Taxing your money in 2024: what you need to know about Box 3

If you save, invest or own a second home, for example, you will probably have to pay taxes on your money in 2024. This is called the box 3 tax. Want to know how this works, what will change in 2024 and what this could mean for you? Then read the following blog.

What is Box 3 tax?

Box 3 tax is a type of tax you have to pay on the money you have. It doesn't matter if it's in the bank, in investments or in a second home. This is called assets and you pay tax on your assets.

What will change in 2024?

What do you have to pay on your savings, investments, and a second (vacation) home? And what do you actually have to declare in box 3? The tax rules have changed considerably.

Starting in 2027, the government wants to tax you on the gains you actually made from your assets. Until then, the Box 3 bridging law applies. In doing so, the Tax Office assumes imaginary returns, also called flat rate returns. For example, if you save, they think you make a profit of about 1.03%. If you invest, they think you make about 6.04% profit. On this, you then have to pay 36% tax. That's 4% more than in 2023.

What if I am in debt?

If you also have debts, you may deduct part of those debts at a rate of 2.47%. But that's not all. There is also a threshold amount for debt. That means you may not use the entire amount of the debt when calculating. And if you have savings under a certain amount, you don't have to pay any tax at all.

How much savings can I have without paying taxes?

This is an important question. In 2024, you are allowed to have up to €57,000 in savings without paying tax. If you have a tax partner, this amount is €114,000. If you save more than this amount, you will have to pay tax on the additional amount.

Are these the final percentages?

No: only the stated rate of 6.04% for investments and other things you have money in is already certain. The percentages for the money you have in the bank and debts are not quite certain yet. Only at the beginning of 2025 will the IRS decide on those percentages and then calculate that into your final tax assessment.

Conclusion: be well informed

Tax rules can be complicated, especially when it comes to your money. It's important to stay abreast of the changes and, if in doubt, seek advice from a tax advisor. This will ensure that you are making the right decisions for your financial future.