Belgium is currently implementing a broad reform of personal income taxation. The measures affect the tax-free allowance, dependent children, marital quotient (dependent spouse allowance), replacement income, company directors and several other taxpayer categories.
Many of the changes take effect from income year 2026, meaning they will first be reflected in the Belgian income tax return filed in spring 2027. Other measures will be introduced progressively over the following years.
Below, we summarise the main changes that may be relevant to private clients and company directors.
1. Gradual increase of personal tax-free allowance
Every taxpayer is entitled to a basic tax-free allowance: the first portion of taxable income on which no personal income tax is charged.
For income year 2025, the indexed tax-free allowance amounts to €10,910. For income year 2026, it increases to €11,180. The allowance will subsequently rise in stages, with the intention of reaching an amount of €15,600 by income year 2030.
The increase should generally result in a lower personal income tax liability. However, the precise benefit will obviously depend on the taxpayer’s income level and personal situation.
Effective from: income year 2026 (tax year 2027)
2. Tax-free allowances for dependent children
The additional tax-free allowance for dependent children will also be reformed.
- One or two dependent children
The allowances for taxpayers with one or two dependent children will gradually increase. The objective is to arrive at a more equal tax benefit per child, ultimately corresponding to €2,650 per child by income year 2029.
- Three or more dependent children
For families with three or more dependent children, the indexation of the existing allowances will temporarily be frozen at the income year 2025 level. This indexation freeze will apply during income years 2026 through 2029.
The reform may therefore be relatively favourable for families with one or two children, while larger families may see their allowances remain unchanged in nominal terms during the transition period.
Effective from: income year 2026 (tax year 2027)
3. Other allowances temporarily frozen for dependent persons
Certain additional tax-free allowances relating to dependent persons living in your household will also be temporarily frozen.
This concerns, among other things, allowances for:
- care-dependent persons aged 66 or older;
- dependent parents or grandparents;
- other dependent relatives up to the second degree.
The additional allowance for a taxpayer with a recognised disability is not included in this general freeze.
Effective from: income year 2026 through income year 2029.
4. Additional allowance for single parents restricted to ‘genuinely’ single taxpayers
Under the current system, taxpayers who are taxed as single persons may qualify for an additional tax-free allowance as a single parent, even when they are living together informally with a partner.
In future, this allowance will be restricted to parents who are genuinely living alone. A parent who is legally taxed as single but is factually cohabiting with a partner will no longer qualify. This measure does not take effect immediately in 2026.
Effective from: income year 2029 (tax year 2030)
5. Gradual reduction of ‘marital quotient’ (dependent spouse allowance)
The marital quotient allows part of one spouse’s professional income to be (automatically) attributed to the other spouse when that spouse has little or no professional income. It can significantly reduce the household’s combined tax liability.
From assessment year 2027, the maximum amount that may be transferred under the marital quotient will gradually be reduced. The stated objective is to make taxation more neutral, irrespective of whether taxpayers are married, legally cohabiting or living alone. The phase-out will differ depending on the couple’s circumstances.
- Working-age couples: for couples who are still considered to be of working age, the maximum transferable amount will be reduced by half over four assessment years.
- Pensioners: for pensioners, the transition will be much slower. The marital quotient will be phased out over almost 20 years, with complete abolition currently scheduled from assessment year 2046.
The impact may be material for households in which one spouse has a substantially higher income than the other.
Effective from: income year 2026 (tax year 2027)
6. Doctoral scholarship recipients treated as single taxpayers
A married or legally cohabiting doctoral scholarship recipient will, under the new rules, be treated as a single taxpayer when the scholarship exceeds the applicable tax-free allowance. In that respect, their tax status will be comparable to that of international civil servants, whose salaries are exempt from Belgian national income tax.
This may affect the taxation of the couple and, in particular, the possible application of the ‘marital quotient’ or other household-based tax advantages.
Effective from: income year 2026 (tax year 2027)
7. Higher tax work bonus for lower-paid employees
The Belgian tax work bonus reduces the personal income tax payable by employees on relatively low salaries. The percentages will be increased in stages, with the largest increase applying to employees with the lowest remuneration.
| Salary category | 2025 | 2026 | 2028 |
| Lower salaries – component A | 33.14% | 33.14% | 35.00% |
| Very low salaries – component B | 52.54% | 63.00% | 72.00% |
For very low salaries, the percentage therefore increases substantially from income year 2026. The measure is intended to increase the difference between income from employment and replacement income.
8. Special social security contribution calculated individually from 2028
The special social security contribution is currently calculated by reference to household income when the final personal income tax assessment is issued. Under the reform, it will instead be calculated on an individual basis. The maximum contribution will also be reduced by half.
The impact is expected to be particularly noticeable for single taxpayers. The advance amounts withheld through payroll will also be adjusted to reflect the new calculation method.
