You are viewing a guide with rates and examples for 2025.
Master Dutch tax credits in 2025. Learn how to maximize your arbeidskorting, algemene heffingskorting, IACK, and ouderenkorting to reduce your tax burden.
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Open calculator2025-12-12
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Maximum Credit
€5,599
For income €26,288 - €43,071
Phase-out starts
€43,071
The arbeidskorting (employment tax credit) is the most valuable tax credit for working individuals in the Netherlands. In 2025, you can receive up to €5,599 if your income is between €26,288 and €43,071. This credit is automatically applied by your employer through payroll, but you can claim any unused amount in your annual tax return.
The credit starts at €980 for incomes above €12,169 and increases as your income rises. After reaching the maximum, it gradually phases out for higher earners, reaching zero at incomes above €129,078. If you have multiple employers, ensure only one applies the credit to avoid over-crediting.
| Income Range | Credit Amount |
|---|---|
| €0 - €12,169 | 8.05% of income |
| €12,169 - €26,288 | €980 + 30.03% |
| €26,288 - €43,071 | €5,599 (max) |
| €43,071+ | Decreases 6.51%/€ |
This usually doesn’t change your final annual tax, but it can prevent big repayments if you have multiple employers or your income changes during the year.
Maximum Credit
€3,068
For income below €28,406
The algemene heffingskorting (general tax credit) applies to all Dutch tax residents. In 2025, the maximum amount is €3,068, which phases out for incomes above €28,406. The phase-out rate is 6.34%, meaning for every €1,000 above the threshold, you lose approximately €63.
Unlike the arbeidskorting, the general tax credit can be transferred to a fiscal partner who has insufficient income to use it. This makes it valuable for households with one higher-earning partner.
The inkomensafhankelijke combinatiekorting (IACK) supports working parents with young children. To qualify in 2025, you must have at least one child under 12 living at your address and earn at least €6,145 from employment.
The maximum credit is €2,986, calculated as 11.45% of income above the minimum threshold. If you're a couple, only the lower-earning partner can claim this credit. Single parents automatically qualify if they meet the income requirement.
As a working parent with children under 12, you may be eligible for up to [[taxCredits.combinationMax]] in combination credit.
The ouderenkorting (elderly tax credit) provides additional support for taxpayers who have reached the AOW retirement age. In 2025, the maximum credit is €2,035, available for those with income below €45,308.
Additionally, single elderly taxpayers can receive an extra €531 through the alleenstaande ouderenkorting. These credits recognize the often-fixed income situation of retirees and help reduce their tax burden.
At 67 you become eligible for elderly tax credits (ouderenkorting). Plan your income transition carefully.
As you're 67 or older, you qualify for elderly tax credits up to [[taxCredits.elderlyMax]].
Most tax credits are automatically applied by your employer or pension provider through the payroll tax system. However, you should always file an annual tax return to ensure you receive your full entitlement.
To claim credits: 1. Verify your employer is applying credits correctly on your payslip 2. File your annual tax return by May 1st 3. Check if your fiscal partner can use any unused credits 4. Consider adjusting your provisional assessment if you expect significant credits
Use our gross-to-net calculator to see exactly how much you'll receive in credits based on your income.
Use our free calculators to calculate your personal situation:
The maximum arbeidskorting (employment tax credit) in 2025 is €5,599. You receive this maximum if your income is between €26,288 and €43,071.
The algemene heffingskorting (general tax credit) is maximum €3,068 in 2025 for incomes below €28,406. Above this amount, the credit phases out at 6.34% until it reaches zero at €76,818.
If you have no income but your fiscal partner does, you may be able to transfer unused tax credits (uitbetaling heffingskorting). This applies to the general tax credit and requires filing a joint tax return.
The maximum arbeidskorting increased from €5,532 in 2024 to €5,599 in 2025. The income thresholds were also adjusted upward. Use the year selector above to compare exact amounts.
In 2026, tax credits are expected to be slightly lower due to less-than-full indexation. The exact amounts depend on the Belastingplan 2026. Use our year selector to see preliminary 2026 figures.
Official overview of all Dutch tax credits
Disclaimer: This guide is intended for general informational purposes and does not constitute personal tax advice. Please consult a tax advisor for advice about your specific situation.
