New tax rules in 2024
With the start of 2024, we have faced some changes in the tax rules. For example, the tax rate in the first bracket has gone up slightly and the general tax credit is also slightly higher. These changes can affect your wallet. Therefore, it is important to look at them carefully. That way you won't encounter any surprises.
Change tax brackets
As of Jan. 1, the tax brackets and rates in box 1 have changed. Box 1 includes your income from work and home.
The new division:
Slice 1: taxable income up to €75,518, rate 36.97 percent
Step 2: taxable income from €75,518, rate 49.50 percent
Tax rates for pensioners
Taxbracket 1: taxable income up to €38,098, rate 19.07 percent*
Step 2: taxable income from €38,098 to €75,518, rate 36.97 percent
Step 3: taxable income from €75,518, rate 49.50 percent
* For people born before Jan. 1, 1946, the maximum taxable income is €40,021 in the first bracket.
General tax credit
The maximum general income tax credit goes up to €3,362 in 2024.
Up to an income of €24,812, you can use the maximum tax credit. After that income limit, the general tax credit becomes lower as your income increases. You will not receive a general tax credit if your income exceeds €75,518.
Labor Discount
"People with a job get employment tax credits. This year, the maximum employment tax credit increases to €5,532. The amount of the labor discount depends on income. At an income higher than € 39,957, the labor discount is accelerated."
Twan Peeters
Mortgage advisor at Alpina Roerdalen
Income-dependent combination credit
The income-dependent combination credit increases to a maximum of €2,950.
Deductions
In 2024, the deduction rate will be further reduced from an income of €75,518. The maximum deduction will then be 36.97 percent.
Box 2
The tax rate for income in Box 2 (income from substantial interest) will consist of two brackets starting in 2024.
Step 1: taxable income up to €67,000, rate 24.50 percent
Step 2: taxable income from €67,000, rate 33.00 percent
Adjustment of levies box 3
In Box 3, assets are divided into three categories: cash and bank balances, other assets and debts. The actual composition of the assets is leading. For each asset category, a separate fixed return applies (the estimate made by the tax authorities regarding the return you achieve).
The capital on which you do not have to pay tax remains €57,000 in 2024. For financial partners, the maximum capital is €114,000. You can find more information about box 3 on the site of the Tax Office.
