Skip to content
EN
Indexo Pro

Understand · Payroll glossary

What is the tax-free amount?

Updated on

The tax-free amount is the part of your annual income on which you pay no tax: €11,550 for 2026 income. In Dutch: belastingvrije som.

Definition of the tax-free amount

It is granted to every taxpayer and increased for children and other dependants. Technically, tax is calculated on all your income, then reduced by the tax that would correspond to the tax-free amount. The reform passed in 2026 raises it in stages, to €15,600 (indexed) for 2030 income.

Withholding tax (bedrijfsvoorheffing / précompte professionnel) for 2026 uses a lower amount (€11,170): this is one of the reasons for tax refunds.

The key figure in 2026

€11,5502026 income (tax year 2027): base amount of €4,945 × indexation coefficient 2.3356 = €11,549.54, rounded to €11,550

Source: Réforme de l’impôt des personnes physiques (4 August 2026), Wolters Kluwer (secondary source). See also: Récapitulatif des principaux plafonds fiscaux, exercice d’imposition 2027 – revenus 2026 (23 December 2025), Wolters Kluwer (secondary source). 2027 amount: not yet published. This entry will be updated as soon as it is.

Worked example

For 2026 income, the tax-free amount of €11,550 falls in the first bracket (25%) of the scale specific to the tax-free amount: it reduces your tax by €11,550 × 25% = €2,887.50. With one dependent child, the tax-free amount rises by €2,130.

In Dutch: belastingvrije som

On a Dutch-language tax return, tax assessment notice (aanslagbiljet) or letter from the tax authorities, the tax-free amount is called ‘belastingvrije som’; on French-language ones, ‘quotité exemptée d’impôt’. Also called tax-free allowance in English.

Dutch term taken from: FPS Finance, Wolters Kluwer (Jef Wellens) (secondary source).

Not to be confused with…

  • Lump-sum professional expenses: the part of your income that the tax authorities automatically treat as professional expenses, without proof: 30%, up to €6,070 a year in 2026.
  • Reductions for dependants: the reductions for dependants lower the withholding tax deducted every month when you have children or other dependants.

Calculate it for your situation

What you will get back or pay on your 2026 income: reform, pension savings, childcare, donations and old mortgage loan included.

Tax refund or tax to pay?

Related terms

Sources

Parameters in force on 1 October 2026. Each parameter links to its source, the official one where it exists; a secondary source is flagged as such.