Calculate rental value for 2019

The 2019 rental value is an addition to your 2019 income if you have your own home. As if you don’t already pay enough income tax and enough tax on your own home, the value of your house is converted into a taxable rental value via calculation rules. Rental value lump sum is also often found under the name notional rental value. For an expensive home, an additional tax of at least more than 7,400 euros is possible. In 2019, you must also add part of the rental value to your income if you have fully paid off the mortgage on your home. This is due to the abolition of the Hillen Act in 2019. You can calculate this fixed amount yourself.

What is the rental value?

The rental value is based on the theoretical assumption that you can always rent out your own home and thus earn extra income. And you would have to pay tax on that. It is a relic from the time of Den Uyl when he was looking for money. This relic still exists and still costs you money. Only the name has changed, usually people talk about notional rental value because the assumption of rental was not very valid.

Rental value and notional rental value 2019

The rental value is related to the value of your home. Not the economic value, but the WOZ value. Only if your house is not worth more than 12,500 euros you will not pay a lump sum, but most of us quickly pay 0.5% to 0.65%:

Rental value lump sum 2019:

WOZ value

Rental value 2019

up to 12,500


between 12,500 and 25,000

0.25 percent

between 25,000 and 50,000

0.35 percent

between 50,000 and 75,000

0.50 percent

between 75,000 and 1,080,000

0.65 percent

from 1,080,000

7,020 plus 2.35 percent for the value exceeding 1,080,000 euros

Calculate rental value for 2019 tax return

You can calculate your rental value using the table above. Suppose your house is worth 300,000 euros, then the rental value is equal to 1,950 euros. You fill this in on your tax return and then you pay up to 52% tax on it, depending on the level of your income. That is 1,015 euros per year. In a lower tax rate you still pay approximately 800 euros net. Just because you have your own home. This results in a significant increase in the tax on your home due to a higher WOZ value.

The villa tax

For expensive houses we can certainly talk about villa tax. The rental value is then at least 7,020 euros, net of quickly 3,500 euros per year. If you have an expensive home, you will pay a rental value of 2.35% in 2019. Huge amounts. The only way to avoid such a levy for a number of years is to pay off the mortgage in full. Anyone who does not have a mortgage and therefore does not deduct mortgage interest can use the deduction for no or small home ownership debt on their tax return. There will be no addition until 2019, from 2019 the addition will be 1/30th of the rental value. In 2020 that will become 1/15th and so on. That is still better than a full addition. The full addition will not be made until 30 years from now, as the Hillen Act will be gradually abolished over a period of thirty years.

Low home acquisition debt, small mortgage

If you have a relatively small mortgage or make extra repayments, the rental value may be higher than your mortgage interest deduction. Then use the deductible if you have little or no home acquisition debt. That makes a significant difference, even though this advantage will decrease slightly every year from 2019 onwards.

read more

  • Notional rental value 2018
  • Real estate & check the WOZ value of your house carefully (2020)