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. You declare this home in Box 1, along with your income from work. A holiday home or rental property belongs in Box 3 instead. 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.
The cap matters above €78,426 the Belastingdienst taxes income above this at 49.50%. Your 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. Other costs of owning the home have their own rules, set out on our homeowner tax deductions page.
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.
Leave the Netherlands with the home empty and for sale? You keep the deduction for that year and the three years after. Rent the home out instead? You cannot deduct the interest for the rental period. A qualifying non-resident taxpayer deducts on the same conditions as residents.
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 nobody deducts at more than that maximum.
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. We took both figures from belastingdienst.nl on 6 August 2026.
| Figure | 2026 |
|---|---|
| Maximum deduction rate | 37.56%37.48% in 2025 |
| Cap matters on income 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 deducts the small amount it adds for your home from your interest. 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 2026.³ We took this figure from belastingdienst.nl on 6 August 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. Paid a fee to end a fixed rate early? Read whether your penalty interest is deductible.
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 | Priya's interest in 2026 | €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 |
“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. Arrived this year? Then you file an M form, the return for a part year in the Netherlands.
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. Selling your home and buying another? Then the bijleenregeling may limit how much interest you can deduct. This page is part of our bijleenregeling guide. That guide maps the whole journey of selling, buying and owning. Have a tax partner? You jointly choose who claims the deduction. Priya files alone, so she gets about €3,981 back for 2026.
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
³ belastingdienst.nl, Eigenwoningforfait 2026 · 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. Borrowed from a foreign bank? The same conditions apply. For a loan from 2013 you also report the loan details in your tax return.
How much mortgage interest can I deduct in 2026?
You deduct at a maximum rate of 37.56% in 2026. You do not get the full interest back. The rate is the share of the interest that lowers your tax.
Is interest on an interest-only mortgage deductible?
Only for pre-2013 loans that you never increased. Take out an interest-only loan today and its interest falls outside the deduction.
How long can I deduct my mortgage interest?
For a maximum of 30 years per loan. The clock begins when you close the mortgage. Raise it later and the extra amount gets its own fresh term. For loans from before 2001 the clock started on 1 January 2001.
Do I get the deduction automatically?
Only if you file a tax return. The Belastingdienst usually pre-fills the interest, so you check that it is right. In your arrival year you file an M form, so check each figure yourself.
Can I get the money back every month?
Yes, with a voorlopige aanslag. The Belastingdienst pays your deduction out in monthly amounts instead of once a year.
Does the 30% ruling affect my mortgage interest deduction?
No, the deduction works the same way. The 30% ruling lowers your taxable salary, and the deduction still saves up to 37.56%.
What happens to my deduction if I leave the Netherlands?
It depends on what you do with the home. If it stands empty and for sale, you keep the deduction for the year it empties and the three years after. If you rent it out, you cannot deduct the interest for the rental period. A qualifying non-resident taxpayer (kwalificerend buitenlands belastingplichtige) deducts on the same conditions as residents.