All the Changes Coming into Effect on 1 January 2026

The Netherlands will see a wide array of new laws and rule changes come into force on 1 January 2026, affecting workers, consumers, businesses, and residents. These measures range from wage and benefit adjustments to tax and regulatory reforms, as parliament finalises its legislative agenda before the winter recess.

Minimum wage increases:
The statutory minimum wage for full-time workers aged 21 and over will rise, reflecting automatic indexation tied to wage developments and inflation. This means many low-wage workers will take home slightly more pay from January 1.

Benefits linked to the minimum wage:
Because welfare benefits such as unemployment (WW), disability (WIA), sickness benefits, and the state pension (AOW) are tied to the minimum wage, these will also increase proportionately in 2026.

Income tax brackets:
The thresholds and rates in Box 1 (income from work and home) are being adjusted. For example, the first tax bracket’s rate drops slightly while the second bracket sees a marginal increase, affecting how much income tax residents pay on earnings up to certain thresholds.

VAT on overnight stays:
From January 1, the VAT on overnight accommodation, including hotels, B&Bs, guesthouses, and similar stays, increases from 9% to 21%. This will raise tourism-related costs for visitors and residents alike (camping remains at 9%).

Cash payments ban:
Businesses selling goods will no longer be allowed to accept cash payments above €3,000, a change aimed at tightening anti-money-laundering rules. This applies to merchants but not to private individual transactions.

Digital VAT refunds:
VAT refunds for non-EU tourists will become digitally administered only, marking a shift from paper processes and speeding up claims but requiring online systems.

Tap water tax for businesses:
Companies using large amounts of tap water will face expanded taxation: the previous exemption at 300 m³ per year rises to cover up to 50,000 m³, after which the tax applies (and eventually all usage will be taxed in 2027).

Private business allowance reduced:
Self-employed business owners will see the zelfstandigenaftrek (business owners’ allowance) cut significantly (from €2,470 in 2025 to about €1,200 in 2026) reducing a key tax benefit.

Labour cost benefits:
For employers hiring older workers (56+) under some schemes (like the labour cost compensation, LKV), the benefit will end for new hires on January 1, while advantages for employees with disabilities will remain in place for as long as they are employed.

Transition payment on dismissal:
The statutory transition payment (severance) amount that employers must pay after dismissing an employee will be indexed, with a new maximum of around €102,000 in 2026.

Temporary work conditions:
Collective agreement changes mean temporary (agency) workers will receive equal secondary employment benefits (such as bonuses and allowances) as direct employees for comparable work. This is part of broader labour market reforms effective from January 1.

Property transfer tax on investments:
Investors buying residential property for renting or holiday use will pay a reduced property transfer tax of 8% instead of the previous 10.4%, potentially encouraging more investment in rental housing.

Permit requirements in some cities:
Certain municipalities, such as Amsterdam, plan new requirements (e.g., permits for second homes that are not the owner’s primary residence), though details may vary locally.

Train ticket prices:
Public transport users will see an increase in train ticket prices and subscriptions, with carriers like Nederlandse Spoorwegen (NS) applying average hikes.

Fuel taxes:
Although the lower excise duty on petrol, diesel, and LPG was extended into 2027, other vehicle taxes like private vehicle/motorcycle tax (bpm) rates based on CO₂ emissions will rise.

Electric vehicles:
The reduced motor vehicle tax (motorrijtuigenbelasting) for zero-emission cars will continue into 2026 with a lower discount than before, as part of a gradual phase-out.

Childcare and incident reporting:
Childcare organisations must report serious incidents involving a child to municipal health services (GGD) under stricter requirements, improving oversight and safety.

After-school care transport limits:
After-school caregivers using special electric vehicles or certain cargo bikes will face limits on how many children they can transport at once.

Anti-discrimination laws:
Newly clarified laws against discrimination will be extended to the Dutch Caribbean islands of Bonaire, Saba, and Sint Eustatius.

Criminal law changes:
Secret compartments in vehicles (often used to hide drugs or contraband) will be prohibited under new crime-fighting regulations.

Fireworks ban:
The legal ban on many consumer fireworks (Categories F2, F3, F4) is set to begin in 2026, meaning New Year’s celebrations may be quieter and more focused on professional displays.

Every year, the Dutch government finalises a package of new laws and regulatory adjustments just before the calendar turns. While some changes are small technical updates, many in 2026 have noticeable effects on household budgets, labour markets, business costs, and consumer behaviour. For instance, minimum wage increases and benefit adjustments aim to support income levels, while tax, VAT, and service fee changes will require families and companies to plan for higher costs in certain areas.

With a wide range of changes imminent, residents and businesses are advised to:

By understanding these shifts before they take effect on January 1, 2026, individuals and organisations can plan financial decisions and legal compliance more effectively and avoiding surprises in the new year.