Types of taxes in the Netherlands
Find out about the various taxes which apply to everyone in the Netherlands. Residents are liable for state taxes on income, wealth and assets as well as local government taxes for the provision of local services.
Everyone in the Netherlands is taxed on their income, wealth and assets (inkomstenbelasting). The government imposes taxes based on the ability-to-pay principle. The amount of tax you pay depends on your level of income. A percentage of your monthly salary is automatically deducted by the Dutch Tax Office (Belastingdienst). At the end of each year, you need to file a tax return (belastingaangifte) where you are required to declare your income and assets. You are sent a final tax notice and in some cases will receive tax back. Read more on how to file your taxes, or find more information at the Tax and Customs Administration, the Belastingdienst.
Municipal taxes and levies
Home owners pay a yearly real estate tax (onroerende-zaakbelasting) based on the value of their property. Real estate includes any building, such as a residence or place of business. Tenants of offices in commercial buildings also need to pay real estate tax. The municipality reassesses the value of all properties every year. This valuation is called the WOZ-waarde (WOZ is short for Wet waardering Onroerende Zaken, or the Immovable Property Tax Act). Tax is based on this valuation. The method of payment varies by municipality. Tenants of social housing annually receive a notification of their accommodation's WOZ-waarde, which has an impact on the maximum rent they can be expected to pay.
Owners of house boats or house arks and tenants of house boats used as office or commercial space are subject to a tax equivalent to the real estate tax: tax for their moveable real estate (roerende ruimtebelastingen). In addition, owner-occupiers and tenants of house boats need to pay recario tax, also known as liggeld, because they occupy waterways owned by the municipality.
Waste collection levy
The waste collection levy (afvalstoffenheffing – AFV) is used for the collection, processing and disposal of household rubbish and the amount depends on the number of occupiers per household. The method of payment for this tax varies by municipality. Owners of residential or business property must also pay a sewage levy (rioolheffing) for their connection to the sewage network.
Every year you are typically taxed for two water taxes (depending on your property). The water board tax(waterschapsbelasting) contributes to regional water system management, such as maintenance of dykes and control of water levels. In addition, there is a pollution levy (verontreinigingsheffing) for properties not connected to the sewage network, and a water purification levy (zuiveringsheffing), contributing to purification processes used for waste water, for all properties connected to the sewage network. The method of payment varies by municipality. Please note: the water taxes do not account for your drinking water usage; this is monitored and charged separately by your local water supplier.
Everyone who owns a car or other motor vehicle pays road tax (wegenbelasting). The amount of tax varies according to the size of vehicle. Heavier vehicles are taxed more than lighter ones and diesel-powered vehicles are taxed more than petrol-driven vehicles. Motor vehicle and/or road tax is collected by the Dutch Tax Office. More information is available on the English website of the Belastingdienst, including a section to help estimate your road tax.
Owners of boats and pleasure cruisers docked in Amsterdam must pay a boating tax (binnenhavengeld) to Waternet. This tax contributes to the maintenance and management of the city's waterways, bridges and public safety on the water. When this tax is paid, the vessel owner is given a vignette that must be clearly displayed on the back of the boat.
Tourist tax for short-term rentals
If you sublet your home in Amsterdam as a holiday rental or short stay apartment (to tourists or other visitors to the city who are not permanently resident), you are required to collect and pay tourist tax to the City of Amsterdam. If you live elsewhere, please check the terms and conditions in your municipality.
As of 2016, Amsterdam residents are not required pay an annual dog tax (hondenbelasting). Please note, pet owners living in neighbouring municipalities may still be required to register their pet and pay an annual fee.
If you require further information, call the city information number 14 020 (Monday to Friday, 08:00 to 18:00).