Netherlands Mortgage Interest Tax Deduction Calculator

The Netherlands offers one of Europe's most generous mortgage tax benefits: the hypotheekrenteaftrek. All mortgage interest on your primary residence is fully deductible from your Box 1 income, with a maximum deduction rate of 36.97% in 2024 — even if your marginal rate is the higher 49.5% rate.

There is no cap on the loan amount or the interest amount. On a €500,000 mortgage at 4%, annual interest is €20,000. Tax saving: €20,000 × 36.97% = €7,394/year (€616/month).

Effective after-tax rate: 4% × (1 − 36.97%) = 2.52%.

• Applies to your primary residence (eigen woning) only — not rental properties or holiday homes
• For loans taken out from January 1, 2013: the mortgage must be repaid annuitair (annuity) or lineair (linear) to qualify
• Loans before 2013 are 'grandfathered' under the old rules — interest-only mortgages still qualify
• The deduction rate is capped at 36.97% even for taxpayers in the 49.5% bracket (this cap applies from 2023 onward)
• The eigenwoningforfait (deemed rental value: 0.35% of WOZ value) partially offsets the benefit

Claim the deduction in your annual aangifte inkomstenbelasting at belastingdienst.nl. The tax return period runs from March 1 to May 1. Your bank provides a year-end statement showing total interest paid.

For a refund during the year, request a voorlopige teruggave — the Dutch tax authority will then pay you monthly in advance rather than as a lump sum at year end.

Is the deduction being phased out?
The maximum deduction rate has been declining annually — it was 52% in 2013 and is 36.97% in 2024. The Dutch government has been gradually aligning it with the lower Box 1 rate. There are no current plans to eliminate it entirely.

Can non-residents claim this deduction?
Yes — non-resident taxpayers who earn at least 90% of their income in the Netherlands can opt for resident treatment and claim the hypotheekrenteaftrek.

Is BeastyTax free?
Yes, completely free — no account, no hidden costs.