Is my AOW payment taxed?

Yes, AOW is taxable income (box 1). The SVB withholds payroll tax, but also settles the tax credits. In most cases you therefore pay little to no tax if you only receive AOW.

What tax rate applies to AOW recipients?

AOW recipients no longer pay AOW premiums, which means the rate in the first bracket (up to €38,883) is about 17.85%, instead of 35.75% for people below AOW age. Above that, the same rates apply: 37.56% and 49.50%.

Can I get tax back as an AOW recipient?

Yes. If you have high healthcare costs, have made donations, or if the elderly tax credit has not been fully settled by the SVB, you can get money back via an income tax return.

Do I have to file a tax return if I only receive AOW?

Not required if you don't receive a tax return letter. But filing a tax return can be beneficial if you have healthcare costs, donations or other deductions. We can quickly check this for you.

I receive both AOW and a pension. Will I have to pay extra?

Possibly yes. If both the SVB and your pension fund apply the full tax credit, too little tax has been withheld. You can resolve this by asking the pension fund not to apply the tax credit (doubly).

How much is the elderly tax credit for AOW recipients in 2026?

The elderly tax credit is €2,067 at an aggregate income up to €46,002. Above that, the credit is gradually phased out. Single people are additionally entitled to the single person elderly tax credit of €540.

AOW 2026 and tax: how much tax do you pay on AOW?

AOW and tax 2026 – how much tax do you pay on your AOW?

📅 Last updated: 31 October 2026 ⏱ Reading time: 6 minutes ✍ Stan van der Hoeven

Many AOW recipients are surprised when they hear that their AOW payment is taxed. At the same time, as an AOW recipient you are entitled to special tax credits that strongly reduce your tax burden – sometimes to zero. In this article we explain how the tax on AOW works, how much you pay and when you can get money back.

⚡ Quick answer

Your AOW state pension is taxed, but thanks to the elderly tax credit and the general tax credit many pensioners pay little or no tax. Deductions often mean money back, but only if you file a return.

Is AOW taxable?

Yes, state pension (AOW) is taxable income. The SVB (Sociale Verzekeringsbank) treats your AOW payment as wages from former employment. That means payroll tax is withheld before you receive your net AOW.

When calculating the payroll tax, the SVB already takes into account the elderly tax credit and the general tax credit. In most cases, you therefore pay little to no tax on your AOW. Especially if you have no other income sources.

Rule of thumb: if you only have AOW, you usually pay no income tax: the tax credits are higher than the tax. With a single-person AOW you only pay tax above an income of about €23,300 a year, with an AOW for partners above about €20,200. You do pay the health insurance contribution (Zvw). Calculate it with our AOW and pension calculator (in Dutch).

What tax rate applies to state pension (AOW) recipients?

AOW falls in box 1 (income from work and home). Because AOW recipients no longer pay AOW premiums, their tax rate is lower than that of working people:

Income (box 1)	Rate for AOW recipients	Rate for workers
Up to €38,883	approx. 17.85%	35.75%
€38,883 – €78,426	37.56%	37.56%
Above €78,426	49.50%	49.50%

* Indicative 2026 rates. The exact rate depends on your year of birth (before or after 1946).

Tax credits for AOW recipients

Although AOW is taxed, AOW recipients are entitled to credits that significantly reduce the tax:

General tax credit (algemene heffingskorting), at AOW age max. €1,556 in 2026, phased out above an income of €29,736
Elderly tax credit (ouderenkorting), €2,067 at incomes up to €46,002
Single person elderly tax credit (alleenstaande ouderenkorting). €540 extra if you receive the single-person AOW

The SVB already settles these credits in the monthly payroll tax. If you have multiple income sources (e.g. AOW + pension), the credit at one source may be set too high, and a back-payment can arise later.

When can you get tax back?

You can get money back if:

The elderly tax credit is not fully settled by the SVB or pension fund
You have had high healthcare costs (personal contributions, dentist, aids)
You have made donations to a recognised charity (ANBI)
You have an owner-occupied home with (remaining) mortgage interest
Too much payroll tax has been withheld on multiple income sources

When must you pay extra?

You may have to pay extra if:

You receive a supplementary pension or annuity in addition to AOW, and the full tax credit has been applied to both sources
You have box 3 wealth above the exemption (€59,357 single / €118,714 together)
You have an owner-occupied home and the imputed rental value (eigenwoningforfait) is higher than the mortgage interest

Tip: Do you receive both AOW and a supplementary pension? Ask your pension fund not to apply the tax credit if the SVB is already doing so. This way you prevent an unexpected back-payment.

We check your AOW tax return

It's easy to miss credits or to pay too much if you have multiple income sources. We come to your home, check your annual statements and make sure you don't pay more than necessary.

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