What the 2026 tax return means for you

The major tax reform that has been discussed in political circles for years is still not reflected in this year’s tax return. But that doesn’t mean nothing has changed. A series of quiet adjustments—often hidden under the guise of “simplification”—can ultimately make the difference between a refund and an additional payment. Below, we’ll go over a few topics you should keep an eye on this year.

Do you own a second home or an investment property?

If so, this is the most important news of the year. The tax authorities are eliminating the two main deductions on loans for a non-primary residence—and they’re doing so without any transitional measures, not even for those who already have an active loan agreement. Loans that were still fully deductible in the previous tax year are now subject to the new rules in their entirety.

In practical terms, this means you can no longer deduct the interest you’ve paid from your real estate income. Until the previous tax year, this deduction was also applied at the marginal tax rate, typically 40 or 50 percent. For those who have built up part of their real estate portfolio with borrowed funds, this can quickly amount to a difference of several thousand euros per year.

There is one exception, but it applies only to loans taken out before 2024: principal repayments and premiums for a linked outstanding balance insurance policy still qualify for the tax credit for long-term savings, at a rate of 30 percent within the tax threshold. The federal housing bonus and the home-building savings plan have now been completely eliminated. For couples who combined multiple programs, this loss can amount to about a thousand euros per year.

Do you use service vouchers or have legal expense insurance?

This year, two tax benefits are being phased out at the same time. The Flemish tax credit for service vouchers—which last year provided a 20 percent discount on a purchase amount of up to 1,790 euros—has been completely abolished. The full benefit, up to 358 euros per year, will be phased out starting with the 2026 tax year.

In addition, the federal legislature is also eliminating the tax benefit for legal expense insurance. Premiums paid on or after July 1, 2025, will no longer qualify for a tax reduction. Previously, you could recover 40 percent of the premium, capped at 320 euros—amounting to a benefit of up to 128 euros per year.

Taken together, this could quickly cost a family that regularly hires domestic help several hundred euros per year—for exactly the same services and policies as before.

Do you have children who are in school or have just graduated?

For this group, the 2026 tax return does bring some good news. In recent years, more and more parents have lost the right to claim their child as a dependent for tax purposes, simply because the child had earned too much during summer break or exam periods. The threshold for net income had long since ceased to reflect the reality of student life.

The legislature has now corrected this imbalance. The threshold is being raised to 12,000 euros, and from now on, the same ceiling applies to married couples, legally cohabiting partners, and single individuals. In addition, the portion of a student’s earnings that is excluded from consideration in any case is being doubled to 6,840 euros.

The difference is most evident for recent graduates. Anyone who earned their degree in September and started working immediately almost always fell under the old limits and was subject to the tax liability regime. With the new thresholds, that is a thing of the past in most cases.

How much could this cost you or save you?

At first glance, the tax return for the 2026 tax year may not seem particularly remarkable, but for those in one of the three situations described above, the difference compared to last year can quickly add up. Making a concrete calculation before you file your return is therefore anything but a luxury. Do you have questions about your personal situation? Our team would be happy to review your file with you.