It’s that time of year again! If you’re registered here, you are required to pay municipal taxes in the Netherlands. Everyone will automatically receive an invoice around Februrary/March for these taxes based on the address where they are registered. Municipal taxes are collected by local municipalities (gemeenten) to fund public services and infrastructure. While the exact rates may vary slightly from one municipality to another, the types of taxes are generally consistent across the country.
Below is an overview of the most common municipal taxes in the Netherlands expats are likely to encounter:
1. Property tax (Onroerendezaakbelasting, OZB):
- What is it? Property tax is based on the value of the property, as determined by the municipality. This is always paid by the property owner.
- Who pays it? Homeowners and property owners.
- Rate: The rate depends on the municipality and is calculated as a percentage of the property’s value (assessed by the municipality). The rates can vary between around 0.1% and 0.3% of the property’s value.
2. Waste collection tax (Afvalstoffenheffing):
- What is it? This tax is for the collection and disposal of waste (garbage collection). The amount you pay may depend on the size of your household or the type of waste service you use.
- Who pays it? Residents, including renters.
- Rate: The fee can either be a fixed amount per household or based on the amount of waste produced. The cost can vary depending on the municipality, but it is typically around €350 per year for a 1-person household and around €450 per year for a 2+ person household.
3. Waterboard tax (Waterschapsbelasting):
- What is it? This tax is to fund the maintenance and management of water systems. These systems include dikes, canals, stormwater management, and flood prevention measures. The goal is to protect the country from flooding, ensure proper drainage, and maintain the quality of water in rivers and canals. The tax can be broken down into three main components:
- Water system levy (Watersysteemheffing): This levy is intended for the general maintenance of flood defenses, waterways, and water purification.
- Purification levy (Zuiveringsheffing): This levy is used to purify the wastewater discharged by households and businesses.
- Pollution levy (Verontreinigingsheffing): This levy applies to businesses that discharge directly into surface water and is intended to cover the costs of water pollution.
- Who pays it? Homeowners, property owners and residents, including renters.
- Rate: The rate for waterschapsbelasting depends on the specific water authority and the size or value of your property, as well as the water services required for that location.
- Water system levy (Watersysteemheffing): this is broken down in a part for the homeowner/property owner and the resident (renter). On average the rate for the resident is €200 per year.
- Purification levy (Zuiveringsheffing): this is paid by the resident (renter). On average the rate for 1 resident is €90 per year and for 2 or more residents this is €270 per year.
- Pollution levy (Verontreinigingsheffing): Only for business owners, not depending on whether it’s the property owner or resident (renter).
4. Sewerage tax (Rioolheffing):
- What is it? This tax covers the maintenance and use of the local sewer system.
- Who pays it? Homeowners and sometimes tenants (if specified in the rental contract).
- Rate: The rate is typically based on the value of the property or the amount of water used by the household. It can range from €100 to €200 per year, depending on the municipality.
5. Dog tax (Hondenbelasting):
- What is it? This tax is paid if you own a dog. The amount varies by municipality, and there may be exceptions (such as for service dogs).
- Who pays it? Dog owners.
- Rate: The tax can range from €30 to €200 annually per dog, depending on the municipality. Some municipalities don’t charge dog taxes, such as Rotterdam.
6. Pollution tax (Milieuheffing):
- What is it? The fee is levied on households based on the amount of pollution they generate. It may be tied to waste production or water usage.
- Who pays it? This tax is for residents who contribute to local environmental management and pollution.
- Rate: Rates vary, but this tax is usually not as common and may be included in the waste collection fee in some municipalities.
Wage taxes and municipal taxes in the Netherlands
You also pay wage tax when your employed and registered in the Netherlands. This time of the year is also important for the wage tax returns that might be applicable for you. You can ask us to step in for this. If you want to, please send a mail to info.nl@anywr-group.com.
Municipal taxes are not subject to returns.
How to Pay Municipal Taxes:
- Municipal taxes are typically billed annually, but they can be paid in installments (e.g. monthly) to spread out the cost.
- The municipality will send a tax assessment (aanslag) indicating the amount due and payment deadlines.
- You can usually pay online (iDEAL), via bank transfer, or by setting up a direct debit.
Municipal taxes in the Netherlands help fund local services, so they are an important part of living in the Netherlands. Be sure to check with your local municipality (gemeente) for specific rates and exemptions that may apply to your situation.
