Netherlands Tax Plan 2027 introduces income tax and waste levy changes

The Dutch government's Belastingplan 2027 introduces several fiscal changes affecting various sectors and individuals. For employees and pensioners, the first and second income tax brackets in Box 1 are set to increase, with the first rising from 35.75% to 36.23% and the second from 37.56% to 38.16%. Conversely, the tax-free allowance for business kilometers driven by employees is expected to increase from 0.23 to 0.25 euros.

Self-employed individuals face higher taxable income due to reductions in deductions, including the 'zelfstandigenaftrek' and the 'startersaftrek'.

The Vereniging Afvalbedrijven (VA) has raised concerns regarding the plan's impact on the waste sector. The association warns that increased CO2 levies and waste taxes could undermine the circular economy by driving waste streams and valuable raw materials abroad. According to the VA, these measures could result in tax increases totaling hundreds of millions of euros annually, potentially reaching nearly half a billion euros per year by 2035, which may weaken domestic investment and employment in waste processing.