In short
If you live in a home you own with a mortgage, you pay interest every month. In most cases you can deduct that interest from your taxable income in box 1. That lowers your income tax: in effect the tax authorities pay part of your interest.
Against that stands the notional rental value (eigenwoningforfait): a small percentage of the WOZ value of your home that is added to your income. So what you really deduct is the difference: interest paid minus the notional rental value.
This year’s figures
- 37.56%
- maximum relief rate 2026
- 0.35%
- notional rental value, WOZ value up to €1,350,000
- €1,350,000
- upper limit of the notional rental value rate
Work it out yourself
Move the sliders. You will see straight away what you pay gross and net each month, and how the relief is calculated.
Net monthly payment, first year
€1,280
Gross €1,671 minus €391 tax relief per month
- What you pay yourself
- €1,280
- Tax relief
- €391
How it is calculated
- Interest paid in the first year€13,888
- Notional rental value (0.35% of the WOZ value)€1,400
- Deductible amount€12,488
- Relief rate37.56%
- Tax relief per year€4,690
It cannot be higher than 37.56%, even in the top bracket.
How much do you get back?
You do not deduct the interest at your highest tax rate, but at a capped rate. In 2026 that cap is 37.56%. Even if you are in the top bracket (49.50%), you get back no more than 37.56% of your deductible amount. If your income falls entirely in the first bracket, the relief is slightly lower.
Which conditions apply?
Interest relief only applies to your own home: the home you live in yourself, your main residence. These rules also apply:
- You borrowed the money to buy, renovate or maintain the home.
- If you took out the mortgage after 1 January 2013, you must repay it in no more than 30 years, at least on an annuity basis. Linear is also allowed. An interest-only mortgage does not qualify.
- You can deduct the interest for a maximum of 30 years.
- If you made a profit on your previous home, you must put it into the new one. If you do not, the corresponding part of the new loan does not qualify. This is the bijleenregeling (additional borrowing rule).
Little or no mortgage left?
Is your notional rental value higher than the interest you pay, for example because you have repaid almost everything? Then you would end up paying tax on your home. The Hillen Act largely prevents that: you get an extra deduction, so you pay little or no tax on the difference. This arrangement is being phased out over thirty years from 2019.
Get the relief every month
You do not have to wait for your tax return. With a provisional assessment you receive the relief in your account every month. You apply for it through Mijn Belastingdienst; after buying a home that is usually the first thing to do.
Frequently asked questions
Do I get interest relief on an interest-only mortgage?
Only if you had that mortgage before 2013 and it falls under the transitional rules. New loans since 1 January 2013 must be repaid on at least an annuity or linear basis.
Why don’t I get my highest tax rate back?
The relief rate is capped by law at the rate of the second bracket. In 2026 that is 37.56%, even if you are in the top bracket.
What is the notional rental value (eigenwoningforfait)?
An amount added to your income because you live in your own home. In 2026 it is 0.35% of the WOZ value for homes up to €1,350,000.
Can my partner claim the relief?
Yes. Tax partners may split the deduction between them as they like. It only makes a difference if one of you is in the first bracket; with the same rate it does not matter.
This explanation is general and not personal advice. The calculators give an indication based on the main rules; no rights can be derived from the outcome.