Effective from: income year 2028 (tax year 2029)
9. Adjustment to the municipal surcharge calculation
Belgian municipalities levy an additional municipal tax calculated as a percentage of the federal personal income tax due. Because the increase in the tax-free allowance would otherwise reduce the federal tax base—and consequently municipal revenues—the calculation basis used exclusively for the municipal surcharge will be adjusted by an uplift factor.
This measure is intended to protect municipal revenues and reduce the need for municipalities to increase their municipal surcharge rates.
Effective from: income year 2028 (tax year 2029)
10. Gradual abolition of tax reduction for unemployment benefits
The specific tax reduction for unemployment benefits will be gradually reduced from income year 2026.
It is scheduled to disappear entirely from: income year 2029 (tax year 2030).
Temporary transitional protection will be provided for genuinely single parents with one or two dependent children. The withdrawal of this reduction may result in unemployment benefits becoming more heavily taxed, even where the gross benefit itself remains unchanged.
11. Reduced tax relief for higher pensions
The tax reduction applicable to pension income will become subject to an income ceiling.
For tax year 2027, the reduction will be completely withdrawn where the pensioner’s total taxable income exceeds €72,310. This amount is based on an index-linked statutory threshold. Pensioners below the threshold may continue to benefit from all or part of the reduction.
The government expects the general increase in the tax-free allowance to compensate, at least partly, for the reduction in pension-related tax relief. Whether that compensation is complete will depend on the pensioner’s total income and personal circumstances.
Effective from: income year 2026 (tax year 2027)
12. Social integration income becomes taxable replacement income
Belgian social integration income—commonly referred to as the leefloon or revenu d’intégration—will formally be treated as taxable replacement income.
Although it will, in principle, fall within the scope of personal income tax, the income should generally continue to be neutralised through the tax reduction applicable to other replacement income.
The change is therefore primarily a change in tax classification, although the final result may depend on the beneficiary’s other taxable income.
Effective from: income year 2026 (tax year 2027)
13. Reduced minimum age for favourable tax regime for young athletes
Professional remuneration received by young athletes benefits from a separate tax rate of 16.5%, up to a statutory annual ceiling.
For tax year 2027, the indexed ceiling amounts to €16,300. The minimum age for access to this regime is reduced from 16 to 15 years. The maximum age remains 23.
Effective for remuneration paid from: 1 January 2026.
14. Separate 33% tax rate for pensioners who continue working
A separate tax regime will be introduced for pensioners who continue to work as employees after reaching their statutory pension date.
Qualifying employment income will be taxed separately at 33%, rather than being added to the pensioner’s other income and subjected to the ordinary progressive rates of up to 50%. This measure does not yet apply to income earned in 2026.
Effective for remuneration paid from: 1 January 2027.
15. Minimum director’s remuneration increased to €50,000
Small companies may, subject to various conditions, benefit from the reduced corporate income tax rate of 20% on the first €100,000 of taxable profit.
One of those conditions is that the company must generally pay at least a minimum remuneration to one individual company director. The minimum remuneration increases from €45,000 to €50,000. The €50,000 threshold will also be indexed annually going forward.
Companies wishing to retain the reduced corporate income tax rate should therefore review their director remuneration before the end of the financial year.
Where the company’s taxable profit is lower than €50,000, the minimum-remuneration test may still be satisfied by paying remuneration corresponding to the company’s taxable income, subject to the detailed statutory conditions.
Effective from: income year 2026 (tax year 2027)
16. Additional advance-tax-payment period
A fifth advance-tax-payment period will be introduced, covering payments made between 21 December and 20 February.
For company directors, however, advance tax payments made during this fifth period:
- will not reduce the tax increase for insufficient advance payments relating to the preceding income year; and
- will not generate a tax bonus for that preceding income year.
The payment will nevertheless be credited against the tax relating to the taxable period ending on 31 December during that payment window.
In practice, the impact for company directors should be limited. Companies are legally required to withhold Belgian wage tax from directors’ remuneration, and this withholding obligation cannot simply be replaced by voluntary advance tax payments.
Effective for: advance tax payments relating to tax year 2027.
What should taxpayers do?
Most measures applicable from income year 2026 will first become visible in the tax return filed in spring 2027. Nevertheless, certain points may already require attention during 2026.
In particular:
- families should review whether children or other relatives continue to qualify as dependents
- informally cohabiting single parents should anticipate the later restriction of the single-parent allowance
- married couples relying on the ‘marital quotient’ (dependent spouse allowance) should assess the gradual reduction of that benefit
- pensioners with additional income should examine the new income ceiling for pension tax relief
- and companies applying the reduced corporate income tax rate should review the remuneration paid to their company director(s).
The precise effect of the reform will obviously always depend on the taxpayer’s income, family composition, pension position and other personal circumstances.
This article provides a general overview based on the legislation and published information available in July 2026. Indexed amounts, implementing rules and transitional provisions should be verified for the relevant income and tax year.