Tax credits for freelancers in 2026: how much you really get
Written by Ilias Aarrass6 min read · Last reviewed on 
Written by Ilias Aarrass6 min read · Last reviewed on Looking only at the tax brackets, you structurally overestimate your bill. Between the calculated tax and what you actually pay sit the tax credits: fixed discounts nearly every freelancer receives. The two main ones, the general credit and the labour credit, add up to almost 8,800 euros in 2026. They are applied automatically, but understanding how they build and phase out explains why an extra euro of profit is sometimes taxed more heavily than the bracket rate suggests.
The general tax credit: for everyone, but not forever
The general credit is at most € 3,115 in 2026. Everyone with box 1 income qualifies, but above € 29,736 it phases out at about 6.4 cents per extra euro, reaching zero around € 78,426. For you as an entrepreneur, your aggregate income counts: profit after the entrepreneur allowances and SME exemption plus any other income.
The labour credit also covers your profit
A persistent misunderstanding is that the labour credit is for employees only. It covers all earned income, and business profit belongs to that. In 2026 the maximum is € 5,685. The credit builds as you earn more, peaks between roughly € 30,000 and just over € 45,000 of earned income, and above that phases out at about 6.5 cents per euro until vanishing around € 132,920. Together with the general credit's phase-out, this explains why the marginal burden between roughly € 40,000 and € 80,000 exceeds the 37.56% bracket rate: every extra euro of profit also costs a slice of credit.
Worked example: € 40,000 profit
This is the effect in a typical freelance year, with the self-employed deduction:
Worked example: € 40,000 profit in 2026
- Taxable profit after deductions and SME exemption
- around € 33,900
- Tax per the brackets
- around € 12,100
- General tax credit
- around € 2,850
- Labour tax credit
- € 5,685
Result: About € 3,600 of income tax remains, under 9% of profit. You do separately pay the healthcare contribution on your profit
What to do with this (and what happens by itself)
No application needed: the credits are applied automatically in your return and your provisional assessment. What you do watch: do not reserve too tightly in years of growing profit, because the double phase-out makes tax rise faster than revenue growth suggests; use the rules of thumb in how much to set aside. If you also earn wages besides your business, read part-time freelancing besides employment: the payroll credit at your employer and the credits in your return must align. The full calculation from profit to assessment is in box 1 income tax.
Frequently asked questions
Do the credits also count for the healthcare contribution?
No. The healthcare contribution is a separate levy on profit with no credits applied. Even at zero income tax a Zvw assessment can follow.
Do I get the credits as a starter with a small profit?
Yes, and precisely then they are powerful: at modest profit the credits often bring income tax to zero. Filing remains mandatory and wise even then, for instance to recover payroll tax withheld from a side job.
My tax partner has no income. Is the general credit paid out to them?
The payout of the general credit to the lower-earning partner has been phased down to zero for most people; only those born before 1963 retain an exception. Do not count on it.
Do the amounts change every year?
Yes, maxima and thresholds are adjusted annually in the Tax Plan. The amounts here apply to 2026; the build-up and phase-out mechanics stay the same year to year.
This article provides general information based on the rules known for 2026 and does not replace personal tax advice. For your specific situation, we're happy to take a look with you.
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