How does the municipality calculate your capital?

To determine if you are eligible for a tax waiver, the municipality will first look at your property or assets. You cannot get a tax waiver if you have capital. If you do not have capital, the amount of money you have to spend (capacity to pay) will be calculated.

    The following things count as capital:

    Household effects

    The value of your household effects count as capital if the sale value is more than € 2,269. Regular household contents are usually worth less when they are sold second-hand.

    Savings

    In certain situations the balance on your bank account(s), savings account(s) and your investment account(s) will be counted as capital if this is higher than the exempted amount granted to you. You can calculate the exempted amount yourself by adding up the following monthly amounts:

    1. the standard amount which applies to you for living costs in the Participation Act
    2. your monthly rent/mortgage interest minus the standard rent
    3. your health insurance contribution minus the standard contribution
    4. if you have the right to a child-related budget: the amount of the maximum entitlement to this

    Look at the standard amounts on the website of VNG.

    Does the amount in your bank account(s) and savings account(s) come out higher than the above sum? This amount will then count as capital and you will not get a tax waiver.

    Belangrijke informatie:

    • Were you born before 1 January 1935? Then an extra exemption of € 2,269 will apply to you.
    • Was your housemate born before 1 January 1935? Then an extra exemption of € 2,269 will apply to your housemate.

    Own home

    If you are the owner of a residential property and the property has a capital gain, you will not be eligible for a tax waiver. The property value of your residential property minus your current mortgage will determine whether you have a capital gain. The value of the capital insurance for the residential property you own will be subtracted from your current mortgage, if this is applicable. The value of other properties you own will also count as capital. Examples include a second home, a parking space, garage or storage area.

    Other assets

    Do you have a motor vehicle (for example: a car, motorbike, camper) and is its value more than € 2,269? Then it counts as capital and can result in your request being rejected. This is not the case if you or your housemate gets a disabled resident's parking permit or a Wmo allowance for the costs of using the vehicle. You will not be eligible for a tax waiver if you and/or your housemate has more than 1 vehicle.

      Also see

          Published: 12 May 2015Modified: 7 February 2022