(WEALTHY) INDIVIDUALS
Adjustments for box 3 (saving and investing)
In order to reduce the tax burden on smaller assets, it is proposed to increase the tax-free assets in Box 3 from € 30,846 to € 50,000 (for partners together from € 61,692 to € 100,000). The brackets are also redefined, with the 2nd bracket starting at a capacity of € 100,000 and the 3rd at € 1,000,000. To partially cover this package, the tax rate in box 3 is increased from 30% to 31%.
Because the taxable income in box 3 decreases for everyone, this has a downward effect on the collective income. In order to prevent a greater claim to a (higher) surcharge, it is proposed to base the capital test on the “rendementsgrondslag” in box 3.
Income tax rates 2021
Taxpayers who have not yet reached the state pension age at the beginning of 2021 are expected to have to deal with the following tax brackets in 2021.
| Box 1-rate 2021 | Taxable income above (€) | But not more than (€) | Rate 2021 (%) |
| First bracket | – | 68.507 | 37,10% |
| Second bracket | 68.507 | – | 49,50% |
These percentages include national insurance contributions.
Modified tax credits
This only includes the changes in tax credits as stated in the Explanatory Memorandum to the Tax Plan 2021. These relate to taxpayers who are younger than the state pension age. Lower limits apply to those entitled to state pension.
| Tax credits | 2020 (€) | 2021 (€) |
| General tax credit maximum | 2.711 | 2.837 |
| Labour tax credit maximum | 3.819 | 4.205 |
| Income-related combination discount maximum | 2.881 | 2.815 |
| Young disabled persons discount maximum | 749 | 761 |
Modified elderly discount
The older people’s discount for AOW pensioners will be increased additionally. The single old-age pension only undergoes an inflation correction.
| Tax credits | 2020 (€) | 2021 (€) |
| Elderly discount maximum | 1.622 | 1.703 |
| Single elderly discount | 436 | 443 |
Proportionality of childcare allowance
If the costs of childcare have only been paid in part by the parent, the right to an allowance will henceforth be determined in proportion to the amount of costs paid on time. The full amount of the supplement will therefore no longer be reclaimed. This is a legal record of the decisions of the Council of State since October 2019. The Tax and Customs Administration/Surcharges will also be given the power to moderate the recovery of childcare benefit in special circumstances. Furthermore, there will be more room for interested parties to express their views when adopting a final decision. There will be more customization.
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