Dutch Mortgage Interest Deduction Calculator 2025
🏠 Free ToolCalculate your tax benefit from Dutch mortgage interest deduction in 2025, including imputed rental value and effective interest rate after deduction.
| Component | Per year | Per month |
|---|---|---|
| Gross mortgage interest | €12,000.00 | €1,000.00 |
| Imputed rental value (addition) | +€1,225.00 | +€102.08 |
| Net deductible | €10,775.00 | €897.92 |
| Tax benefit (@ 36.97%) | €3,983.52 | €331.96 |
| Net interest costs | €8,016.48 | €668.04 |
How it Works
The mortgage interest deduction (hypotheekrenteaftrek) is one of the most significant tax benefits for homeowners in the Netherlands. You can deduct paid mortgage interest from your taxable income in Box 1. In 2025 the maximum deduction rate is 36.97%, equal to the first bracket rate.
Offsetting the mortgage interest deduction is the eigenwoningforfait: an addition to your income based on the WOZ value of your property. In 2025 this is 0.35% of the WOZ value. Your net tax benefit is the difference between the deductible mortgage interest and the eigenwoningforfait, multiplied by the deduction rate.
The tax benefit makes the effective mortgage rate lower than the nominal rate. At a mortgage rate of 4% and a deduction rate of 36.97%, the effective rate drops to approximately 2.5%, depending on the eigenwoningforfait amount.
Note that the mortgage interest deduction applies for a maximum of 30 years and only for annuity or linear mortgages. Interest-only mortgages taken after January 1, 2013 do not qualify for interest deduction.
Frequently Asked Questions
How does mortgage interest deduction work in the Netherlands in 2025?
You can deduct mortgage interest in Box 1 at a maximum rate of 36.97%. The imputed rental value (eigenwoningforfait, 0.35% of WOZ value) is added to your income. The difference provides a tax benefit.
What is the eigenwoningforfait?
The eigenwoningforfait (imputed rental value) is a percentage of the WOZ property value added to your income. In 2025 this is 0.35% for properties with a WOZ value up to €1,310,000.
What is the maximum deduction rate in 2025?
Since 2023 the maximum deduction rate equals the first bracket rate: 36.97%. Previously it was higher and was gradually reduced.
Does the deduction apply to all mortgages?
The deduction only applies to mortgages on your primary residence and only if the mortgage is fully repaid within 30 years (annuity or linear). Interest-only mortgages taken after 2013 do not qualify.
What is the effective interest rate after deduction?
The effective rate depends on your mortgage rate and the deduction percentage. At 4% interest and 36.97% deduction, the effective rate drops to approximately 2.5%, depending on the eigenwoningforfait.