1Tax credits in a nutshell
2Credit or deduction: the difference
| Tax credit (heffingskorting) | Deduction (aftrekpost) | |
|---|---|---|
| What it lowers | Your tax, directly | Your taxable income |
| Worth | The full amount, euro for euro | The amount times your tax rate |
| Example | €1,000 credit = €1,000 less tax | €1,000 deduction at 37.56% = €376 less tax |
| Examples | General and labour tax credits | Mortgage interest, gifts, alimony |
3The general tax credit (algemene heffingskorting)
- 1Up to €29,736the full €3,115
- 2Above €29,736minus 6.398% of the excess
- 3Around €78,400it reaches zero
4The labour tax credit (arbeidskorting)
Anyone with income from work gets it: salary, profit as a self-employed person, or freelance income. It is not available on a pension or benefits alone. It builds up with income, peaks, and then phases out.
- €0 to €11,965
- 8.324% of income (builds up)
- €11,965 to €25,845
- €996 + 31.009% of the excess (builds up fast)
- €25,845 to €45,592
- €5,300 + 1.95% of the excess (slowly to the maximum)
- €45,592 to €132,920
- €5,685 − 6.51% of the excess (phases out)
- Above €132,920
- €0
5What you really pay at each income
| Tax before credits | Credits | Tax after credits | Effective rate | |
|---|---|---|---|---|
| €20,000 | €7,150 | €6,603 | €547 | 2.7% |
| €35,000 | €12,513 | €8,257 | €4,256 | 12.2% |
| €50,000 | €18,076 | €7,217 | €10,860 | 21.7% |
| €70,000 | €25,588 | €4,635 | €20,953 | 29.9% |
| €100,000 | €39,432 | €2,143 | €37,289 | 37.3% |
6At AOW age
| Below AOW age | At AOW age | |
|---|---|---|
| First bracket rate | 35.75% | 17.85% (no AOW premium) |
| General tax credit | Up to €3,115 | Up to €1,556 |
| Phase-out rate | 6.398% | 3.195% |
| Extra credits | None | Elderly tax credit (ouderenkorting), and a credit for single older people |
7Partners without income
If your fiscal partner has little or no income, they may get part of their general tax credit paid out, but only for partners born before 1963. For everyone younger, this payout has been fully phased out.
8Making sure you get them
9Common questions
Why did I have to pay tax back with two jobs?
Both employers probably applied the credits, so you got them twice through payroll. The return corrects that. Ask one employer to stop applying them.
Do I get credits as a non-resident?
Usually only the parts linked to Dutch national insurance, unless you qualify as a qualifying foreign taxpayer, for example because almost all your income is taxed in the Netherlands.
What changes in 2027?
The proposed maximums are €3,154 for the general and €5,929 for the labour tax credit. See tax changes in 2027.
Where do I see my credits?
In your tax return, and in the result panel of our full tax calculator.
Sources
This article is based on these official pages. If anything here differs from them, the official page is right.
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