Hypotheekrenteaftrek (2026) Explained: Who Benefits Most?

Q: Does everyone get HRA?

You must use the house as your main residence and have an annuity or linear mortgage (for new loans since 2013) that pays down the principal.

Q: How long does HRA last?

Maximum 30 years. After 30 years, you can no longer deduct interest.

Q: Do I get the money monthly or yearly?

You can choose. Most people request a 'voorlopige aanslag' to receive it monthly, improving cash flow.

Mortgage Interest Deduction in NL (2026): Who Really Benefits?

The Hypotheekrenteaftrek (HRA) allows Dutch homeowners to deduct the interest paid on their mortgage from their taxable income in Box 1. This effectively lowers the net interest rate you pay.

While it's a powerful benefit, widely quoted "gross vs net" calculations are often too optimistic because they ignore the Eigenwoningforfait (EWF).

What Hypotheekrenteaftrek Is

In plain English: If you pay €10,000 in mortgage interest in a year, you can subtract this amount from your gross salary before calculating income tax.

Deduction Rate: In 2026, the deduction is capped at basic rate (approx 37%) even if you are in the top tax bracket.
Result: You get roughly ~37% of your paid interest back from the tax authorities (Belastingdienst).

Where People Overestimate It

Many people calculate: Interest Paid * 37% = Tax Refund. This is wrong because of the Eigenwoningforfait (EWF).

The EWF is a "deemed income" from owning a home (based on WOZ value). You must add this to your income before you can subtract the interest.

Real Formula: (Mortgage Interest - Eigenwoningforfait) * Tax Rate

If your mortgage is small (or interest rate is low), the EWF might eat up a large chunk of your deduction.

How to Model It in the Calculator

Our calculator handles the net-effect logic automatically, but you can see the impact by toggling the inputs (#hra, #ewf).

Mortgage Rate: Enter the gross rate offered by the bank.
Tax Bracket: The calculator uses the standard basic rate for deduction (since the top-rate deduction was phased out).
Result: The "Net Monthly Costs" shown in the breakdown will be lower than the gross payments.

Interaction with EWF

The Eigenwoningforfait reduces your benefit.

Woningwaarde: €500,000
EWF (approx 0.35%): +€1,750 deemed income.
Interest Paid: €15,000.
Deductible: €15,000 - €1,750 = €13,250.
Tax Benefit: ~37% of €13,250 = €4,902.

Note: Without EWF, the benefit would have been ~37% of €15,000 = €5,550.

Sensitivity and Decision Impact

High Interest Rates: HRA is more valuable. When rates are 4-5%, the absolute euro amount you get back is substantial.
Low Interest Rates: When rates were 1%, HRA was negligible because the EWF often cancelled it out (Hillen Act, which is being phased out).

FAQ

Does everyone get HRA?

To qualify for new mortgages (post-2013), you must carry an Annuity or Linear mortgage and pay it off fully over 30 years. Interest-only mortgages generally do not qualify for tax deduction for new buyers.

How long does HRA last?

It is limited to a maximum of 30 years.

Do I get the money monthly or yearly?

You can request a monthly refund (voorlopige aanslag) from the Belastingdienst. This helps cash flow significantly.