Deductions for self-employed professionals in 2026 in one overview
| Scheme | 2026 | Core condition |
|---|---|---|
| Self-employment deduction | €1.200 | entrepreneur for income tax purposes and meeting the hours criterion. |
| Start-up deduction | €2,123 extra | Entitlement to the self-employed person's tax deduction and meeting the additional startup conditions. |
| SME profit exemption | 12,7% | Sole trader for income tax purposes; no hours criterion. |
The fixed deduction amounts apply if you had not yet reached the state pension age on 1 January; otherwise, half applies. The exemption is calculated after entrepreneurial deductions and also reduces a loss.
What are deductions?
Deductions lower your taxable profit or taxable income. We distinguish between business expenses, entrepreneurial schemes and personal deductions. Each group has its own conditions. The amount of a deduction is not the same as the amount you save on tax.
Business schemes
Self-employment deduction
If you meet the hour criterion and are an entrepreneur for income tax purposes, you can make use of the self-employed deduction. This is a fixed amount that lowers your profit and therefore reduces your tax burden. The self-employed deduction is especially interesting in the first years of your business or when your profit is not yet very high. If you just fall short of the hour criterion in a year, this deduction lapses. Therefore, plan your hours consciously and keep your records well.
Start-up deduction
Have you just started out as a self-employed professional? Then, in addition to the self-employed person's allowance, you can also make use of the start-up deduction. The conditions are that you have not applied the self-employed person's allowance more than twice in the past five years and were not an entrepreneur (partly) during that period. If you are not yet making much profit in your early years, the start-up deduction can make a big difference: you reduce your taxable profit and have more money left over to invest in your business.
SME profit exemption
The SME profit exemption applies to business owners for the purposes of income tax and is not subject to any hours criterion. In 2026, the percentage will be 12.7% of the profit after the entrepreneur’s allowance. In the event of a loss, the tax loss is actually reduced: a loss of €10,000 leaves a net loss of €8,730. This follows from the rules for the SME profit exemption.
Investment deduction
If you invest in business assets, you can make use of an extra investment deduction. In the sections below, you will read which three forms of this are most interesting for self-employed people.
Small-scale investment deduction (KIA)
The KIA encourages smaller investments. If you invest above the threshold and below the upper limit, you get an extra deduction percentage. Spread investments smartly over several years to stay within the favourable limits. If you sell the asset within five years, a disinvestment addition may follow.
Energy investment allowance (EIA)
The EIA applies to energy-efficient business assets on the Energy List. You get an extra deduction on top of the depreciation. Report your investment on time and check that you meet the technical requirements.
Environmental investment allowance (MIA)
The MIA provides an additional deduction for qualifying environmentally friendly investments listed on the Environmental List . The percentage depends on the category. Notify the investment on time and check whether combining it with other schemes, such as EIA, is permitted.
Working partner deduction
Does your tax partner regularly work in your business, with little or no remuneration, and do you meet the hour criterion? Then you can use the working partner deduction. The amount of the deduction depends on the number of hours your partner contributes. Record those hours properly; clear records will prevent discussions with the tax authorities afterwards.
WBSO scheme
For the R&D deduction, you must meet the hours criterion, have an R&D declaration from the RVO, and spend at least 500 hours yourself on recognised research and development work. Simply working on a new idea therefore does not automatically grant the right to a deduction. View the conditions for R&D tax credit.
Business cessation relief
When completely discontinuing a business, cessation relief may apply, up to a maximum of €3,630 over your lifetime and never more than the cessation profit. If you did not use the full maximum previously, the remainder may be available upon a later cessation. See the conditions for business cessation relief.
Business expenses
Business expenses can reduce your profit, but not every business outlay is fully tax-deductible. Restrictions apply to food, drink and representation, among other things; read the explanation about limited deductible expenses. In the case of mixed use, you only deduct the business portion. Purchases that you use for several years sometimes have to be processed as business assets and depreciated.
