Tax credits (heffingskorting) in The Netherlands and how applied in the income tax return

Tax Credits Heffingskorting. A tax credit is a discount on income tax (Inkonstenbelasting) and social insurance contributions (Zorgverzekeringswet). This means you pay less taxes and premiums. The tax credits you receive depend on your personal situation.

What tax credits exist?

1. General tax credit (Algemene heffingskorting): If you reside in the Netherlands and have to pay salary tax or income tax, you are entitled to the general tax credit. This discount depends on your income. You’ll get less of an overall tax credit if your income increase.

General tax credit table: not yet the state pension age in 2024.

2. Employee discount (Arbeidskorting):

You receive the tax credit when you work and it is calculated on the income from work. If you have an employer this tax credit is calculated in the payroll tax. If the tax return is filed, this tax credit does not have to be applied for separately, because it is calculated automatically.

The amount of the employed person’s tax credit depends on their age and the amount of their income. However, your income cannot be higher than:

• • 39,957.00 EUR in 2024
  • 37,691.00 EUR in 2023
  • 36,649.00 EUR in 2022
  • 35,652.00 EUR in 2021

Table for employed person’s tax credit: not yet the state pension age in 2024.

3. Income-dependent combination discount (Inkomensafhankelijke combinatiekorting):

To be eligible for this tax credit, your child must be registered with the town hall at their address. This discount can be requested in the income tax.

Who do we see as your son?
– own child
– A stepson
– An adopted child, only if he raises and maintains it as his own child
– An adopted child
– A child from a previous relationship of your spouse or registered partner
– If you live together or have a roommate and are tax partners, we also consider the child of that tax partner as your child

The following conditions must also be met by your child:
Your child is under 12 years old on January 1 of the reporting year.
Your child must be registered for at least 6 months in one calendar year.
They have shared custody, your child can also be registered with the town hall at the address of your ex-partner.
If you and your child have been registered at the same address for less than 6 months because you or your child passed away, you will still receive the discount.
Your earned income is more than a fixed amount.
You do not have a tax partner or you have had a tax partner for less than 6 months, or you have a tax partner for more than 6 months and you have less earned income than your tax partner.

Table income-related combination tax credit: not yet the state pension age in 2024.

4. Tax credits for AOW recipients (Heffingskortingen voor AOW-gerechtigden): 

You will receive the senior tax credit if you have reached state retirement age by December 31 of the calendar year.

Table for the elderly discount 2024.

5. Young disabled discount (Jonggehandicaptenkorting): (Jonggehandicaptenkorting):

If you receive the benefit under the Disabled Youth Employment and Labor Support Act, called the Wajong benefit, and do not receive a discount for the elderly, then you will receive the Disabled Youth Tax Credit.

This discount is received through the benefits agency (UWV), but if you work as an employee, then you will receive this discount if the tax return is filed.

Table young handicapped discount.

6. Lifetime license discount (Levensloopverlofkorting) hasta el 2022: If you have saved with the life savings plan  (levensloopregeling) and withdraw money from that savings account, for unpaid leave or purchases part of your lifetime credit, then you will receive said tax credit. In 2021, the discount is for a maximum of EUR 223 per year you have saved for the life savings plan, in the period 2006 to 2011.

7. Tax credit for green investments (Heffingskorting voor groene beleggingen): Do you or your tax partner invest money in a green fund (groenfonds)? Then you can receive a discount for your green investments (groene beleggingen). The green investment tax credit is calculated on top of your green investment exemption. The tax credit is 0.7% of your exemption (vrijstelling).
Tax Credits Heffingskorting

Income tax and 30% ruling – Tax In | Administratie & Belastingen | Administración e impuestos | Administration & Taxes
Source: Belastingdienst