Budget Day 2027: what could change for you?

Budget Day 2026 was not without controversy this year. The budget had been under fire for weeks before the third Tuesday and public protests colored the news around the presentation of the financial plans for 2027. Even after Budget Day, the situation remains restless and the political support that the cabinet needs to implement the plans is not yet guaranteed. Nevertheless, there is now a budget for 2027. What might you notice as a private individual? Below we walk through the most significant proposals and how they could impact you.

Purchasing power

On average, the situation is deteriorating, but thankfully not by much, this was the message on Budget Day. Purchasing power is expected to fall by 0.1% in 2027. There are some striking differences between households: For people with a low income, an increase of 0.2% is expected. Pensioners will gain an average of 0.3%. Middle incomes are expected to face a decrease of 0.1% and higher incomes by 0.2%. Higher taxes are a major cause of the decline, according to reports. The government is therefore allocating extra money to limit the decline in purchasing power.

According to Rabobank , the slight decline in purchasing power that was presented on Budget Day is too optimistic. Economists argue that purchasing power will not fall by 0.1%, but by 0.8%. The cause? Due to ongoing unrest in the Middle East, oil and energy prices will rise further and inflation will rise to 3.8%. And we will feel that more in our wallets than the government expects, according to Rabobank.

Income tax

Adjustments will be made to Income tax. This will go up as intended. But the increase will be moderated slightly. Despite the moderation, the new rates could have an impact on disposable income: "Without these plans, people would benefit by an average of more than one percent," according to Nibud. Income tax will go up because the tax brackets and tax credits will not be fully compensated for inflation. In 2027, the inflation adjustment standard will be applied for 48%. In 2028, this is likely to be 12.2%. The rates from the first and second brackets will be increased by 0.06%.

Box 3

For people with savings, investments or other assets, box 3 remains an uncertain story for the time being. The coalition parties have not been able to reach agreement on the future of the wealth tax before Budget Day. The decision on the bill has therefore been postponed. The cabinet is now aiming for a solution in the Spring Memorandum, in about six months. This also leaves it uncertain whether the new system that should apply from 2028 can actually be introduced in time.

AOW

An important change for future pensioners will not go ahead. The planned cutbacks, in which the state pension age would be linked one-to-one to the average life expectancy, will not be reflected in the budget. This also eliminates a cut of more than €2.7 billion per year that was anticipated with this.

WW

Concerning the proposed changes to unemployment benefits. The planned halving of the maximum duration of unemployment benefits will be postponed by one year until 2029. The government planned to reduce the maximum benefit period from 24 to 12 months. Until 2029, you will therefore remain entitled to unemployment benefits for up to two years.

Deductible and health insurance premium

The mandatory deductible for healthcare costs will rise to €400 in line with inflation in 2027. In addition, the health insurance premium is expected to increase by € 12.50 per month. This brings the average health insurance premium to € 169 per month.

Housing

€7 billion is being made available for affordable housing up to and including 2035. The budget memorandum explains how this amount should be spent according to the government. For example, about €2.3 billion will go to a scheme in which municipalities receive €7,000 per affordable home. In addition, an extra €650 million will be allocated to another subsidy scheme for municipalities and €940 million will go to large-scale housing locations. Extra money will also be allocated to homes for the elderly, mid-market rental homes and student housing.

Fuel

The discount on excise duties on petrol and diesel will be extended by one year. This means that the excise tax discount will in all likelihood remain in place until January 1st  2028.

From proposal to policy?

The Budget Memorandum has been presented, but that does not mean that all plans are final. The discussion of the various budgets should show which plans will ultimately receive sufficient support. For you as a private individual, this means above all: A direction has been set for new measures, but a lot may still change in the coming months. Or as Minister Heinen said at the presentation of the Budget Memorandum: "the budget is not set in stone". As soon as it becomes clear which plans will actually go ahead, you will be able to read about it at Lupacompany. Until then, if you would like to read more about the (fiscal) plans that the Jetten cabinet presented during the third Tuesday, on this page you can find a summary of the most important measures. Prefer more depth? View the official Budget Day documents for 2027 here.