Heffingskortingen Explained
How the algemene heffingskorting and arbeidskorting reduce your Dutch tax bill. Includes 2026 amounts, phase-out mechanics, and practical examples.
Heffingskortingen (literally: "levy credits") are Dutch tax credits that reduce the amount of income tax you owe. Unlike deductions (which reduce your taxable income), tax credits are subtracted directly from your tax bill.
Every Dutch tax resident is entitled to at least two key credits:
- Algemene heffingskorting — The general tax credit (available to everyone)
- Arbeidskorting — The employment tax credit (for people with employment income)
Together, these credits can reduce your annual tax by up to €8,800 (2026). They are automatically applied by your employer in payroll, and finalized when you file your tax return.
Algemene Heffingskorting
The algemene heffingskorting (general tax credit) is available to every tax resident in the Netherlands, regardless of whether they work.
For 2026:
- Maximum credit: €3,115
- Full credit: Up to €29,736 of taxable income
- Phase-out: Gradually reduces to €0 as income increases
- Zero credit: At approximately €78,426 and above
In other words: if your taxable income is below €29,736, you receive the full €3,115. Above that, the credit decreases by approximately €6.40 for every €100 of additional income. By the time you earn €78,426, the credit is gone.
Arbeidskorting
The arbeidskorting (employment tax credit) rewards people who earn income from work. It has a more complex structure with multiple build-up and phase-out segments:
- Build-up phase 1: From €0 to €11,965 — the credit builds at 8.324% of income
- Build-up phase 2: From €11,965 to €25,845 — the credit builds faster at 31.009%
- Build-up phase 3: From €25,845 to €45,592 — the credit increases more slowly at 1.950%
- Maximum: €5,685 (reached at €45,592)
- Phase-out: From €45,592 to €132,920 — the credit reduces at 6.510% per €100
- Zero credit: At €132,920 and above
Phase-Out Mechanics
Understanding the phase-out is crucial for salary negotiations. Here is how the combined effect works:
| Taxable Income | Algemene HK | Arbeidskorting | Total Credits |
|---|---|---|---|
| €25,000 | €3,115 | ~€5,040 | ~€8,155 |
| €40,000 | ~€2,458 | ~€5,577 | ~€8,035 |
| €55,000 | ~€1,498 | ~€5,072 | ~€6,570 |
| €75,000 | ~€219 | ~€3,771 | ~€3,990 |
| €100,000 | €0 | ~€2,143 | ~€2,143 |
| €133,000+ | €0 | €0 | €0 |
Notice that the total credits drop dramatically once income exceeds €55,000. For high-income earners, the credits become negligible. This makes the 30% ruling even more valuable — by lowering your taxable income, you receive higher heffingskortingen.
2026 Credit Amounts
| Parameter | 2025 | 2026 |
|---|---|---|
| Algemene HK maximum | €3,068 | €3,115 |
| Algemene HK phase-out start | €28,406 | €29,736 |
| Algemene HK phase-out rate | 6.337% | 6.398% |
| Arbeidskorting maximum | €5,599 | €5,685 |
| Arbeidskorting phase-out start | €43,071 | €45,592 |
| Arbeidskorting phase-out rate | 6.510% | 6.510% |
All numbers sourced from Belastingdienst.nl (published January 2026).
Historical Maximum Credits (2020–2026)
The maximum heffingskortingen have increased steadily. For a full year-by-year overview of all Dutch tax parameters, see our Dutch Tax Rates History.
| Year | Algemene HK Max | Arbeidskorting Max | Combined Max |
|---|---|---|---|
| 2020 | €2,711 | €3,819 | €6,530 |
| 2021 | €2,837 | €4,205 | €7,042 |
| 2022 | €2,888 | €4,260 | €7,148 |
| 2023 | €3,070 | €5,052 | €8,122 |
| 2024 | €3,362 | €5,532 | €8,894 |
| 2025 | €3,068 | €5,599 | €8,667 |
| 2026 | €3,115 | €5,685 | €8,800 |
Impact on Your Net Income
The heffingskortingen have a significant impact on your take-home pay. Here is a comparison for a €60,000 salary:
| Item | Amount |
|---|---|
| Gross salary | €60,000 |
| Gross Box 1 tax (from brackets) | ~€21,842 |
| Algemene heffingskorting | -€1,179 |
| Arbeidskorting | -€4,747 |
| Net tax after credits | ~€15,916 |
| Credits saved you | €5,926 |
That is nearly €6,000 in tax savings just from heffingskortingen — applied automatically. For the exact calculation with your income, use our calculator.
Frequently Asked Questions
Are heffingskortingen applied automatically?
Yes. Your employer applies them in monthly payroll. However, the final amounts are calculated on your total annual income when you file your tax return. If you changed jobs or had varying income during the year, the final amounts may differ from what was applied monthly.
Do part-time workers get the full credits?
Heffingskortingen are based on your total annual income, not hours worked. A part-time worker earning €30,000 gets the same credits as a full-time worker earning €30,000. However, lower income generally means higher credits due to the phase-out structure.
Can I receive heffingskortingen if I have the 30% ruling?
Yes. The heffingskortingen are calculated on your taxable income (after the 30% deduction). Since the 30% ruling lowers your taxable income, you typically qualify for higher heffingskortingen than without the ruling.
What about other tax credits like IACK?
Beyond the two main credits covered here, there are additional credits such as the inkomensafhankelijke combinatiekorting (IACK, for working parents of children under 12) and the jonggehandicaptenkorting (for young disabled persons). These have their own eligibility rules and are less common among expats.
Do non-resident taxpayers get heffingskortingen?
Qualifying non-resident taxpayers (those earning 90%+ of their worldwide income in NL) are entitled to the same heffingskortingen as residents. Non-qualifying non-residents receive only limited credits.