Prinsjesdag (Budget day) 2026: what is changing for you as an entrepreneur?

1. Income tax

There are a number of changes in Box 1; the employment tax credit (arbeidskorting) is going up. The tax brackets are also increasing slightly: the first bracket goes from 35.75% to 36.23%, the second bracket goes from 37.56% to 38.16%, while the third bracket remains at 49.50%. The income threshold for the highest rate will not be adjusted.

For a long time, it was rumored that Budget Day would bring a change in Box 3 regarding the taxation of actual returns, but this ultimately did not happen. Just like in recent years, the imputed (deemed) return remains the standard. The tax-free assets allowance (heffingsvrij vermogen) increases slightly to €60,098. You may still choose to have your actual return taxed, but then the tax-free assets allowance does not apply.

Under certain conditions, specific non-reimbursed healthcare expenses were tax-deductible in the income tax return (aangifte inkomstenbelasting). This scheme is being abolished as of 2028.

Entrepreneur deductions
The private business ownership allowance (zelfstandigenaftrek) has been decreasing for several years. In 2026, the allowance is €1,200, and for 2027, this will be €900. From 2027, the starter’s deduction (startersaftrek) will also be cut. For 2027, the starter’s deduction is reduced to a meager €10, and in 2028, it will be completely abolished.

The starter’s deduction for occupational disability is also set to disappear. This is a deduction applying to entrepreneurs who cannot meet the regular hours criterion of 1,225 hours. For them, the reduced hours criterion of 800 hours applies. This deduction will be scrapped in 2029.

Additionally, starting entrepreneurs will no longer be able to apply arbitrary depreciation (willekeurige afschrijving) on their investments as of 2028.

When your tax partner works in your business for at least 525 hours without remuneration, you could sometimes make use of the co-working partner deduction (meewerkaftrek). As of 2027, this deduction will be phased down and will disappear entirely in 2030.

Anyone planning to invest in energy-saving business assets or sustainable energy is in luck; the deduction percentage for the Energy Investment Allowance (EIA) goes from 40% to 45.5% in 2027. Before making an investment, it is wise to check the website of the Netherlands Enterprise Agency (RVO) to see if the investment qualifies.

The tax credit for research and development work (WBSO) increases in 2027 from €15,797 to €16,179. You may qualify for this if you technically develop new products, production processes, or software yourself, or carry out technical-scientific research. Please note that you must first apply for an R&D declaration (S&O-verklaring) with the RVO.

Lowering these tax deductions causes aggregate taxable income (verzamelinkomen) to rise. Aggregate taxable income is used not only to calculate the taxes owed, but also when calculating income-dependent allowances (toeslagen) and student loan repayments with DUO. Despite the phasing down of the above deductions, the SME profit exemption (MKB-winstvrijstelling) remains unchanged at 12.7%.

2. VAT

Following an evaluation, it appeared that higher income groups benefited most from the reduced VAT rate on floriculture (sierteelt). Ornamental plants will therefore be taxed at 21% VAT as of 1 January 2028 instead of the lower 9% VAT rate.

Hot-air balloon rides were also re-evaluated. Previously, this fell under the reduced VAT rate of 9% because balloon rides were categorized under passenger transport. The evaluation concluded that this does not constitute public transport. Therefore, hot-air balloon operators must charge 21% VAT as of 1 January 2028 instead of 9%.

3. Transport

In 2026, the excise duty on diesel and petrol was temporarily reduced. This discount will continue throughout 2027. The mileage allowance (kilometervergoeding) also remains €0.25 per business kilometer. The increase from €0.23 to €0.25 was already introduced temporarily in 2026, but has now been made permanent.

Youngtimer scheme
Up to and including 2025, cars older than 15 years were considered ‘youngtimers’. This was favorable for people driving youngtimers, because you pay a lower addition for private use (bijtelling) on these vehicles (35% on current market value, instead of 22% or 25% on original catalog value). The plan was to alter this scheme, but that modification is being softened and will now look as follows:

Effective date	Original plan (car age)	New plan (car age)
01-01-2026	16 years or older	16 years or older
01-01-2027	25 years or older	17 years or older
01-01-2028	25 years or older	20 years or older

As a result, a car may temporarily fall outside the youngtimer scheme: a car from 2010 is sixteen years old in 2026 and falls within the youngtimer scheme. In 2027, that same car is seventeen and also falls within the youngtimer scheme. In 2028, this car no longer falls under the youngtimer scheme, because the car is then eighteen and youngtimers must be twenty years or older. In 2030, that same car falls back within the youngtimer scheme because the car is then twenty.

Greentimer scheme
There will be a brand-new scheme for older electric cars: the greentimer scheme. A reduced addition rate for private use will be introduced for electric cars aged 5 to 8 years. The reduced rate amounts to 14% for a maximum of three years, running from 2029 through 2032. After that, the scheme closes.

Flight tax
As of 2027, the flight tax (vliegbelasting) you pay will depend on the length of the flight. Anyone flying further will therefore pay more flight tax. However, the tax rate on long-distance flights has been reduced. Ultimately, flight tickets for longer distances will be taxed slightly lower than originally planned.

The measures from Prinsjesdag 2026 present both challenges and opportunities for entrepreneurs. It is important to respond to these changes in a timely manner so that you can take advantage of the benefits and mitigate any risks. Do you have any questions about this? You can always ask your bookkeeper!