What is the mortgage interest deduction?
You can deduct the interest on your home loan from your taxable income. That lowers the income tax you pay in Box 1. The deduction is called the hypotheekrenteaftrek.
It applies only to the mortgage on your own home, the place you actually live. This home sits in Box 1, the tax box for income from work and your main residence. A holiday home or a rental property sits in Box 3 instead, so the interest on it is not deductible.
Meet Priya. She moved to Amsterdam, bought a flat and pays €12,000 in mortgage interest this year. We follow her through this page to show what she gets back.
In short
37.56% in 2026 the maximum rate at which you deduct your mortgage interest. It was 37.48% in 2025.
Your own home only the deduction covers the home you live in, not a rental or holiday home.
Repay within 30 years a loan from 2013 qualifies only if you repay it fully. At least on an annuity or linear basis.
Older loans keep the old rules a loan taken before 2013 and never increased may stay interest-only and still deduct.
30 years of deduction you can deduct the interest for a maximum of 30 years per loan.
A cap above €78,426 the Belastingdienst taxes income above this at 49.50%, but the deduction still saves at most 37.56%.
Box 1 mechanism the interest lowers your Box 1 income, after the Belastingdienst adds your eigenwoningforfait.
Monthly refund the voorlopige aanslag or provisional assessment pays the benefit out each month.
Who qualifies for the deduction?
You qualify if you own the home you live in and borrowed for it. The loan must be to buy, improve or maintain that home. Its purpose decides whether the interest counts.
For any loan taken from 1 January 2013, one condition is strict. You repay the loan in full within 30 years, at least on an annuity or linear schedule. That means level or gradually falling monthly payments. An interest-only loan taken from 2013 does not qualify for the deduction.
Took out your loan before 2013 and never increased it? Then the old rules still apply. That part of the loan may stay interest-only, and you keep the deduction on it. Whatever the loan date, you deduct the interest for at most 30 years. Arrived partway through the year? The deduction covers the interest from the month you moved in.
How much can you deduct in 2026?
In 2026 you deduct your mortgage interest at a maximum rate of 37.56%. In 2025 the rate was 37.48%. Since 2023 the same maximum applies to every income, high or low.
This cap matters most if you earn more. In 2026 the Belastingdienst taxes income above €78,426 at 49.50%. Your mortgage interest still lowers your tax at 37.56% only, not at your top rate. Both figures come from belastingdienst.nl, checked on 6 August 2026.
| Figure | 2026 |
|---|---|
| Maximum deduction rate | 37.56%37.48% in 2025 |
| Rate cap applies above | €78,426 |
| Maximum deduction period | 30 years per loan |
| Repayment condition, loans from 2013 | Annuity or linear, within 30 years |
| Eligible home | Your own main residence |
How does the deduction work?
The Belastingdienst nets your interest against the small amount it adds for your home. That amount is the eigenwoningforfait, a fixed percentage of your home's WOZ value. The WOZ value is what your municipality sets each year. For most homes the forfait is 0.35% in 2026.
So the sum is simple. Your deductible amount is the interest you paid, minus the eigenwoningforfait. Whatever is left lowers your Box 1 income. The gross interest is what you pay the bank. The net interest is what your home costs you after the deduction.
We set out the villa bracket and the full forfait table on our eigenwoningforfait page. Here we keep to the netting.
Back to Priya. Here is her deduction, step by step.
| Step | Calculation | Result |
|---|---|---|
| Mortgage interest paid | — | €12,000 |
| Eigenwoningforfait | €400,000 × 0.35% | €1,400 |
| Deductible amount | €12,000 − €1,400 | €10,600 |
| Tax saved | €10,600 × 37.56% | approx. €3,981 |
| Net interest cost | €12,000 − €3,981 | approx. €8,019 |
So Priya pays €12,000 in interest and gets about €3,981 back. Her home costs her around €8,019 in interest for the year.
“Many homeowners deduct their interest but never check the forfait netted against it, or the rate cap on a higher income. We read your whole Box 1 position with you, so you claim exactly what fits your situation.”
What this means for you
Check which rules apply to your loan, then claim the deduction in your tax return. The Belastingdienst usually pre-fills the interest from your lender, so you mostly review and confirm it.
Do not want to wait a year for the money? Ask the Belastingdienst for a voorlopige aanslag, a provisional tax assessment. It pays your deduction out in monthly amounts across the year.
Want to look at your mortgage itself as well? One conversation can cover both the tax side and the mortgage side. It also links up to the wider homeowner situation, from your homeowner tax deductions to whether your penalty interest is deductible. This page sits under our bijleenregeling guide, which maps the whole sell, buy and own journey. Bijleenregeling is the scheme that carries your old deduction rate over when you move house. Have a tax partner? You jointly choose who claims the deduction. For Priya that means one return and about €3,981 back this year.
How tax on your own home works is on our overview of owning a home.
¹ belastingdienst.nl, Mag ik mijn hypotheekrente altijd aftrekken? · Accessed
² belastingdienst.nl, Minder aftrek voor uw eigen woning als u een hoog inkomen hebt · Accessed
Common questions about the mortgage interest deduction
Can I always deduct my mortgage interest?
Not always. You deduct interest only on a loan for your own home. For a loan from 2013 you must also repay it within 30 years, at least on an annuity or linear basis.