The tax-exempt amount below which no personal income tax is deducted will increase gradually, starting in 2026, to reach €13,700 by 2029, excluding indexation, Finance Minister Jan Jambon told the House Finance Committee on Tuesday.
Responding to questions from parliamentarians after his political policy address, Jambon explained that the government aims to increase the gap between work and inactivity to over €500 net per month. One way to achieve this is by raising the tax-exempt amount, currently set at €10,570 for the 2024 income year (2025 tax year), he said.
Other proposed measures include raising the maximum amount for meal vouchers to €10, then €12. However, all other vouchers will be abolished. The employment bonus will be strengthened, and the special social security contribution (CSSS) will be reduced.
Jan Jambon also mentioned a reform of the mobility budget, which will eventually replace the existing tax regimes that apply to home-work travel.
With regard to the capital gains tax, the finance minister said, “such a complex tax will take time."
I urge you to be patient,” he told legislators.
He confirmed that the target implementation date remains 1 January 2026.
