{"id":442,"date":"2017-01-24T12:39:48","date_gmt":"2017-01-24T11:39:48","guid":{"rendered":"https:\/\/vwg.nl\/uncategorized\/geen-eigen-woningbijtelling-toch-belasting-betalen\/"},"modified":"2026-03-03T10:32:53","modified_gmt":"2026-03-03T09:32:53","slug":"no-property-allowance-but-still-paying-tax","status":"publish","type":"post","link":"https:\/\/vwg.nl\/en\/geen-eigen-woningbijtelling-toch-belasting-betalen\/","title":{"rendered":"No tax deduction for owner-occupied property; still have to pay tax"},"content":{"rendered":"

\"property<\/p>\n

You pay income tax in Box 1 on the benefit derived from your own home. Your own home is the property of which you are the (co-)owner or beneficial owner and which is your main residence.
\nIf the amount of interest you deduct for your own home is less than the value of the benefit you derive from it, you do not have to include the balance in your income. However, since 2014, this does not mean that you do not have to pay tax.<\/p>\n

Tax allowance for owner-occupied property<\/h4>\n

The value of the benefit of owning your own home is assessed on a flat-rate basis (the notional value of owner-occupied property<\/em>, formerly flat-rate rental value<\/em>). This flat-rate amount is calculated on the basis of the WOZ value of your own home. For 2017, the additional tax liability amounts to 0.75% of the WOZ value. Lower additional tax percentages apply to properties with a WOZ value of no more than \u20ac75,000. For WOZ values above \u20ac1,060,000, as much as 2.35% must be added.<\/p>\n

Example<\/em>
\nThe local authority has set the WOZ value of your home for 2017 at \u20ac350,000. Your home allowance is therefore: 0.75% * \u20ac350,000 = \u20ac2,625.<\/em><\/p>\n

Mortgage interest deduction for your own home<\/h4>\n

You may deduct the interest and charges you pay on loans taken out to finance your own home. However, the loans must meet a number of conditions, which we will not discuss in this article. The interest is deducted from the \u2018own home allowance\u2019. On balance, this often results in a tax deduction.<\/p>\n

Example<\/em>
\nYou financed the purchase of your home, which has a WOZ value of \u20ac350,000, partly with a bank loan of \u20ac250,000. You pay 2.25% interest on this loan each year, which amounts to \u20ac5,625. The tax deduction for your own home is therefore:<\/em><\/p>\n\n\n\n\n\n
own home allowance<\/em><\/td>\n\u20ac 2.625<\/em><\/td>\n<\/tr>\n
deduction: interest deduction<\/em><\/td>\n\u20ac 5.625<\/em><\/span><\/td>\n<\/tr>\n
tax deduction for owner-occupied property (balance)<\/em><\/td>\n\u20ac 3.000<\/em><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Hillen deduction<\/h4>\n

Where the balance of the owner-occupied property allowance minus the deductible interest does not result in a tax deduction, there is no need to add this amount. In that case, you may claim the so-called Hillen deduction<\/em> apply.<\/p>\n

Example<\/em>
\nPartly because your savings are yielding a low return, you decide to make a repayment of \u20ac150,000 on your mortgage. As a result, the annual interest payable falls to 2.25% * \u20ac100,000 = \u20ac2,250.<\/em><\/p>\n\n\n\n\n\n\n\n
own home allowance<\/em><\/td>\n\u20ac 2.625<\/em><\/td>\n<\/tr>\n
deduction: interest deduction<\/em><\/td>\n\u20ac 2.250<\/em><\/span><\/td>\n<\/tr>\n
additional tax liability on owner-occupied property<\/em><\/td>\n\u20ac 375<\/em><\/td>\n<\/tr>\n
from: hillenaftrek<\/em><\/td>\n\u20ac 375<\/em><\/span><\/td>\n<\/tr>\n
balance of the tax allowance for the owner-occupied home<\/em><\/td>\n\u20ac 0<\/em><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Rate adjustment<\/h4>\n

