Is my AOW payment taxed?

Yes, AOW is taxable income in box 1. The SVB withholds payroll tax but also settles the tax credits, which means most AOW recipients pay little to no tax.

What tax rate applies to AOW recipients?

AOW recipients no longer pay AOW premiums, which means the rate in the first bracket is around 19% instead of 37% for workers.

Can I get tax back as an AOW recipient?

Yes. If you have high healthcare costs, have made donations, or if the elderly tax credit has not been fully settled, you can get money back via the annual tax return.

How much is the elderly tax credit for AOW recipients in 2026?

The elderly tax credit is €2,035 at an aggregate income up to €44,770. Single people are additionally entitled to the single person elderly tax credit of €478.

I receive both AOW and a pension, will I have to pay extra?

Possibly yes if both parties apply the full tax credit. You can ask the pension fund not to apply the tax credit to prevent a back-payment.

Do I have to file a tax return if I only receive AOW?

Not required if you don't receive a tax return letter, but filing a tax return can be beneficial if you have healthcare costs, donations or other deductions.

AOW and tax 2026 – how much tax do you pay on your AOW?

📅 Updated: April 2026 ⏱ Reading time: 6 minutes ✍ Belastinghulp Zaanstad

Many AOW recipients are surprised when they hear that their AOW payment is taxed. At the same time, as an AOW recipient you are entitled to special tax credits that strongly reduce your tax burden – sometimes to zero. In this article we explain how the tax on AOW works, how much you pay and when you can get money back.

Is AOW taxable?

Yes, state pension (AOW) is taxable income. The SVB (Sociale Verzekeringsbank) treats your AOW payment as wages from former employment. That means payroll tax is withheld before you receive your net AOW.

When calculating the payroll tax, the SVB already takes into account the elderly tax credit and the general tax credit. In most cases, you therefore pay little to no tax on your AOW — especially if you have no other income sources.

Rule of thumb: For a single-person AOW (around €1,400/month gross in 2026) plus the full elderly tax credit and general tax credit, the net withholding is often €0 to €50 per month.

What tax rate applies to state pension (AOW) recipients?

AOW falls in box 1 (income from work and home). Because AOW recipients no longer pay AOW premiums, their tax rate is lower than that of working people:

Income (box 1)	Rate for AOW recipients	Rate for workers
Up to €40,502	approx. 19.07%	36.97%
€40,502 – €76,817	36.97%	36.97%
Above €76,817	49.50%	49.50%

* Indicative 2026 rates. The exact rate depends on your year of birth (before or after 1946).

Tax credits for AOW recipients

Although AOW is taxed, AOW recipients are entitled to credits that significantly reduce the tax:

General tax credit (algemene heffingskorting) — max. €3,362 in 2026, phased out based on income
Elderly tax credit (ouderenkorting) — €2,035 at incomes up to €44,770
Single person elderly tax credit (alleenstaande ouderenkorting) — €478 extra if you have no tax partner

The SVB already settles these credits in the monthly payroll tax. If you have multiple income sources (e.g. AOW + pension), the credit at one source may be set too high, and a back-payment can arise later.

When can you get tax back?

You can get money back if:

The elderly tax credit is not fully settled by the SVB or pension fund
You have had high healthcare costs (personal contributions, dentist, aids)
You have made donations to a recognised charity (ANBI)
You have an owner-occupied home with (remaining) mortgage interest
Too much payroll tax has been withheld on multiple income sources

When must you pay extra?

You may have to pay extra if:

You receive a supplementary pension or annuity in addition to AOW, and the full tax credit has been applied to both sources
You have box 3 wealth above the exemption (€57,684 single / €115,368 together)
You have an owner-occupied home and the imputed rental value (eigenwoningforfait) is higher than the mortgage interest

Tip: Do you receive both AOW and a supplementary pension? Ask your pension fund not to apply the tax credit if the SVB is already doing so. This way you prevent an unexpected back-payment.

We check your AOW tax return

It's easy to miss credits or to pay too much if you have multiple income sources. We come to your home, check your annual statements and make sure you don't pay more than necessary.

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