What is the elderly tax credit?
The elderly tax credit is a tax credit for people who, on 31 December of the tax year, have reached the AOW retirement age. A tax credit works differently from a deduction: the amount is deducted directly from the tax you owe, not from your taxable income. That makes it extra valuable.
The credit is automatically processed when you file an income tax return. You don't have to apply for anything extra — but you do have to file a tax return to receive it.
Example: You are 70 years old, an AOW recipient and have an income of €22,000. You are entitled to the full elderly tax credit of €2,035 (2026). This amount is deducted directly from your tax assessment.
Elderly tax credit amounts 2026
The amount of the elderly tax credit depends on your aggregate income (box 1 + box 2 + box 3 combined). There are two rates in 2026:
| Aggregate income | Elderly tax credit |
|---|---|
| Up to and including €44,770 | €2,035 |
| €44,770 – €57,310 | Phased out (6.51% per €1,000 above the limit) |
| Above €57,310 | €0 |
* Amounts are indicative for 2026. Definitive amounts are published by the Belastingdienst (Dutch tax authority).
Most retirees in Zaanstad fall well within the first bracket and receive the full credit. Do you have a supplementary pension and savings (box 3) in addition to your AOW? Then your aggregate income may turn out higher — let us calculate this for you.
Single person elderly tax credit
Are you single and AOW-entitled? Then in addition to the regular elderly tax credit, you are also entitled to the single person elderly tax credit. In 2026 this is €478. You receive both credits simultaneously via your tax return.
You are single if you have no tax partner on 31 December of the tax year. Living together with a child, family member or friend doesn't count as a tax partnership.
How do you receive the elderly tax credit?
There are two ways the elderly tax credit comes to you:
- Via the payroll tax — If you receive AOW or pension, the paying body (SVB or pension fund) already takes the elderly tax credit into account in the monthly payment. You then already pay less wage tax.
- Via the income tax return — Do you have multiple income sources or is the credit not fully settled in the payroll tax? Then you receive the remaining amount via your annual tax return.
In practice it is wise to always file a tax return, even if you think everything is already settled. We regularly see seniors leaving hundreds of euros unnecessarily on the table.
Combination with other credits
The elderly tax credit doesn't stand alone. As a retiree you may also be entitled to:
- General tax credit (algemene heffingskorting) — everyone is entitled to this (income-dependent)
- Single person elderly tax credit — if applicable
- Healthcare benefit — at an income up to approx. €38,000 (single) or €48,000 (together)
- Healthcare costs deduction — high medical costs are partly deductible
We file your tax return for you
Many seniors don't file a tax return because they think they don't have to pay anything. But precisely if you owe little tax, a tax return can lead to a nice refund via the tax credits. We make sure all credits are correctly applied.
Do you know a retiree who doesn't know this? Forward this article.
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