For the past few years, mortgage interest on one\u2019s own home has no longer been deductible at the highest rate. The highest rate for income tax in box 1 is 52%. In 2017, this rate applies to income in box 1 exceeding \u20ac67,072. In 2017, this rate is adjusted to 2% for the deduction of mortgage interest on the owner-occupied home.<\/p>\n

Example<\/em><\/p>\n\n\n\n\n\n\n\n\n
own home allowance<\/em><\/td>\n\u20ac 2.625<\/em><\/td>\n<\/tr>\n
deduction: interest deduction<\/em><\/td>\n\u20ac 5.625<\/span><\/em><\/td>\n<\/tr>\n
tax deduction for your own home<\/em><\/td>\n\u20ac 3.000<\/em><\/td>\n<\/tr>\n
tax relief (52% * \u20ac3,000)<\/em><\/td>\n\u20ac 1.560<\/em><\/td>\n<\/tr>\n
adjustment (2% * \u20ac5,625)<\/em><\/td>\n\u20ac 112<\/span><\/em><\/td>\n<\/tr>\n
net tax benefit<\/em><\/td>\n\u20ac 1.448<\/em><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

The tariff adjustment was 0.5% in 2014, 1% in 2015 and 1.5% in 2016. In the coming years, the rate of adjustment will be increased by 0.5% annually.<\/p>\n

Rate adjustment and tax relief<\/h4>\n

This adjustment also applies in situations where, as a result of the Hillen deduction, no net owner-occupied property allowance needs to be applied.<\/p>\n

Example<\/em><\/p>\n\n\n\n\n\n\n\n\n\n\n
own home allowance<\/em><\/td>\n\u20ac 2.625<\/em><\/td>\n<\/tr>\n
deduction: interest deduction<\/em><\/td>\n\u20ac 2.250<\/span><\/em><\/td>\n<\/tr>\n
tax deduction for your own home<\/em><\/td>\n\u20ac 375<\/em><\/td>\n<\/tr>\n
from: hillenaftrek<\/em><\/td>\n\u20ac 375<\/span><\/em><\/td>\n<\/tr>\n
balance of the tax allowance for the owner-occupied home<\/em><\/td>\n\u20ac 0<\/em><\/td>\n<\/tr>\n
tax relief (52% * \u20ac0)<\/em><\/td>\n\u20ac 0<\/em><\/td>\n<\/tr>\n
adjustment (2% * \u20ac2,250)<\/em><\/td>\n\u20ac 45<\/span><\/em><\/td>\n<\/tr>\n
net tax payable<\/em><\/td>\n\u20ac 45<\/em><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

The North Holland District Court<\/a> has recently confirmed that, in this situation, income tax is indeed payable as a result of the rate adjustment.<\/p>","protected":false},"excerpt":{"rendered":"

Over het genot van uw eigen woning betaalt u in box 1 inkomstenbelasting. Uw eigen woning is de woning waarvan u (mede-)eigenaar of zakelijk gerechtigde bent en die uw hoofdverblijf is. Als u voor uw eigen woning minder rente aftrekt dan de waarde van uw genot, hoeft u het saldo toch niet bij uw inkomen […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-442","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"acf":[],"_links":{"self":[{"href":"https:\/\/vwg.nl\/en\/wp-json\/wp\/v2\/posts\/442","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vwg.nl\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vwg.nl\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vwg.nl\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/vwg.nl\/en\/wp-json\/wp\/v2\/comments?post=442"}],"version-history":[{"count":0,"href":"https:\/\/vwg.nl\/en\/wp-json\/wp\/v2\/posts\/442\/revisions"}],"wp:attachment":[{"href":"https:\/\/vwg.nl\/en\/wp-json\/wp\/v2\/media?parent=442"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vwg.nl\/en\/wp-json\/wp\/v2\/categories?post=442"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vwg.nl\/en\/wp-json\/wp\/v2\/tags?post=442"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}