As of 2024, the maximum 30% ruling tax free allowance will be capped, by limiting the basis of this tax-free allowance to the regulated maximum remuneration for the public sector (2023: EUR 223,000 gross annual remuneration, which is indexed annually).

Transitional rules apply for individuals who received the tax free allowance of the 30%-ruling in the Dutch payroll administration during the last wage tax period (loontijdvak) of 2022 (in practice: December 2022). Under these transitional rules, the tax free allowance cap will only apply as of 1 January 2026 (grandfathering). For individuals who will have the 30% ruling as per 2023, the cap of the tax free allowance will apply as per 1 January 2024.