

The Netherlands will implement a handling fee for packages from outside the European Union. The handling fee will be €2 per product line in the order for orders worth €150 or less. This will make the average order from Chinese webshops like Temu or Shein €6 more expensive. When exactly this handling fee will be implemented is unclear – the Dutch government wants to time it to coincide with similar measures in France, Belgium, and Luxembourg. The European Commission will implement an EU-wide import fee of €3 per package in July 2026.

The VAT rate on overnight stays will jump from 9 percent to 21 percent on all holiday accommodations except camp sites. Hotels and other accommodations are trying to soften the blow of the VAT hike by charging less for rooms and more for related services and facilities, which will still fall under the low VAT rate, but they can only do so much before getting in trouble with the Tax Authority.

PostNL is increasing the price of stamps again. Next year, a stamp will cost €1.40, up from the current €1.31. A decade ago, stamps still cost 73 cents each.

The iDeal payment system is phasing out to Wero. The transition will start early in 2026. According to the company, little beyond the logo will change for customers. “Your checkout will continue to work, your PSP remains unchanged, and there’s nothing you need to adjust. Meanwhile, we’re building the new infrastructure behind the scenes and securely migrating transactions to Wero,” iDeal said.

Electric shock devices, including cattle prods, may not be used by farmers and livestock transport firms operating domestically.

NL Times, Saturday, 20 December 2025 – 08:15