Netherlands tax allowances & benefits 2026
Complete guide to toeslagen and tax credits
Why this matters
Every year, thousands of expats in the Netherlands miss out on €2,000–4,000 in government benefits they're legally entitled to receive. The Dutch system of toeslagen (allowances) and heffingskortingen (tax credits) is designed to make living costs more affordable, but the bureaucratic complexity means many internationals either don't know these benefits exist or don't understand how to claim them.
Healthcare
€131/month max
Rent
170k new eligible
Box 3
7.78% deemed return
🔔 November 24, 2025 update: Major huurtoeslag reform announced
On November 23-24, 2025, the Dutch government announced significant changes to rent allowance (huurtoeslag) for 2026:
Key changes (effective January 1, 2026):
- Rent ceiling removed: No maximum rent limit (people with €1,200+ rent can now qualify)
- Age threshold changed: Ages 21-22 now qualify for full allowance (previously only under 23 got reduced)
- Service costs excluded: Only "kale huur" (base rent) counts, not utilities/maintenance
- Asset limits updated: €38,479 singles, €76,958 couples (more people now qualify)
- Calculation tool live: toeslagen.nl/proefberekening available NOW for 2026 estimates
Who should check immediately:
- • Paying >€900/month rent (may now qualify)
- • Ages 21-22 renting (may get MORE allowance)
- • Haven't applied before thinking you're "too rich" (asset limits increased)
Next steps:
- 1. Use calculator: toeslagen.nl/proefberekening (free, 5 minutes)
- 2. See your 2026 amount: December 2025 letters to current recipients
- 3. Apply if eligible: Via Mijn Toeslagen on toeslagen.nl
Read full huurtoeslag section below for complete details.
Understanding the Dutch benefits system
The Netherlands operates a comprehensive social security system that provides financial support to residents through two main mechanisms: toeslagen (monthly allowances paid by the tax authority) and heffingskortingen (tax credits that reduce your income tax). Unlike your home country's tax system, Dutch allowances are proactive—you must apply for them, estimate your annual income, and then reconcile at year-end based on your actual earnings.
The Dutch Tax and Customs Administration (Belastingdienst) administers these benefits through a separate division called Dienst Toeslagen. All applications are processed through the Mijn Toeslagen (My Allowances) portal, which requires a DigiD (digital identification) and BSN (citizen service number).
Key differences from other countries
- Monthly advance payments: Unlike annual tax credits in many countries, Dutch allowances are paid monthly based on estimated income.
- Year-end reconciliation: After filing your income tax return, the tax authority calculates your final entitlement and either refunds underpayments or requests repayment of overpayments.
- Income-dependent: Most benefits phase out gradually as income increases, rather than having hard cutoffs.
- Household-based: Your eligibility often depends on combined household income, including fiscal partners and sometimes co-residents.
Zorgtoeslag (healthcare allowance)
The healthcare allowance helps cover your mandatory Dutch health insurance premium. With insurance premiums averaging €1,700–1,900 annually in 2026, this benefit remains one of the most valuable for low-to-middle-income expats.
Singles (2026)
- Maximum: €131/month (€1,572 annually)
- Income limit: €41,163 gross annual
- Asset limit: €145,586
- Decreases gradually above ~€29,500
Couples (2026)
- Maximum: €250/month (€3,000 annually)
- Income limit: €51,630 combined
- Asset limit: €184,095
- Decreases gradually above ~€29,500
2026 eligibility requirements
- Age 18 years or older
- Mandatory Dutch health insurance (basisverzekering)
- Dutch/EU/EEA nationality or valid residence/work permit
- Income and assets below thresholds (assessed January 1, 2026)
Huurtoeslag (rent allowance)
Major reforms effective January 1, 2026
Rent allowance is undergoing major reforms in 2026, making it available to approximately 170,000 additional Dutch households who were previously ineligible.
- No maximum rent cap: The current strict limit of €900.07 has been removed. Tenants paying higher rent can now receive allowance.
- New age threshold: Full rent allowance calculation now applies to tenants aged 21 and older (previously 23+).
- Service costs excluded: Service costs (utilities in common areas, building maintenance) are now excluded from calculations. Only basic rent counts.
2026 eligibility requirements
- Age 18+ (21+ for full allowance calculations)
- Independent housing (own front door, kitchen, bathroom)
- Valid rental agreement
- Registered at rental address with municipality
- Income: Variable based on household (use proefberekening calculator to determine YOUR limit)
- Assets (UPDATED November 24, 2025): €38,479 singles, €76,958 couples, €38,479 per medebewoner
Important: Income limits in 2026 are VARIABLE and depend on multiple factors (household composition, ages, actual rent). There is NO single "maximum income" threshold. Use the proefberekening tool to determine YOUR specific income limit.
