In late 2023, two amendments to the 2024 tax plan were adopted that further restricted the 30%-ruling. This involved the reduction of the tax-free percentage to 20% after 20 months and to 10% after another 20 months, as well as the abolition of the partial non-domestic tax status. These restrictions have since been amended via the 2025 tax plan. With effect from 2027, the maximum tax-free allowance will be 27% instead of 30%, and this rate will remain in place throughout the duration of the 30%-ruling period.

The option for the partial non-domestic tax status however will no longer be possible from January 1st, 2025. For employees who already were eligible for the 30%-ruling at the end of 2023, there is a transitional arrangement through which they can still opt for partial non-domestic taxation until the end of 2026.

As was the case in 2024, the 30% ruling is capped to a certain income level called the WNT norm (also known as the Balkenende norm). In 2024 this amount is € 233.000 on an annual basis. For 2025 this will be increased to € 246.000. This means that the 30% will not be applied to the part of the income that exceeds this amount. There is a transitional arrangement for employees for whom the 30%-ruling was applied over the last pay period (December) of 2022. For these employees, the 30%-ruling will only be capped from January 1st, 2026.