The tax-free allowance in Belgium will rise to €15,600 by Fiscal 2030, Finance Minister Jan Jambon announced in Parliament on Wednesday.
Currently set at €10,570 per year in 2024, the allowance will increase incrementally to €14,450 in 2029 and finally reach €15,600 by 2030.
This adjustment is part of the government’s proposed fiscal reform, aimed at ensuring that workers take home at least €500 more per month compared to those not in employment, Jambon explained during a parliamentary committee meeting.
The measure is expected to cost the federal government €372.4 million in 2026, just under €2.5 billion in 2029, and €3.5 billion in 2030.
Jambon highlighted that the reform would result in an average annual tax reduction of €823 per person by 2030.
The financial impact of the measure will also be shared by regional entities, local governments and communities, with the cost estimated at €1.5 billion by 2030. However, the minister assured that the budgetary effect on local governments would be neutralised.
