The House of Representatives has passed the tax plans for 2026. The increase in the flat-rate income in box 3 will not go ahead. Of course, the plans are not final until they are also accepted by the Senate.
Box 3
The increase in lump-sum income in Box 3 for other assets included in the tax plans was removed from the tax plans at the last minute. The increase would raise this flat income, based on 2025 figures, from 5.88% to 7.78%. This will bring the flat rate for other assets to (around) 6% in 2026. People who realise a lower return can apply to the Inland Revenue to pay income tax on this lower return.
The reduction in tax-free assets in Box 3 will also not go ahead.
The cover for this measure is the accelerated phase-out of the so-called Hillen deduction. That is the part of the additional allowance for the owner-occupied home (after the owner-occupied home interest has been deducted from it) that is not counted as income. This deduction would have been phased out completely by 2048. That will now be the case as early as 2041.
Electric cars
The planned immediate abolition of the lower additional taxable benefit for electric cars will be spread over 2 years. In 2025, the addition for an all-electric car will be 17% on the list value up to €30,000. 22% will be added over the list value above €30,000. With effect from 1 January 2026, the 22% addition would also be calculated over the entire list value for electric cars.
This will now take effect only on 1 January 2028. For an electric car purchased in 2026, the addition on the first €30,000 of the list value is 18%. In 2027, this will be increased to 20%. The addition rules applicable when the car was first registered will remain in force for 60 months.
This measure is covered by raising the age of a youngtimer. In 2025, a car 15 years or older qualifies as a youngtimer. This will be increased to 16 years in 2026 and to 25 years from 2027. These changes are not subject to the 60-month time limit.