Understanding the 30% Ruling Eligibility
The 30% ruling is a tax advantage for highly skilled migrants moving to the Netherlands for a specific employment role. When you qualify, your employer can pay you up to 30% of your salary as a tax-free allowance. This is designed to cover the extra costs of moving and living abroad (extraterritorial costs). To be eligible, you must be recruited from outside the Netherlands, live more than 150 km from the Dutch border, and meet specific minimum salary requirements.
30% Ruling Step-Down Schedule
As of 2024, new rules introduced a scale-down mechanism over the 5-year duration of the ruling. Note: Employees who already had the ruling applied in Dec 2023 may be subject to transitional rules.
| Period | Tax-Free Allowance | Duration |
|---|---|---|
| First 20 months | 30% | Months 1-20 (Years 1 to ~1.5) |
| Next 20 months | 20% | Months 21-40 (Years ~1.5 to ~3.5) |
| Final 20 months | 10% | Months 41-60 (Years ~3.5 to 5) |
Salary Thresholds (2024 Index)
To benefit from the ruling, your taxable salary (the remaining 70%) must meet a minimum threshold. (Values are indexed annually).
- Standard requirement: €46,107 gross/year (taxable part)
- Under 30 with a master's degree: €35,048 gross/year (taxable part)
Box 1 Tax Rates 2025
| Taxable Income Bracket | Tax Rate |
|---|---|
| €0 – €75,518 | 36.97% |
| Over €75,518 | 49.50% |
Example Calculation
Software Engineer earning €80,000 gross per year
Without 30% Ruling
- Taxable Income: €80,000
- Income Tax (~Box 1): High
- Estimated Net: ~€50,100
With 30% Ruling (First 20 months)
- Tax-Free Allowance: €24,000
- Taxable Income: €56,000
- Estimated Net: ~€64,500
How to use the calculator
- Enter your Gross Salary: Input your annual or monthly gross income.
- Toggle 30% Ruling: Enable the 30% ruling option in the settings.
- Select Period: Choose whether you are in the 30%, 20%, or 10% phase of the step-down schedule.
- Check Thresholds: Ensure your remaining taxable salary meets the minimum requirement for your age and education level.
- Review Net Pay: The calculator updates instantly to show your estimated take-home pay.