Belgium just passed its most significant personal income tax (IPP) overhaul in a generation. Voted by the Chamber of Representatives on 9 July 2026, the law signed by Finance Minister Jan Jambon reshapes how workers, freelancers and company directors are taxed progressively between 2026 and 2031.
Here is a clear breakdown of what changed, what it means for your net salary, and what action (if any) you need to take.
The reform at a glance
The law introduces five major changes:
- Higher tax free allowance (quotité exemptée), more income untaxed
- Stronger employment bonus (bonus à l'emploi), bigger benefit for lower salaries
- Progressive elimination of the conjugal quotient, affects married couples (one income)
- Return of copyright regime for IT developers, a significant opportunity
- ATN cap at 20% of gross salary, limits certain benefit strategies
Most measures kick in gradually between 2026 and 2030.
1. Higher tax free allowance, every worker benefits
The basic tax free slice of your income is being raised progressively from €10,910 (2025) to €14,450 (2030), with a further increase to €15,600 planned for 2031.
| Tax year | Tax free allowance | Approx. monthly net gain |
|---|---|---|
| 2025 (reference) | €10,910 | |
| 2026 | ~€11,530 | +€15 to +€25/month |
| 2028 | ~€12,800 | +€35 to +€50/month |
| 2030 | €14,450 | +€70 to +€100/month |
The gains are modest in 2026 but build significantly toward 2030. For a consultant on €4,000 gross, expect roughly +€20/month extra net in 2026, growing to nearly +€85/month by 2030.
Tip
2. Stronger employment bonus, good news for lower salaries
The employment bonus (bonus à l'emploi) reduces the income tax you owe if your taxable monthly income stays below a certain threshold. The reform strengthens this bonus in two stages:
- From 2027: the rate for very low salaries rises from 52.54% to 63%.
- From 2029: it reaches 72% for very low salaries, and 35% for low salaries (up from 33.14%).
In practice, if your gross salary is below €2,500/month, you will pay noticeably less income tax as the reform phases in.
Rule of thumb
3. Conjugal quotient, being phased out
The conjugal quotient allowed married couples where one partner earns little or nothing to transfer part of the higher earner s income to the lower earner for tax purposes.
This mechanism is being progressively halved between 2026 and 2029 for non retired couples.
| Year | Maximum conjugal quotient |
|---|---|
| 2025 | €12,550/year |
| 2026 | ~€11,000/year |
| 2029 | ~€6,275/year (approx. half) |
The impact is partially offset by the higher tax free allowance. But for households where one income is significantly higher than the other, there will be a net tax increase.
Warning
4. Copyright regime returns for IT developers, a real opportunity
Since a Constitutional Court ruling in 2024, software developers could no longer use the copyright regime. The July 2026 reform reopens this regime for IT professionals from 2026, under strict conditions.
Key conditions
- The work must be original and creative (not purely functional or maintenance).
- The rights must be contractually transferred or licensed to a client or employer.
- There is a cap on the amount eligible, calculated as a percentage of total professional income.
Tax advantage
Income qualifying under the copyright regime is taxed at a flat 15% withholding tax (précompte mobilier), rather than at your marginal IPP rate which can reach 50%. The effective tax saving can be substantial for consultants billing between €80,000 and €150,000 per year.
Tip
5. ATN cap at 20% of gross, affects some benefit packages
The reform introduces a new rule: the total value of fixed rate benefits in kind (avantages de toute nature or ATN) cannot exceed 20% of your gross salary.
For most umbrella consultants, this has no impact, their ATN (mainly the company car) stays well within 20% of their gross salary. For ISOC directors or highly optimised salary structures, very high ATN packages may need to be reviewed.
Rule of thumb
6. VVPR bis rate increase, already in force since 1 July 2026
The VVPR bis dividend withholding rate rose from 15% to 18% for distributions made from 1 June 2026 onward. The liquidation reserve rate also increased from 6.5% to 9.8%.
Warning
What changes by status, quick reference
| Your status | Key change | Action |
|---|---|---|
| Umbrella payroll (BSH) | Higher net from quotité exemptée | None, automatic |
| Umbrella payroll (BSH), married 1 income | Slight net decrease (conjugal quotient) | Already reflected in BSH simulator |
| Freelancer (IPP) | Copyright regime reopened, entrepreneur deduction from 2027 | Explore copyright eligibility with your accountant |
| ISOC director | VVPR bis 18%, ATN cap 20%, higher minimum salary €50,000 | Review remuneration split |
| ISOC director | Copyright regime reopened for IT | Assess eligibility with your accountant |
Timeline, when does each measure kick in?
| Measure | 2026 | 2027 | 2028 | 2029 | 2030 |
|---|---|---|---|---|---|
| Quotité exemptée | Step 1 | Step 2 | Step 3 | Step 4 | Full |
| Employment bonus | Step 1 | Step 2 | Full | Full | |
| Conjugal quotient reduction | Step 1 | Step 2 | Step 3 | Half | |
| Copyright regime (IT) | Open | Open | Open | Open | Open |
| ATN 20% cap | Active | Active | Active | Active | Active |
| Entrepreneur deduction (IPP) | €620 cap | Active | €830 cap | Active | |
| VVPR bis 18% | Since 1 June | Active | Active | Active | Active |
Bottom line for IT consultants
For most umbrella payroll consultants, the 2026 reform is mildly positive: a small net salary increase from the higher tax free allowance, with no action required. The conjugal quotient reduction partially offsets this for married one income households.
For freelancers and ISOC directors, the reopening of the copyright regime is the most significant opportunity. Combined with the higher VVPR bis rate making dividends less attractive, 2026 is a good time to review your overall compensation structure.
The BSH simulator is already updated to reflect all 2026 changes, including the new quotité exemptée brackets, the reduced conjugal quotient, and the VVPR bis rate of 18%.
Informational only. Based on Belgian legislation as adopted on 9 July 2026. Several measures require royal decrees for full implementation. Consult a certified accountant for advice specific to your situation.
Sources
- Law of 9 July 2026, Reform of Personal Income Tax (IPP), Belgian Chamber of Representatives
- KPMG Belgium, IPP Reform overview (kpmg.com/be)
- Securex Lex4You, IPP reform analysis, July 2026
- OECCBB, Synthesis of the law of 10 July 2026
- Partena Professional, VVPR bis reform analysis
- SPF Finances, Official tax brackets 2026