16 July 2023 at 05:10
The WOZ value of owner-occupied homes continues to rise, even now that the housing market has cooled down. Many are not happy with that, because it means you pay higher taxes. But there are also advantages to a high WOZ value.
The average WOZ value of Dutch homes has risen by almost 17 percent to 369,000 euros. That is a record, as it turned out this week. The new WOZ value is the value on the reference date of January 1, 2022, even if you received a message about this at the beginning of 2023. At the beginning of 2022, already a year and a half ago, house prices were still rising. That is why the WOZ value has not decreased.
Many people would like to have their WOZ value lower. That is why this year 600,000 people objected to their WOZ value. Almost three times as many as in previous years. That could be because people feel the contrast: their house prices have fallen in the past year, but their WOZ value has risen. One third of the objections led to a lower WOZ value in previous years. So they pay less tax.
How is the WOZ value determined?
You will receive the WOZ decision in which the new value of your home is stated from the municipality. This determines the value based on sales prices of houses in the area and also takes into account surface area, volume, garden, residential area, and so on. Not everyone agrees with that comparison. Because, for example, the neighbour’s house has an extension or has just been refurbished and yours does not.
Thanks to a lower WOZ value, you can easily save 150 euros
The annual local taxes are a percentage of the WOZ value. This concerns the waste levy, sewage levy, property tax (OZB) and the water board tax. You therefore pay more tax with a higher WOZ value.
A higher WOZ value is also less favorable for income tax purposes. Your notional rental value (also a percentage of your WOZ value) is added to your income from work. The idea is that you pay taxes because you benefit from having a home.
How much difference does such a higher WOZ value make? Suppose, for example, that you receive a WOZ value of 400,000 euros, while previously it was 350,000 euros. Then, depending on the tax rates in your municipality and water board and the level of your tax rate for your income tax, that saves about 150 euros to 200 euros. If you get your WOZ value down due to an objection, this can make a difference in taxes.
With inheritance, the WOZ value really starts to count
A high WOZ value can cost you even more money if you inherit a home. Inheritance tax is also calculated using the WOZ value. When inheriting, part of the home value is exempt from tax and you pay a percentage of 10 to 40 percent tax on the rest.
How high the percentage depends on your family relationship and the amount of the WOZ value. The fact that the WOZ value increased by 16 percent last year means that you will soon have to pay thousands of euros in extra inheritance tax.
You can no longer object. It is possible up to six weeks after you received the WOZ value from your municipality. So next year there is another chance.
Just happy with a higher WOZ value
You can also be happy about a higher WOZ value. In the past, objections have sometimes been raised against a too low WOZ value.
A high WOZ value has two advantages. When you put your home up for sale, a high value can entice buyers to pay a higher price. They can see how the WOZ value of your house has developed in recent years via the website of the WOZ Waardeloket.
You can also arrange a more favorable mortgage interest with a high WOZ value. Many banks determine their interest rates on how high your mortgage is in relation to your home value. A higher WOZ value ensures that you have a relatively smaller mortgage. And therefore may have to pay less interest. However, banks may require an appraisal to lower interest rates.