Tax credits / levy rebates
(Heffingskortingen)
The Dutch income tax system also offers some tax credits (or levy rebates). Some of the credits apply to everybody and others only apply to taxpayers in certain situations. The two most common tax credits are considered in the payroll, due to which the credit is applied to your monthly income, resulting in higher net wage.
We listed the tax credits (Heffingskortingen) below.
General tax credit (Algemene Heffingskorting)
The general tax credit applies to all resident taxpayers of the Netherlands and reduces any income tax liability. This tax credit is income depending and because of the fact that the credit applies to every resident taxpayer. The general tax credit first grows with income and from a certain amount of annual income it is being reduced.
The general tax credit is usually processed in the payroll.
Labor tax credit (Arbeidskorting)
The labor tax credit applies to taxpayers who work. This tax credit is income depending and because of the fact that the credit applies to every working resident taxpayer, this credit is often considered in the payroll. The labor tax credit first progressively grows with income and from a certain amount of annual income it is being reduced. The income / credit tabel for the year 2026 for the labor tax credit can be found here.
The labor tax credit is usually processed in the payroll.
Income depending combination credit (Inkomensafhankelijke combinatiekorting)
This tax credit applies to taxpayers who arrange daily care of a child (under the age of 12 on January 1 of the concerning year), who is registered at the household address for more than 6 months in a calendar year.
- This credit only applies one time in the year (no matter how many children)
- In case of partners, the partner with the lowest income will get the credit
- conditions have slightly changed as of 2025
This tax credit is not considered in the payroll, so if you are entitled to this tax credit, you need to claim it when filing an income tax return.
Tax credit for working elderly taxpayers (Ouderenkorting)
When you reached the state pension age (AOW leeftijd) but still work, you may be entitled to this elderly taxpayers' tax credit.
Tax credit for young disabled taxpayers (Jonggehandicaptenkorting)
You may be entitled to this tax credit in case you are entitled to a Wajong (social security) benefit or if you are entitled to support in finding a job on basis of Wajong, you may be entitled to this tax credit.
Tax credit for green investments (Heffingskorting voor groene beleggingen)
If you invested in certain specified Green investment plans, you may be entitled to this tax credit. A list of qualifying green investment plans for 2026 can be found here (website Dutch tax authorities).