Dutch mortgage interest deduction in 2026: how it works
Mortgage interest deduction in the Netherlands lets you deduct mortgage interest from your taxable income, up to 37.56% in 2026. See who qualifies and how to claim it.
The mortgage interest deduction (hypotheekrenteaftrek) lets you deduct the interest you pay on your mortgage from your taxable income, lowering the tax you owe. In 2026 the maximum deduction rate is 37.56%, so for many homeowners it shaves a meaningful amount off the real cost of their loan each year. Below we explain exactly how it works, who qualifies, and how to claim it.
What is the mortgage interest deduction?
The mortgage interest deduction is a tax benefit: the interest portion of your mortgage payments can be subtracted from your taxable income in your annual income tax return (aangifte inkomstenbelasting). Because you pay tax on a lower amount, you effectively get part of the interest back. The goal is to make owning a home more affordable.
A few conditions apply. To qualify, the home must be your main residence (eigen woning), and for loans taken out from 2013 onwards the mortgage must be repaid in full within 30 years on an annuity or linear basis. Interest-only mortgages taken out after that date do not qualify for the deduction.
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How the deduction works in practice
The process is straightforward:
- You pay monthly mortgage interest to your lender.
- Each year your lender sends an annual statement (jaaropgave) showing how much interest you paid.
- You enter that interest in your tax return and deduct it from your taxable income.
- The tax office (Belastingdienst) applies your personal deduction rate and either lowers your tax bill or pays you a refund.
The amount you get back depends on the deduction rate that applies to you, not the full tax rate on your top income.
How much can you deduct in 2026?
In 2026 the maximum mortgage interest deduction rate is 37.56% (it was 37.48% in 2025). This is the rate that applies to interest on income above €78,426. Below that income threshold, interest is effectively deducted at the standard first-bracket rate of around 35.70%.
What affects the size of your deduction
- The interest you pay – the more interest, the larger the deductible amount. Early in an annuity mortgage you pay mostly interest, so the deduction is largest in the first years.
- Your income – the deduction rate is capped at 37.56% even if your top income is taxed higher.
- Your mortgage balance – this is offset by the eigenwoningforfait, a small notional income added to your taxable base for owning a home.
Worked example
To calculate your deduction, always use the interest figures on your annual statement. The table below shows two illustrative situations (figures are indicative, not a quote):
| Factor | Example 1 | Example 2 |
|---|---|---|
| Income | € 45,000 | € 90,000 |
| Mortgage | € 200,000 | € 530,000 |
| Property value | € 250,000 | € 500,000 |
| Gross monthly payment | € 950 | € 1,760 |
| Annual tax saving (approx.) | € 1,330 | € 2,080 |
| Net monthly payment (approx.) | € 840 | € 1,140 |
Your own numbers will depend on your exact interest rate, mortgage type and income, so treat this as a guide rather than a calculation for your situation.
Will the deduction be abolished?
The future of the mortgage interest deduction has been debated in the Netherlands for years. In the past the maximum rate was lowered step by step, but that reduction has largely run its course and the rate has settled around 37.5%. There is no confirmed plan to abolish it outright in 2026. If policy does change, it would mainly affect homeowners with larger mortgages, since they deduct the most interest.
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The maximum deduction rate in 2026 is 37.56%, up slightly from 37.48% in 2025. The reduced top rate applies to interest on income above €78,426.
The home must be your main residence and, for loans taken out from 2013, the mortgage must be repaid in full within 30 years on an annuity or linear basis. Interest-only loans taken out after 2013 do not qualify.
You declare the interest from your lender's annual statement in your income tax return. The Belastingdienst then applies your deduction rate and either lowers your tax bill or pays a refund.
No. The earlier step-by-step reduction has essentially stabilised around 37.5% and there is no confirmed plan to abolish it in 2026.
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