The 2024 tax rules

The tax system changes every year! And as you’ve probably heard, there are going to be some tax changes for 2024 as well. Some rates are going down, others are going up. Rates are changing in all three boxes, but the biggest change is in Box 2. Starting in the new year, there will be a two-bracket system instead of the flat rate we knew in 2023. Here we explain everything about this two-bracket system, look at what exactly is changing for each box, and discuss the 30% rule that will also change in 2024.

What changes for Box 1?

This first box focuses on taxable income from work and home. Consider salaries or profits made from your own business, but it also looks at mortgage interest and pension contributions. These can reduce the tax owed for Box 1. The rates in Box 1 change little, but the limits do move.

The first bracket increases slightly in terms of rate. It stood at 36.93% in 2023 and is rising 0.04%. The second bracket will remain at the same rate in 2024 as it was in 2023, at 49.50%. The most significant change is in the threshold for the second bracket. In 2023, you were in the second bracket starting at an income of €73.031. As of January 1st, you’re in that final bracket from €75.518.

What changes for Box 2?

The second box covers taxable income from substantial interests, such as gains from stocks. In 2023, this box was still subject to a flat rate of 26.9%. This is going to change completely starting January 1st. The flat rate will be removed and replaced by a two-bracket system. The limit for the first bracket stands at €67.000. The rate associated with this bracket is 24.5%, lower than the 2023 flat rate. Amounts above €67.000 end up in the second bracket. This rate is a lot higher than the former 26.9%. In fact, it rises to the 33% mark. 

What changes for Box 3?

The last box holds taxable income from investments and savings. In short, your assets: savings, investments, and extras such as a second home. It also includes your possible debts. The rates for bank balances and debts aren’t yet known. On other assets, we know that the rate will drop from 6.17% in 2023, to 6.04%.

What will happen to the 30% ruling?

A plan has been made to slowly but surely cancel the 30% ruling. This will happen in steps over five years. The first step will be made on January 1st. For twenty months, this ruling can be set at a maximum of 30% of the salary. After these months, the percentage will drop to a maximum of 20%. This ruling remains for another twenty months, after which the percentage drops again to a maximum of 10%. Once twenty months have passed, the 30% ruling has also ceased completely.

We are happy to help!

These are the most important 2024 tax rules. We realize that it may still be unclear what all these numbers and percentages could mean for you. Therefore, don’t hesitate and let us help you. Feel free to contact the Tax Savers for any questions and additional information, that’s what we’re here for! Fill in the contact form or call us at 020-217012.

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