Car costs
For business trips with a private car, you may deduct €0.25 per kilometre in 2026. This includes fuel, parking and tolls, among other things; you do not deduct those separately again. Read the explanation of mileage allowance. Whether you can and want to treat a car as private or business use depends on its usage and your figures. Compare the consequences for business car or private.
Telephone charges
Business telephone charges are deductible if you use the phone for your business. If you use one phone for both private and business purposes, you may only deduct the business part of the costs. The same applies to home internet: only the part that is demonstrably used for work is deductible. Equipment such as smartphones, laptops and tablets may be purchased on a business basis; if the price is above the investment limit, you can write it off over several years.
Workplace (home)
Costs for a home workspace and the furnishing thereof are usually not deductible. First check whether the space meets the tax conditions. A private entrance alone is not sufficient. Read the explanation about allowable working from home expenses. Equipment such as a business laptop must be assessed separately.
Personal deductions
Personal deductions are assessed separately from business profits and have their own conditions. For deductible annuity contributions, for example, your annual pension contribution allowance or carry-forward allowance is relevant.
Disability insurance
Premiums for a disability insurance are usually deductible as income expenditure. On the other hand, the benefit is taxed later. Therefore, check your policy carefully and process the premiums consistently in your tax return.
Deductions for owner-occupied property
If you pay mortgage interest for your own home, you may deduct it within the rules of the owner-occupied home scheme. Certain financing costs are also deductible. While this is not an entrepreneurial deduction, it does affect your overall tax burden.
Personal deductions
Personal deductions include partner alimony, specific care expenses and gifts that meet the conditions. These items are not directly linked to your business, but they do reduce your taxable income. As a result, they remain interesting even in years when your profits are lower.
Worked example: from turnover to taxable profit
Hypothetical example for 2026, with entitlement to the self-employed person’s allowance and without the start-up allowance: €50,000 turnover minus €10,000 business expenses gives a profit of €40,000. After the €1,200 self-employed person’s allowance, €38,800 remains. The SME profit exemption amounts to 12.7% × €38,800 = €4,927.60. The taxable profit is €33.872,40. This does not yet represent the tax due; other income, personal allowances, tax credits and the Health Insurance Act (Zvw) have not been taken into account.
Rate adjustment deductions
If you earn (partly) in the highest tax bracket, many deductions are no longer offset at that high rate, but at a lower flat rate. As a result, every euro of deduction yields less benefit. This applies to the self-employed deduction, SME profit exemption, WBSO, mortgage interest and personal deductions, among others. Keep this in mind when planning: sometimes it is smarter to spread investments or pension contributions over several years.
Tax return tips
Want to file your tax return smoothly and correctly? These practical tips will help you prepare properly and avoid common mistakes when completing your tax return.
Ensure order in your administration: record all your business expenses and keep receipts and invoices carefully.
Use a calculation tool: calculate deductions for self-employed and test scenarios with or without investments or pension contributions.
Keep good records of your hours: This is how you can convincingly demonstrate the hours criterion when asked by the Tax Office.
Plan big purchases smartly: Determine whether investments are better made this year or next year to benefit from the KIA.
Rate your car: Calculate whether private or business use is more fiscally advantageous and record the choice.
Engage an accountant: an experienced adviser avoids mistakes and often sees deductions you miss yourself.
Would you like help assessing your deductions? See what services our accounting package includes.
Frequently Asked Questions
What deductions are there for self-employed people?
Important deductions include the self-employed deduction, start-up deduction, co worker deduction, SME profit exemption, investment deduction and business expenses.
What expenses are deductible for self-employed people?
Business expenses may be deductible, but limitations and exclusions apply. In the case of mixed use, only the business portion counts. Some purchases are depreciated over several years, so a business payment is not automatically fully deductible immediately.
How can I pay less tax as a self-employed person?
Use all deductions, plan investments smartly and calculate your benefit with a tool for deductions zzp.
