Prinsjesdag 2026: Dutch Households Face Lower Spending Power Despite €1.5 Billion Compensation – Here’s What Expats Need to Know

As the Dutch cabinet prepares to present its 2026 budget on Prinsjesdag (the third Tuesday of September, 15 September 2026), leaked plans reveal that virtually all households in the Netherlands will see a decline in spending power next year – even with a €1.5 billion compensation package on the table. For internationals living in the Netherlands, particularly those on residence permits, this carries direct consequences for household budgets, tax obligations, and energy costs.

Leaked Budget: Lower Spending Power Ahead

According to leaked Prinsjesdag documents published by NU.nl on 11 September, the cabinet’s own calculations show that nearly all income groups will lose purchasing power in 2026. The decline comes despite a €1.5 billion compensation package that the government says is meant to soften the blow of rising costs and tax increases.

The exact distribution of that compensation is not yet public, but the overall picture is stark: the average household is expected to have less to spend next year, even after accounting for the compensation measures.

Tax Hike on Workers: €4 Billion More

A separate report from NU.nl, published on 12 September, shows that income tax for workers will rise by a net €4 billion in 2026. This is not a new tax, but a combination of bracket adjustments and the phasing out of certain tax credits – meaning that anyone with a job in the Netherlands will likely take home less per month.

For expats and international workers, this is especially relevant. The 30% ruling, which allows qualified expats to receive 30% of their salary tax-free, may offer some insulation, but the broader tax increase applies to all taxable income. Anyone filing a Dutch tax return (aangifte inkomstenbelasting) for 2026 should expect a higher tax bill unless the final budget introduces offsetting measures.

Gas Supply: Enough for Winter, But Costs Still a Concern

On 14 September, the cabinet announced that the Netherlands has enough gas for the coming winter, despite storage reserves being at historically low levels – just 52% full as of September, compared to a previous target of nearly 80%. The European Commission lowered the storage target to 64% in response to price spikes caused by the war in Iran.

Climate and Energy Minister Stientje van Veldhoven (D66) stated that reduced consumption (down about 25% since the Russian boycott) and continued imports of liquefied natural gas (LNG) mean the country will not run out. But the low storage level could push up energy prices if winter is harsh. For expats renting homes with variable energy contracts, this is a factor to watch: higher gas prices mean higher monthly bills, which eat into spending power.

What Does This Mean for Expats?

Practically, here is what you should do:

• Check your tax withholding – If you work in the Netherlands, your employer will adjust payroll taxes in January 2026. Your net salary may drop. Use the Belastingdienst’s online tool to estimate your 2026 tax liability.
• Review your energy contract – If you are on a variable tariff, consider locking in a fixed rate before winter. If you have a fixed contract, check when it ends.
• Keep an eye on toeslagen (allowances) – The €1.5 billion compensation may be distributed through the toeslagen system (healthcare allowance, rent allowance, child budget). If you qualify, make sure your details are up to date on the Toeslagen portal.

The Bigger Picture: Coalition Arithmetic

The final budget, to be presented on Prinsjesdag (15 September), must still be debated in the Tweede Kamer (the lower house of parliament). The coalition parties – VVD, D66, CDA, and ChristenUnie – have different priorities, and the leaked figures may change. Expect last-minute tweaks to the compensation package or tax measures to please coalition partners.

For now, the message is clear: 2026 will be a tighter year for nearly everyone in the Netherlands, expats included.