After months of formation upsets, coffee in the House of Representatives and media speculation, the high word is out: the coalition agreement of D66, VVD and CDA (the Jetten cabinet) is a fact. For homeowners and prospective buyers, the big question was, of course, “Will they keep their hands off my mortgage interest deduction?”
The short answer? Yes. For now, we can breathe a sigh of relief. But as always with tax authorities, the devil is in the details.
The Mortgage Interest Deduction: The Holy Houses remain standing
Despite D66 and CDA's election promises to further phase out the mortgage interest deduction (HRA), the VVD has stuck to its guns. The ‘Getting Started’ agreement stipulates that the tax treatment of owner-occupied homes will be unchanged remains.
This means that fears of a quick abolition of this tax perk can be put on ice for now. The coalition opts for “calm on the housing market”. At a time when an average terraced house still costs a fortune, this fiscal stability is a welcome gift for many households.
The hard numbers for 2026
Although no new cuts have been agreed, the existing rules will of course continue. Here's what to expect in 2026:
- The deduction rate: You can deduct the interest in 2026 at a maximum rate of 37,56%. That is a fraction higher than in 2025 (when it was 37.48%), which is simply because of an automatic adjustment in the first tax bracket.
- The 30-year limit: Pay attention if you have lived in your home for a long time. For those who already had a mortgage before 2001, the 2031 end date is getting closer and closer. After 30 years, the deduction stops inexorably.
The ‘Snags’: Hillen Act and the Home Ownership Tax Credit
No political deal without a little bitter pill. While the Mortgage Interest Deduction will be spared, there will be tinkering elsewhere:
- Accelerated phase-out of Hillen Act: Have you paid off your mortgage (almost) in full? Then you are less lucky. The ‘Hillen Act’, which ensured that you did not pay tax on your owner-occupied home if you had no debt, is being phased out. In 2026, you may only 71,82% of the owner-occupied house lump sum against the interest. The goal is that you will eventually (by 2041) pay tax on the full WOZ value, mortgage or not.
- WOZ value: With the continued tightness in the market, property values continue to rise. As a result, your owner-occupied housing benefit (the tax addition to your housing benefit) also rises. So even if the HRA stays the same, your net benefit may shrink slightly.
Good news for start-ups?
The government is fully committed to building 100,000 houses a year (yes, we know that number by now) and is allocating billions for new housing locations. For first-time buyers, there is a small boost: the transfer tax exemption remains. In 2026, you can get up to a home value of € 555.000 buy without paying that pesky 2% tax, provided you are between 18 and 35 years old.
The NHG limit increased to € 470.000 (and even close to 5 tonnes if you invest in sustainability). This offers just that little bit of extra security with the bank.
Conclusion: Tax authorities are not celebrating, but they are not dealing blows either
For homeowners, the new coalition agreement is mainly a document of “preservation”. No radical system overhaul, but a consolidation of the current course. The mortgage interest deduction remains the trusted foundation of the Dutch purchase market, even if inflation and the phasing-out of the Hillen Act nibble at the edges.