Eigenwoningforfait Netherlands 2026: Calculate Your Imputed Rental Income

If you own a home in the Netherlands, you've probably seen eigenwoningforfait on your tax return and wondered what it means. In simple terms: the Dutch tax authority (Belastingdienst) assumes you're earning "virtual rent" by living in your own home instead of renting it out. That virtual income gets added to your Box 1 taxable income — and you pay income tax on it.

For 2026, the eigenwoningforfait ranges from €0 for homes under €12,500 to over €30,000 for multi-million-euro properties. Most Dutch homeowners with a WOZ value around €400,000 will add roughly €1,400 to their taxable income.

The good news? You can offset it with mortgage interest deductions, and if you have little or no mortgage debt, there's a special relief rule (Wet Hillen) that reduces the impact. Let's break down exactly how it works.

What is the eigenwoningforfait?

Eigenwoningforfait literally translates to "owner-occupied home imputed value." It's a percentage of your home's WOZ value (the municipal property valuation used for local taxes) that gets added to your income in Box 1 (income from work and home).

The Belastingdienst's logic: if you didn't live in your own home, you could rent it out and earn income. Even though you're not actually renting it, you're benefiting from living there rent-free — so the government taxes that benefit.

Key points:

• Only applies to your primary residence (hoofdverblijf)
• Based on your WOZ value as of January 1st of the tax year
• Automatically calculated by the Belastingdienst (usually pre-filled in your aangifte)
• Increases your Box 1 income, which means you pay income tax on it at your marginal rate (up to 49.5% in 2026)

Eigenwoningforfait 2026: the rates

The percentage you pay depends on your home's WOZ value. Here are the official 2026 rates:

Example calculations:

• WOZ €280,000 → 0.35% → €280,000 × 0.0035 = €980 eigenwoningforfait
• WOZ €400,000 → 0.35% → €400,000 × 0.0035 = €1,400 eigenwoningforfait
• WOZ €1,500,000 → €4,725 + (€150,000 × 0.0235) = €4,725 + €3,525 = €8,250 eigenwoningforfait

The threshold increase from €1,330,000 (2025) to €1,350,000 (2026) reflects the continued rise in Dutch property values.

How eigenwoningforfait offsets mortgage interest deduction

In most cases, your eigenwoningforfait is smaller than your mortgage interest deduction (hypotheekrenteaftrek). Here's how they interact:

1. Eigenwoningforfait increases your Box 1 income
2. Mortgage interest decreases your Box 1 income
3. The net effect is usually a tax benefit for homeowners with a mortgage

Example (2026):

• WOZ value: €400,000
• Eigenwoningforfait: €1,400 (added to income)
• Mortgage interest paid: €8,000
• Mortgage interest deduction: €8,000 × 37.56% (2026 rate) = €3,005
• Net benefit: €3,005 - €519 ≈ €2,486 in tax savings

The mortgage interest deduction percentage is 37.56% for 2026, down from 38.35% in 2025. This percentage decreases annually and will eventually phase out completely by 2048.

Wet Hillen: relief for low or no mortgage debt

If you have no mortgage or very little mortgage debt, your eigenwoningforfait will likely be higher than your deductible costs (interest + expenses). In that case, you'd be taxed on virtual income with no real deduction to offset it.

To prevent this from being unfair, the Wet Hillen (named after former State Secretary Frans Hillen) gives you a partial reduction.

How it works (2026):

• Calculate your eigenwoningforfait
• Subtract your deductible costs (mortgage interest, etc.)
• Take 71.867% of the difference as a deduction
• The remaining 28.133% gets added to your income

Example (2026):

• Eigenwoningforfait: €1,200
• Deductible costs (interest, etc.): €1,000
• Net eigenwoningforfait: €200
• Wet Hillen deduction: €200 × 71.867% = €144
• Amount added to income: €200 - €144 = €56

The 71.867% percentage is lower than 2025 (76.667%), meaning the relief is gradually phasing out. By 2030, it will be completely gone.

What about second homes or vacant properties?

Second homes:

• If you own multiple properties, only your primary residence (hoofdverblijf) is subject to eigenwoningforfait
• Second homes fall under Box 3 (wealth tax), not Box 1

Vacant or under-construction properties:

• If your home is vacant (awaiting sale, under construction, or temporarily unoccupied), you may not owe eigenwoningforfait for that period
• Report the vacancy period in your tax return — the digital aangifte system will set eigenwoningforfait to zero for those months

Partial ownership:

• If you own only part of your home (e.g., 50% with a partner), you only pay eigenwoningforfait on your share

When and how to report eigenwoningforfait

Eigenwoningforfait is part of your annual aangifte inkomstenbelasting (income tax return):

• Tax year 2026 → file by May 1, 2027 (automatic extension possible)
• WOZ value used: January 1, 2025 valuation (received early 2025)
• Where to find it: Box 1, section "Eigen woning" (own home)
• Usually pre-filled: The Belastingdienst pulls your WOZ value automatically; double-check it's correct

If you buy or sell a home mid-year, you'll owe eigenwoningforfait only for the months you owned and lived in it.

Common mistakes to avoid

Using the wrong WOZ value:

• Always use the WOZ value for January 1 of the tax year, not the most recent one you received

Forgetting to claim Wet Hillen relief:

• If you have little or no mortgage, double-check that the Belastingdienst applied the Wet Hillen deduction

Not objecting to an inflated WOZ:

• A high WOZ value increases both eigenwoningforfait and local property taxes. If you think it's wrong, file a WOZ objection (bezwaar) with your municipality within 6 weeks of receiving the valuation

Mixing up Box 1 and Box 3:

• Your primary home (eigenwoningforfait + mortgage deduction) is Box 1. Second homes, savings, and investments are Box 3. Don't confuse the two.

Eigenwoningforfait 2025 vs. 2026: what changed?

Both the Wet Hillen relief and mortgage interest deduction are phasing out over time, meaning the net tax benefit of homeownership is gradually decreasing.

FAQ

Do I have to pay eigenwoningforfait if I just bought my home?

Yes, but only for the months you owned and lived in it. If you bought your home on July 1, 2026, you'll pay 6/12 of the annual eigenwoningforfait.

Can I reduce my eigenwoningforfait by lowering my WOZ value?

Indirectly, yes. If you successfully object to your WOZ valuation and get it lowered, your eigenwoningforfait will automatically decrease. You have 6 weeks from receiving your WOZ beschikking to file a bezwaar.

What if my mortgage interest deduction is higher than my eigenwoningforfait?

That's the most common scenario — you'll have a net tax benefit from your home ownership. The eigenwoningforfait gets added to your income, but the larger mortgage interest deduction reduces it by more, leaving you with a lower tax bill.

Does eigenwoningforfait apply if I rent out a room in my home?

Yes, eigenwoningforfait still applies to your primary residence. However, rental income from a room (kamerverhuur) may be taxable separately under Box 1 or Box 3 depending on the arrangement. This can get complex — consult a tax advisor or use Bowie Tax to walk through the scenario.

Is the eigenwoningforfait the same as the eigenwoningforfait in Box 3?

No. The eigenwoningforfait we're discussing here is Box 1 (income from work and home). Box 3 is for wealth tax on savings and investments. Your primary home is never in Box 3 — only second homes and investment properties are.