Paying tax in Box 3: how does wealth tax work?

You’re submitting a tax return in line with the Dutch Income Tax Act. This Act states that you must pay tax on income from assets based on assumed return percentages that are the same for everyone. You must enter your various assets on the tax return in line with these statutory provisions. Read on to find out how this works.

If, in line with the statutory provisions, the amount of tax you owe is higher than the amount you owe according to your actual return, you must pay tax on this (lower) actual return. Find out how this works under the heading ‘Rebuttal scheme: tax according to actual return’. 

Tax in Box 3 is calculated according to the value of your assets on 1 January of the tax year in question. This is known as the reference date. The tax you owe for that year is calculated on your assets on the reference date.

You declare these assets on your tax return. The Dutch Tax Administration decides on an assumed rate of return (also known as fictitious return), which counts as your income from assets for the sake of your tax return. You pay 36% income tax on this income.

If your actual return is lower than the assumed return, the Tax and Customs Administration is not allowed to tax your return according to the assumed rate, because that would mean you would pay too much tax on your return.

Common possessions in Box 3.

The most common Box 3 possessions are savings, investments (such as shares, bonds and investment funds) and real estate (such as investment property and holiday homes. Cash or cryptocurrencies also count, as does money that you’ve lent to someone (receivables), unless these are receivables from your own company.

Major possessions that don’t come under Box 3 are the home that you live in and your business. These come under Box 1. Shares in your own company don’t come under Box 3 either. Income from your own company is taxed in Box 2. 

Common debts in Box 3 

Common debts in Box 3 include loans for a car, for example, a second home or investment property. Most student loan debts also count, or a current account debt to your own company. 

In 2025, an amount of €3,800 (or €7,600 jointly for fiscal partners) from the total amount of debts in Box 3 is not tax-deductible. This is known as the debt threshold. You may deduct the amount of the remaining debts from your assets in Box 3.  The mortgage on your main residence is an important debt for many households. In the same way as the house itself, the mortgage debt usually comes under Box 1, not Box 3. Find out more about the rules governing the home acquisition debt on the site of the Dutch Tax Administration.

The assets in Box 3 are divided into 3 categories: bank balances (savings, deposits, cash), other possessions (all possessions that aren’t covered by bank balances) and debts. Every category has its own assumed percentage:

In 2025, you’ll ultimately pay 36% tax on your assumed income in Box 3, your income from savings and investments.

Calculate how much tax you’ll owe in Box 3 yourself by following these 4 steps.

Step 1

Calculate the assumed rate of return for the various categories of your assets. For 2025, this is: 1.44% for bank balances + 5.88% for other possessions − 2.62% for debts. If your return is negative, the Tax Administration considers this to be 0% return.

Step 2

Calculate the effective return percentage (ERP). You do this by dividing your return by your total assets in Box 3.

Step 3

Calculate your taxable income from savings and investments like this:

• Subtract the tax-free allowance from your assets in Box 3.
• Multiply this amount by your ERP. The result is your income from savings and investments.

Step 4

Finally: multiply your income from savings and investments (step 3) by the tax rate of 36%.

Sample calculation: assumed return:

• Savings: €100,000
• Investments: €500,000
• Debts: €153,800
• Tax-free allowance: €57,684

The (provisional) percentages and returns in this case will be:

You can now calculate your tax in Box 3 like this:

• The effective return percentage (ERP) is: €26,910 / €450,000 = 5.98% (rounded off).
• Income from savings and investments is: 5.98% * (€450,000 - €57,684) = €23,460.
• The tax in Box 3 is 36% * €23,460 = €8,445.

If your actual return for the past year was less than this, and you owe less tax than was calculated in the assumed return, the Dutch Rebuttal Act states that you will pay tax on the actual return.

You can then declare the actual return on your tax return. A number of rules apply when determining the actual return received:

• The option of paying tax on your actual returns applies to your entire assets; you can’t opt for assumed return on one category, and actual return on another.
• Actual return is calculated including unrealised gains in the value of your assets.
• You may deduct any interest you have paid when calculating the actual return.
• You may not deduct fees when calculating the actual realised return.
• You may add investments to the value of the asset categories; they are not part of your return. Find out more about Box 3 compensation and developments

An online practice form from the Tax Administration is available to help you calculate your actual return and compare this actual return with the assumed return. The practice form is a simulation of the official ‘Submit Actual Return’ form.

Here’s how the practice form works:

• Go to the field ‘Voor formulier’ (For form). Select a tax year and ‘Opgaaf werkelijk rendement (IB-OWR)’ (Submit Actual Return).
• Various situations will appear in the grey field. Select the situation that applies to you. 
• This will open a new window with the practice form. Enter your details.
• Once you’ve finished, you’ll see your assumed return and your actual return for your chosen year under the tab marked ‘Overzicht’ (Overview). You’ll also see whether you need to complete and submit an official OWR (Submit Actual Return) form. Save the practice form as a PDF or print it. If the information is correct, you can use it to complete the official OWR form.