Elderly Tax Credit (Ouderenkorting)
The elderly tax credit (ouderenkorting) is an additional <a href="/en/glossary/tax-credit">tax credit</a> for people who have reached the state pension age. In 2025, the maximum elderly tax credit is €1,735. Above a combined income of approximately €44,770, the credit is reduced by 15% per additional euro of income until it reaches zero. The elderly tax credit is automatically applied in your tax return. You don't need to do anything special. The credit is intended to support older people with a lower income. In addition to the elderly tax credit, retirees may also be entitled to the single elderly person's credit if they live alone and receive single-person AOW.
Example
You are 68 years old and receive AOW plus a small pension. Your combined income is €30,000. You are entitled to the full elderly tax credit of €1,735, which reduces your tax by that amount.
Why does this matter?
As a retiree, the elderly tax credit is a welcome tax reduction. Always check that this credit has been correctly applied in your return. With a lower income, the elderly tax credit combined with other tax credits can mean you pay hardly any tax.
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