In 2026 you can deduct mortgage interest at a maximum rate of 37.56%, after adding a notional rental value (eigenwoningforfait) of 0.35% of your WOZ value to income. For €350,000 at 4% and a WOZ value of €420,000 the net deduction of €12,530 saves about €4,700 a year.
What is hypotheekrenteaftrek?
The mortgage interest deduction lets owner-occupiers deduct the interest on the loan for their main home from taxable income in box 1. To qualify, the loan must be an annuity or linear mortgage that you repay in full within 30 years, and it must be used to buy, build or improve your main residence. For loans from 2013 onward, interest-only loans no longer qualify. The deduction is a major reason why net housing costs in the Netherlands are lower than the gross figure suggests.
The eigenwoningforfait: the part people forget
The government treats owning your home as income. Each year you add the eigenwoningforfait to your income, in 2026 equal to 0.35% of the WOZ value for homes up to about €1.3 million. The benefit you receive is the interest minus the forfait, taxed at your marginal rate, with a cap on the rate at which you can deduct. As your balance falls, interest falls too, and eventually the forfait is higher than the interest. If that happens you owe extra tax. A paid-off home therefore adds roughly €1,470 to your income for a WOZ of €420,000.
Why 37.56% is the cap
Since the reform, the maximum rate at which you can deduct is aligned with the second tax bracket: 37.56% for 2026. If your marginal rate is 49.5%, you still get only 37.56% on the deduction. Below €38,883 of taxable income your rate is the lower 35.75%. The calculator takes this into account when you enter your income. Compare this to your income picture in the Netherlands salary calculator.
Worked example
| Step | Amount |
|---|---|
| Interest in a year: €350,000 × 4% | €14,000 |
| Eigenwoningforfait: €420,000 × 0.35% | −€1,470 |
| Net deduction | €12,530 |
| Tax benefit at 37.56% | €4,706 |
| Effective interest after relief | about 2.65% |
Using the result
Many people treat the tax benefit as a real saving, but it is a reduction in cost, not income. Combine it with the gross payment from the mortgage calculator to see the true monthly cost. If your balance is small relative to the home’s value, check whether extra repayments make sense in the mortgage repayment calculator, and remember that you will only receive the benefit on loans that qualify.
How to use this calculator
- Enter your current mortgage balance and interest rate.
- Add the WOZ value from your municipal assessment letter.
- Enter your gross annual income to determine your tax rate.
- Read the yearly and monthly benefit, plus your effective interest rate after relief.
Key figures at a glance
| Max deduction rate 2026 | 37.56% |
|---|---|
| Eigenwoningforfait | 0.35% of WOZ (standard bracket) |
| Maximum term | 30 years |
| Loan types | Annuity or linear only |
| Applies to | Main residence |
Frequently asked questions
All interest on a qualifying main-home loan, but the tax effect is limited to 37.56% in 2026 and reduced by the 0.35% eigenwoningforfait.
When the interest is lower than the forfait, you pay extra tax on the difference. Once the loan is fully repaid, a forfait still applies in many cases, though it is reduced by the Hillen allowance until it phases out.
Not for loans taken out after 2012. The part of an older interest-only loan may keep its deduction under transitional rules.
The Belastingdienst usually pre-fills the interest in your tax return, based on the annual statement from your lender (jaaropgaaf).
The official assessed value of your property used for local taxes, sent by your municipality each year.