Rent calculation ceilings for 2026 (NEW)
Ages 21+:
€932.93/month maximum calculation
Ages 18-20:
€498.20/month maximum calculation
What this means:
- • If you're 21+ paying €1,200 rent, toeslag calculates on €932.93 only
- • If you're 18-20 paying €600 rent, calculation is on actual €600 (lower than ceiling)
- • Ceilings are used only if your actual rent exceeds them
New: Free test calculation tool available (November 24, 2025)
As of November 24, 2025, Dienst Toeslagen has released a free "proefberekening" (test calculation) tool:
- • Link: toeslagen.nl/proefberekening
- • What it does: Shows you estimated huurtoeslag for 2026 based on your personal situation
- • No registration needed: Get immediate estimate
- • Accuracy: Based on official 2026 calculations
Action:
If you haven't received 2026 toeslag amount yet, use this calculator immediately to:
- 1. See if you qualify (may be NEW eligible in 2026)
- 2. Calculate estimated monthly amount
- 3. Determine if you need to apply before January 1
Timeline: Current recipients get notification letters in December 2025 with their 2026 amounts. Use calculator if you don't receive letter.
Important for existing huurtoeslag recipients
If you already receive huurtoeslag:
- • December 2025 letter: You'll receive official letter showing your 2026 voorschotbedrag (advance amount)
- • Service costs: If you received 2026 toeslag for servicekosten in 2025, this will be REMOVED from 2026 calculation (check your letter carefully)
- • Age 21-22 change: If you're turning 21 or currently 21-22, you may see INCREASE in 2026 amount
Do NOT need to do anything
Automatic adjustment applied unless your situation changes.
Report changes immediately if:
- • Income changes (job change, bonus, loss of income)
- • Rent increases
- • Move to different accommodation
- • Move in/out with partner or co-resident
Changes reported immediately = no overpayment issues later.
Kindgebonden budget (child budget)
The kindgebonden budget provides additional financial support beyond the regular child benefit (kinderbijslag) to help families with children under 18 cover childcare, education, and living costs.
Single parents (2026)
- First child: €5,980 max
- Second+ child: €2,573 each
- Single parent supplement: €3,407
- Age 12-15 bonus: €722/child
- Age 16-17 bonus: €961/child
- Income threshold: €29,697
Couples (2026)
- First child: €2,573 max
- Second+ child: €2,573 each
- Age 12-15 bonus: €722/child
- Age 16-17 bonus: €961/child
- Income threshold: €39,074
- Asset limit: €184,095
Automatic assessment
If you already receive kinderopvangtoeslag (childcare allowance), huurtoeslag, or zorgtoeslag, you don't need to apply separately. The tax authority will automatically assess your eligibility.
Tax Credits (Heffingskortingen) 2026
Tax credits directly reduce the amount of income tax and social insurance premiums you owe. Unlike deductions (which reduce taxable income), credits reduce your final tax bill euro-for-euro. Most are applied automatically through payroll, but some require claiming in your annual tax return.
Algemene heffingskorting (general tax credit)
- Maximum: €3,115/year (€47 increase from 2025)
- Applies to income up to €28,883
- Phases out at 6.306% for income €28,883 to €78,968
- Zero for income above €78,968
- Automatically calculated by employer through payroll
Arbeidskorting (employment tax credit)
- Maximum: €5,712/year (€113 increase from 2025)
- Applies to first €38,883 of employment income
- Phases out for income above €45,593
- Continues phasing out to zero around €131,000
- Automatically applied through payroll
Inkomensafhankelijke combinatiekorting (combination credit)
Being phased out: Only for children born before January 1, 2025. Phase-out ends January 1, 2037.
- Maximum: €3,032/year (€46 increase from 2025)
- Child under 12 (born before Jan 1, 2025) registered at your address 6+ months
- Your labour income must exceed €6,239 annually
- If fiscal partner: only lower-earning partner qualifies
- Must be claimed in annual tax return (not automatic)
Additional credits
- Ouderenkorting (Senior): €2,067 max (pension age 66y 10m)
- Alleenstaandeouderenkorting (Single Elderly): €540 fixed
- Jonggehandicaptenkorting (Young Disabled): €923
Box 3 Wealth Tax Changes 2026
Major changes effective January 1, 2026
Tax-Free Allowance (Reduced)
- Singles: €51,396 (down €6,288 from €57,684)
- Couples: €102,792 (down €12,576)
Deemed Return Rates (Increased)
- Bank savings: 1.44%
- Investments: 7.78% (up from 5.88%)
- Tax rate: 36%
2026 example calculation
Single with €100,000 in investment savings:
- Tax-free amount: €51,396
- Taxable amount: €48,604 (€100,000 – €51,396)
- Deemed return: €48,604 × 7.78% = €3,785
- Tax owed: €3,785 × 36% = €1,363 annually
Compared to 2025 (5.88%): €1,083, this is €280 more tax per year.
