Property tax

Property Tax (Onroerendezaakbelasting or OZB) is the municipal tax you must pay for owning a property.

Property tax (OZB) is paid annually by homeowners to the municipality. To determine the OZB, the value of the property is considered. This value is called the WOZ (Waardering Onroerende Zaken) and is determined according to the rules of the Property Valuation Act. The WOZ is indicated on the tax assessment in the assessment notice.

If you are the owner or user of a property on January 1st, you are liable for tax for the entire year. If you change residences during the year, this does not affect the tax for that year. It is customary for the notary, during the transfer of a property, to reconcile the property tax (OZB) for the owners. The new owner pays the OZB for the part of the year that they own the property.

What is OZB and who pays property tax?

OZB stands, as mentioned, for property tax. It is a tax that everyone who owns a house must pay to the municipality. Even if you do not use the property as a residence, you still have to pay property tax. As a tenant, you do not have to pay property tax because you are not the owner of the property. People also often use terms like real estate tax or OZB tax, but the latter term is a bit redundant. The word "tax" is already included in the letter B of OZB.

Property tax rate

Due to the reassessment of the WOZ, there is an increase in value compared to the old rate. As a result, property tax will also increase. To compensate for this increase, some municipalities have lowered property tax. The municipality determines the WOZ value every year. The OZB value and the corresponding OZB assessment can therefore differ from year to year. You cannot object to the OZB rate levied by the municipality. However, you can object to the valuation of your property (the WOZ).

Calculating property tax

If you want to know what you have to pay for property tax this year and wonder, what is my property tax for 2024? With the help of the example below, you can easily calculate how high the property tax assessment will be for you this year. You need the percentages of your municipality and, of course, the WOZ value of your property.

The amount of the property tax assessment is a percentage of the WOZ value set by the municipal council. Suppose the percentages in your municipality are determined as follows:

Property tax (OZB)Rate
Owner residential property0,1280%
Owner non-residential property0,3186%
User non-residential property0,2529%

The difference in property tax percentage is related to your specific situation. If you own the property and it is occupied, the municipality applies the 'owner-occupied homes' rate. If it is a non-residential property (such as a shop space, office, factory, or other business property), you automatically fall into a higher rate. Furthermore, a distinction is made between the owner and the user (or the tenant of the property).

How much do you pay for property tax in your case? For example, if the WOZ value of your own home is €300,000, according to these municipal rates, you pay the following owner's share of property tax:

(300,000 / 100) x 0.1280 = €384 per year.

Why does the municipality levy property tax (OZB)?

The municipality levies taxes on real estate to finance part of the tasks of municipalities. Property tax (OZB) can be levied based on Article 220 of the Municipalities Act. The OZB forms the largest 'own' source of income for municipalities and accounts for an average of eight percent of total municipal income.