Are you going to benefit fiscally more this year?
This has changed for private individuals in 2023
Have any Dutch tax regulations that apply to your situation changed as of 2023? Check it out in the overview below, in which Lupacompany briefly explains what has changed. Want to know more? Click on the headers for more detailed information.
From 2023, the minimum wage will increase from € 1,756.20 to € 1,934.40 gross per month. The high rate of increase (more than 10%) should benefit the spending space of people with a low income.
The amount of which is linked to the minimum wage (AOW, WAO, Wajong, Sickness Insurance Act and WIA) increase with the minimum wage. For example, the single person's state pension rises to a net 1353.11 euros.
The much-discussed price ceiling for energy came into effect in 2023. The tariffs are set at 1.45 per m3 of gas (up to 1200 cubic meters per year), 0.40 per kWh of electricity (up to 2900 kWh annually) and 47.38 per GJ of district heating (up to 37 GJ). Are you above the annual norm? Then you pay the full rate of your provider on that consumption.
Care allowance, childcare allowance and housing allowance increase. For example, from 2023, a single person will be entitled to a maximum of € 145 care allowance per month, instead of € 111 in 2022. Childcare allowance increases by 7% (day care and after-school care) and 5% (childminder care). In 2023 you are entitled to rent allowance up to a maximum rent of 808.06 per month. In 2022, this was € 763.47.
The child-related budget increases: for the first and second child, the maximum amount is € 356 per year. The maximum amount from the third child is € 468.
In order to reduce the tax distance between employees and self-employed persons, the employment tax credit will be increased in percentage terms. Persons in both groups with an annual income of up to € 37,626 (was € 36,649 in 2022) benefit from this. Did you receive an employment tax credit as the least-earning partner? Then you will deteriorate: from 2023 this payout will expire.
The tax-free rate for assets increases from € 50,650 to € 57,000. The amount above that will be taxed at 32% as of 2023 (was 31%). The way in which the return is determined will change as of 2023. For example, less tax is paid on savings (with low returns) than on investments (with a higher return).
Are you entitled to a mileage allowance for your commute? Then the government will make a contribution to the increased travel costs, by increasing the maximum tax-free travel allowance from 19 to 0.21 cents per kilometer. This increase also applies to other deductible mileage allowances, such as travel expenses for sick visits.
The maximum tax-free homework allowance increases from € 2 to € 2.15. If you receive a homework allowance from your employer, the amount per day may therefore be increased tax-free to € 2.15.
Donations to charities with an ANBI status could be fully deducted from your income tax. From 2023, the maximum annual amount that you can donate tax-free has been reduced to € 250,000. This is to prevent donating as a means of evading taxes.
As in previous years, the maximum mortgage interest deduction will decrease: in 2023, the percentage will decrease from 40 to 36.93% for homeowners whose income exceeds € 73,031 (bracket 2). This means that the deduction is aligned with that of homeowners with an income in bracket 1 and higher incomes therefore receive the same deduction as with lower incomes.
Jubilee-tonne
Donating a 'jubilee tonne' - a tax-free gift of a bit over a € 100.000 for mortgage costs - would favor first-time buyers in the housing market who are financially supported in this way. In order to promote equal opportunities for starters, making such a high tax-free donation, will no longer be possible from 2023. The one-off exemption was reduced to € 28,947 as of 1 January.
To prevent investors from buying houses, the transfer tax for people who buy a house without occupying it themselves increases from 8 to 10.4%. The maximum home value for starter exemption on the transfer tax will be € 440,000. This was € 400,000. For other buyers, the rate remains 2%.
Owner-occupied flat rate (additional info in Dutch only)
The owner-occupied flat rate is falling. The amount that the tax authorities add to the income will go from 0.45% (2022) to 0.35% of the WOZ value for homes up to 1.2 million. Over the value above 1.2 million, you will retain a 2.35% addition to your income.
As of 2023, the cost-sharing standard for young people who live with a parent who is on welfare, has been changed: welfare benefit recipients with adult children were cut back on their benefit until 1 January when their children living at home became 21 years. The age for the cost-sharing standard is now 27.
To discourage flying, the Dutch tax on airline tickets will increase from € 7.95 to € 26.43 from 2023.
Where private individuals were previously able to recover the VAT on solar panels from the tax authorities, this procedure has been simplified by 2023: by making the purchase of solar panels VAT-free, it will be easier to purchase them for tax purposes. Suppliers of solar panels will now invoice the 0% VAT rate.
The subsidy on new electric cars will decrease from € 3,350 to € 2,950. For second-hand cars, the subsidy is, just like last year, € 2,000. The addition for an electric car from the company in 2022 was 16% to € 35,000 on the catalogue value and 22% on the added value. The percentages remain the same, but the foot for the 16% rate has been reduced: from now on you pay up to € 30,000 16%, and over the rest of the catalogue value 22%.
In 2023, the age at which you are entitled to AOW will have risen again. From 66 years and 7 months you are now entitled to the benefit
For a more comprehensive overview of fiscal changes as of 2023, download this pdf (in Dutch only). If you have any further questions about what legal or fiscal changes imply for your specific situation, please contact us. We are happy to help!