Capacity to pay

The capacity to pay is the financial leeway you have to be able to pay the municipal taxes.

In determining the capacity to pay, the Municipal Tax Department looks at the information and regulations which apply at the time you submit your request for a tax waiver. The capacity to pay will be calculated over the period of 12 months as of this date.

Standard amount

The standard amount is determined by the government and should be used to assess your right to a tax waiver. The standard amount applicable to you depends on your personal situation. This standard amount includes amounts for a standard rent and standard health insurance contribution. This is why you need to deduct these amounts from your rent or mortgage interest rate and from your health insurance contribution. Look at the standard amounts on the website of VNG.

Cost-sharing standard

Starting in 2018 the cost-sharing standard applies to the tax waiver. If you share your home with other people aged 21 years or older, the cost-sharing standard could apply to you. The larger the number of housemates sharing the costs, the lower the standard amount for living costs becomes because you can share the living costs with your housemates.

Not all housemates are cost-sharing housemates. The following housemates are not cost-sharing housemates:

  • housemates younger than 21 years
  • housemates who are studying and have the right to student grants
  • housemates who are in the Beroeps Begeleidende Leerweg programme
  • landlords or tenants with whom you have a commercial contract and where a commercial rent is being paid.

Also see

Published: 8 May 2015Modified: 23 October 2020