Tax Deduction (Aftrekpost)
A tax deduction (aftrekpost) is an amount you can subtract from your taxable income. By using deductions, you lower the income on which you pay tax, and thus pay less. Well-known deductions include <a href="/en/glossary/mortgage-interest-deduction">mortgage interest</a>, <a href="/en/glossary/healthcare-cost-deduction">healthcare costs</a>, <a href="/en/glossary/charitable-donation-deduction">donations</a>, <a href="/en/glossary/alimony">alimony</a>, and entrepreneur deductions such as the <a href="/en/glossary/self-employed-deduction">self-employed deduction</a>. The tax benefit of a deduction depends on your tax rate. At the base rate of 36.97%, every €1,000 in deductions saves you €370. At the top rate of 49.50%, the same deduction saves €495. Some deductions have a threshold or maximum – always check the current conditions.
Example
You have €5,000 in mortgage interest, €1,500 in healthcare costs above the threshold, and €1,200 in periodic donations. Together that's €7,700 in deductions. At a 36.97% tax rate, you save €2,847 in tax.
Why does this matter?
Deductions are the key to a lower tax bill. Many people miss deductions simply because they don't know about them. Find an overview of all possible deductions in our <a href="/en/glossary">tax glossary</a>.
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