Mortgage Interest Deduction

In short

Mortgage interest relief lets you deduct the interest you pay on your mortgage from your taxable income. You therefore pay less income tax, so your net monthly costs are lower than your gross costs. In 2026 the deduction is capped at 37.56%, and that cap only affects people whose income falls in the top tax bracket.

What is mortgage interest relief?

In the Netherlands you pay income tax on your income. If you have a mortgage for your own home, you may deduct the mortgage interest you pay from that income. Your taxable income falls, so you pay less tax. That tax benefit is mortgage interest relief.

Conditions for mortgage interest relief

To qualify for the deduction you must meet a number of conditions:

• Since 1 January 2013 you take out a mortgage that you repay in full within 30 years. In practice that means an annuity or linear mortgage.
• You start repaying immediately according to that schedule.
• The home is your main residence. The deduction does not apply to a second home or buy-to-let property.
• The deduction applies for a maximum of 30 years per home.

The "bijleenregeling" (additional borrowing rule)

If you sell your home with equity and buy a new home within three years, you must use that equity for the new home. If you do not, the additional borrowing rule applies: you then only qualify for relief on the purchase price minus the equity.

Example

Your equity is € 30,000 and your new home costs € 400,000. If you take out a € 400,000 mortgage, you only get relief on € 400,000 − € 30,000 = € 370,000.

Transitional rules for older mortgages

If you took out your mortgage before 2013, you fall under the transitional rules. For that part of your loan the old rules apply and you do not have to repay on an annuity or linear basis. If you later borrow a higher amount, the new rules apply to that higher portion.

Maximum deduction rate by year

Since 2020 the maximum deduction rate has been reduced at an accelerated pace. That phase-down is now complete: the rate only moves with the basic income-tax rate.

Year	2021	2022	2023	2024	2025	2026
Maximum deduction rate	43%	40%	37.05%	36.97%	37.48%	37.56%

Important: this cap only applies to those with income in the top tax bracket. If you fall below it, you simply deduct the interest at your own income-tax rate.

Calculating mortgage interest relief

Here is a simplified example. In reality the imputed home value (eigenwoningforfait) slightly reduces your benefit.

• In one year you pay € 9,000 in mortgage interest.
• You deduct that interest at a rate of 37.56%.
• Your tax benefit is then roughly € 9,000 × 37.56% = € 3,380 per year, or about € 282 per month.

The actual benefit depends on your income, your home value and the imputed home value. Want to see how the deduction feeds through to your net monthly costs? Calculate it here. Want to know what the deduction means for your net costs? Request a free advice session.

Frequently asked questions

How much is mortgage interest relief in 2026?

You deduct the interest at your own tax rate, up to a maximum of 37.56%. That cap only applies to incomes in the top bracket.

Does the deduction apply to every mortgage type?

For new mortgages, only to the annuity and linear mortgage, because those repay in full within 30 years. Older mortgages may fall under the transitional rules.

For how long may I deduct the interest?

A maximum of 30 years per home.