Tax plan citizens 2024: These changes are imminent for private individuals

The government is resigning, therefore there are no major surprises in the Tax Plan for 2024 presented on Budget Day. Nevertheless, there are plenty of resolutions that could have an impact on your financial situation. Now that the House of Representatives (Tweede Kamer) has approved the Tax Plans for the coming year at the end of October, we can update you on the proposed changes and Tax Plans for the coming year.

Please note: the Tax Plan is not yet final. The Senate has yet to decide on this. It is customary for proposed plans for legislative changes to be made concrete in the new year. Lupacompany will keep you informed about this.

Image: © ANP - Remko de Waal

Lower taxation of incomes

In 2024, people will pay less tax on their income and have more net income leftover. At 9.9%, the annual indexation of tax credits and bracket limits for 2024 is much higher than in previous years. As a result, you will pay less tax on your income in 2024. The highest rate for bracket 2 for income tax will be 33%. For bracket 3, the rate will increase to 36% in 2024. The government emphasizes that pensioners and salaried employees in particular will benefit, but the adjustment will affect everyone with an income, including, for example, self-employed people and benefit recipients.

Increase in labour tax credit

In addition to the indexations for 2024, the planned increase in the employment tax credit of €115 also ensures that people in paid employment have more net income left over: Workers with a salary from the minimum wage up to almost € 40,000 will benefit.

Higher incomes rise slightly on average

People with a higher income will also benefit next year. Several measures contribute to this. The government will provide extra support for people with a lower income, to increase their purchasing power, and the brakes will be put on measures for higher incomes.


Reimbursement of public transport card (OV-pass) and payroll tax exemption

From 1 January 2024, the government wants to make it easier for employers to reimburse or provide a public transport card exempt from payroll tax to employee's. On condition that the employee also uses the public transport card for business purposes. As an employee with a public transport card, this should leave you with more net income.

Adjustments on fees for WOZ objections (valuation of property) and bpm (vehicle registration tax)

In order to make it financially less attractive for objection agencies to start proceedings against WOZ and bpm decisions, the government wants to pay compensation directly to citizens or companies that object. Compensation for legal costs and non-material damages in these objections is likely to be reduced. Although initially not included in the Budget Memorandum, the House of Representatives established in October that this rule will also be applied to other regular appeals against administrative sanctions.

From 1 to 2: Significant Interest Rate changes (aanmerkelijk belang)

Do you have an interest of 5% or more in a bv or nv? From 2024, there will be two brackets in bracket 2 for income tax, 24.5% and 31%. For bracket 2 income up to € 67,000, the rate of 24.5% per person will apply. If  bracket 2 income is higher, this is taxed at a rate of 31%.

Tobacco tax increases

The government wants to increase the tax (accijns) on tobacco. If the Senate agrees, a pack of cigarettes will cost about €10. The proposed raise of tax on alcohol, was rejected by the House of Representatives, before they agreed on the Tax Plan.

Continuation of discount on fuel excise duty

The proposed abolition of the temporary discount on fuel as of 2024 will also not go ahead. The House of Representatives decided that the excise duty discount for petrol, diesel and LPG applicable from 1 July 2023 will be extended for one more year. The regular indexation will also not be implemented as of 1 January 2024. As a result of this change in the Tax Plan, you will pay about 20 cents per litre less at the pump than was proposed in the Budget Memorandum.


Adjustments bracket 3

From 2027, there will be a new and definitive system for box 3. People will pay tax on the actual return on capital. Until the new system is in place, the Tax and Customs Administration will calculate with return percentages that should approach actual percentages for saving, investing and borrowing where possible.

Preparing for 2024

As mentioned, the Senate still has to agree to the plans before they become final. But you may want to align your policies and forecasts with the intended changes. Moneywood is happy to help you with that.

Do you want to read more about Budget Day and the proposed tax plans? On this webpage You can find official information from the Dutch Government, in English.