Deemed Rental Value (Eigenwoningforfait)
The eigenwoningforfait (deemed rental value) is an amount that homeowners must add to their taxable income in box 1. The idea behind it is that homeowners benefit from not paying rent – the tax authorities count a fictional income for this. The eigenwoningforfait is calculated as a percentage of your home's WOZ value. In 2025, this is 0.35% for homes with a WOZ value up to €1,310,000. Above that, a higher percentage applies. If you have little or no mortgage interest deduction, the so-called 'Hillen deduction' can offset part of the forfait – but this is being phased out gradually.
Example
Your home has a WOZ value of €350,000. The eigenwoningforfait is 0.35% × €350,000 = €1,225. This amount is added to your box 1 income. At a tax rate of 36.97%, this effectively costs you €453 per year.
Why does this matter?
As a homeowner, you cannot avoid the eigenwoningforfait. It increases your taxable income, but in practice is usually more than offset by the mortgage interest deduction. Always check if your WOZ value is correct – a WOZ value that's too high means unnecessarily more tax.