A tax credit reduces the amount of income tax and national insurance contributions you owe. Tax credits consist of a 'contribution component' and a 'tax component'.
The contribution component is the reduction on national insurance contributions. The tax component is the reduction on income tax. Depending on your personal situation, you can receive the full amount of the tax credit, part of the amount or no tax credit.
For more information, go to 'Aftrekposten en kortingen' (only available in Dutch).
On this page:
- Reduction on national insurance contributions
- Contribution component of the tax credit
- Reduction on income tax
- Tax component of the tax credit
- Not compulsorily covered by the Dutch national insurance schemes
Reduction on national insurance contributions
Do you have compulsory national insurance and do you meet the conditions for the tax credit? If so, you are entitled to the contribution component of the tax credit.
Please note!
If you are voluntarily covered by the national insurance schemes via the Sociale Verzekeringsbank (SVB), you will not receive the reduction on the national insurance contributions via the Tax Administration. In that case, the contribution component is included in the SVB's contribution calculation.
You have compulsory national insurance in the Netherlands for part of the year
Are you compulsorily covered by the Dutch national insurance schemes for part of the year? If so, you are only entitled to the contribution component of the tax credit for that part of the year. Complete your income tax return to see what you are entitled to.
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Contribution component of the tax credit
| Contribution | Contribution component 2024 |
|---|---|
| General Old Age Pensions Act (AOW) | 17,90/36,97 |
| National Survivor Benefits Act (Anw) | 0,1/36,97 |
| Long-term Care Act (Wlz) | 9,65/36,97 |
| Contribution | Contribution component 2023 |
|---|---|
| General Old Age Pensions Act (AOW) | 17,90/36,93 |
| National Survivor Benefits Act (Anw) | 0,1/36,93 |
| Long-term Care Act (Wlz) | 9,65/36,93 |
| Contribution | Contribution component 2022 |
|---|---|
| General Old Age Pensions Act (AOW) | 17,90/37,07 |
| National Survivor Benefits Act (Anw) | 0,1/37,07 |
| Long-term Care Act (Wlz) | 9,65/37,07 |
Example
In 2024 the general tax credit is a maximum of €3,362. The part of the general tax credit that relates to the:
- General Old Age Pensions Act (AOW) amounts to: 17.90/36.97 part of €3,362 = €1,627
- National Survivor Benefits Act (Anw) amounts to: 0.1/36.97 part of €3,362 = €9
- Long-term Care Act (Wlz) amounts to: 9.65/36.97 part of €3,362 = €877
Please note!
Have you reached the AOW pension age? Then different calculation rules apply for the calculation of the different parts of the tax credit. This is because you no longer have to pay the AOW contribution. In the year that you reach the AOW pension age, the tax rate in the first two tax brackets will change as a result. The month in which you reach the AOW pension age determines the tax rate level.
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Reduction on income tax
If you are a resident taxpayer in the Netherlands, you may receive not only the contribution component, but also the amount of the reduction on income tax. Check which situation applies to you:
- You live in the Netherlands for the whole year.
You are entitled to the tax component of the tax credit. Complete your income tax return to see what you are entitled to. - You live abroad for the whole year.
You are usually not entitled to the tax component of the tax credit. However, you may qualify for some tax components of the tax credit. Complete your income tax return to see what you are entitled to. - You live in the Netherlands for part of the year.
You are usually only entitled to the tax component of the tax credit for the time period you live in the Netherlands. You are not entitled to certain components of the tax credit. Complete your income tax return to see what you are entitled to. - You live abroad for the whole or part of the year and you are a qualifying non-resident taxpayer.
You are entitled to the tax component of the tax credit. This also applies to the period you live abroad. Complete your income tax return to see what you are entitled to.
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Tax component of the tax credit
| Year | Tax component of the tax credit |
|---|---|
| 2024 | 9,32/36,97 |
| 2023 | 9,28/36,93 |
| 2022 | 9,42/37,07 |
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Not compulsorily covered by the Dutch national insurance schemes
If you do not have compulsory national insurance in the Netherlands, you do not have to pay national insurance contributions here. For example, if you are employed outside the Netherlands. In that case, you are usually insured for social security in the country where you work. For your tax credits, this means that you are not entitled to the contribution component of the tax credits.
Do you live in the Netherlands and receive a foreign pension? And are you insured outside the Netherlands for your healthcare costs? If so, you may be granted an exemption to pay national insurance contributions in the Netherlands. The Sociale Verzekeringsbank (SVB) will assess whether you are eligible. Visit the SVB website for more information.
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