Legal optimization strategies
- Maximize exemption: Each partner gets €51,396 exemption (split assets between partners)
- Primary residence: Exempt from Box 3 (taxed under Box 1 only)
- Counterevidence procedure: Prove actual returns were lower than deemed returns
- Debt optimization: Debts reduce Box 3 tax base (2.62% deduction rate)
- Green investments: Exemption reduced to €200 per person (down from €26,312)
For a complete guide on Box 3 wealth tax including filing process, asset reporting, and advanced tax-reduction strategies, see our Box 3 Wealth Tax Guide.
How to Apply for Toeslagen
Prerequisites
- BSN: Your Dutch citizen service number
- DigiD: Digital identification for government websites
- Dutch bank account: Required for receiving payments
- Municipal Registration: You must be registered at your address
Step 1: Check Eligibility
Use the official calculator at toeslagen.nl to confirm you meet income and asset requirements.
Step 2: Log In
Go to toeslagen.nl → "Inloggen op Mijn toeslagen" → Log in with DigiD.
Step 3: Apply
Select your allowance (Zorgtoeslag, Huurtoeslag, etc.) → "Aanvragen" → Complete form with income estimate → Submit.
Step 4: Wait for Decision
Receive provisional calculation within 5 weeks. Payments begin on 20–22nd of each month.
Common Expat Mistakes to Avoid
Not applying at all
If you're registered in the Netherlands, have valid residence permit, and meet income requirements, you're entitled to these benefits regardless of how long you plan to stay.
Underestimating/overestimating income
Include all sources: salary, bonuses, holiday pay, benefits. Better to estimate slightly high and receive a refund than owe money. Update immediately when circumstances change.
Forgetting to update changes
You're legally required to report changes affecting your benefits within 4 weeks (new job, partner moving in, rent increase, children born). Failure can result in fraud allegations.
Missing tax credits in annual return
The income-related combination tax credit and various deductions must be actively claimed. They're not automatic. Use tax calculators to understand your situation.
Using foreign bank account
Belastingdienst requires a Dutch or EU bank account (IBAN) for toeslagen payments. Open a Dutch bank account immediately after receiving your BSN.
Critical 2026 Deadlines
| Date | Deadline |
|---|---|
| March 1 | Income tax season opens (file 2025 return) |
| April 1 | File to get assessment before July 1 |
| May 1 | Final deadline to file income tax return |
| September 1 | Last day to apply for 2025 toeslagen retroactively |
| 20-22nd monthly | Toeslagen payments deposited |
Your Action Checklist for December 2025/January 2026
Frequently asked questions
What is the maximum zorgtoeslag (healthcare allowance) in 2026?
Singles: €131 per month (€1,572 annually) with income below €41,163. Couples: €250 per month (€3,000 annually) with combined income below €51,630. Asset limits: €145,586 singles, €184,095 couples.
What are the major huurtoeslag (rent allowance) changes in 2026?
Three major changes effective January 1, 2026: No maximum rent cap (€900.07 limit removed), age threshold lowered to 21+ (was 23+), and service costs excluded from calculation. Approximately 170,000 additional households become eligible.
How much is Box 3 wealth tax in 2026?
Tax-free allowance: €51,396 singles (reduced from €57,684), €102,792 couples. Deemed return: 7.78% on investments (increased from 5.88%). Tax rate: 36%. Example: €100,000 investments = €1,363 annual tax.
What is the arbeidskorting (employment tax credit) in 2026?
Maximum €5,712 (€113 increase from 2025). Applies to employment income, phases out for income above €45,593. Applied automatically through payroll.
How do I apply for toeslagen (allowances) in Netherlands?
Requirements: BSN (citizen service number), DigiD (digital ID), Dutch bank account, municipal registration. Apply through Mijn Toeslagen portal (toeslagen.nl). Decision within 5 weeks, payments on 20-22nd of each month.
What is the deadline to apply for toeslagen retroactively?
September 1 of the following year. Example: Apply for 2025 benefits by September 1, 2026. Tax return deadline: May 1 (or September 1 with extension).