How does the municipality calculate your capital?

To determine if you are eligible for a tax waiver, the Municipal Tax Department first looks 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 determined.

    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. Usually normal household contents are worth less when they are sold second-hand.

    Savings

    In certain situations the balance on your bank account(s), savings account(s) and your shares 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 amounts:

    1. the amount which applies to you under the standard amount for living costs in the Participation Act
    2. your monthly rent/mortgage interest rate minus the standard rent
    3. your health insurance contributions minus the standard contribution
    4. if applicable: the amount you will receive from the child-related budget.

    Look at the standard amounts on the website of the 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.

    • Were you born before 1 January 1935? Then you will get an extra exemption of € 2,269.
    • Was your partner born before 1 January 1935? Then he/she will get an extra exemption of € 2,269.
    • If you and your partner were both born before 1 January 1935, then you will get an extra exemption of € 4,538.

    Own home

    If you are the owner of a home and if you have a capital gain, you will not be eligible for a tax waiver. The value of your home minus your current mortgage debt will determine whether you have a capital gain. The value of other properties you own are also considered 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, caravan, camper or boat) and is the 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 partner has 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):

    • have more than 1 vehicle, or
    • have a caravan in addition to 1 motor vehicle.
    Read more about the Tax waiver

        Published: 12 May 2015Modified: 23 October 2020