Sharp increases in property taxes expected across Dutch municipalities

Nearly 20 percent of municipalities in the Netherlands are raising property taxes (OZB) by more than 10 percent this year, as local governments brace for a cut to the Municipal Fund. On average, homeowners will pay 6.2 percent more in property taxes compared to last year, with Renkum leading the increases at 41 percent. This is according to a nationwide survey by the Association of Homeowners (Vereniging Eigen Huis) on municipal living expenses across all 342 municipalities.

The trend of significant property tax increases comes as municipalities face mounting financial pressures, particularly with expected revenue shortfalls from the Municipal Fund starting in 2026. Local authorities unable to offset income losses through alternative taxes, such as parking fees or tourist taxes, are often left with no option but to raise the OZB to the maximum allowable limits. This situation places an increasing financial burden on homeowners to support social welfare tasks and local services. Additionally, the financial strain is expected to severely impact housing construction.

Vereniging Eigen Huis is urging the Dutch government to take action in the upcoming spring budget to prevent excessive property tax hikes and alleviate the financial problems facing municipalities.

This year's average property tax bill is 407 euros, reflecting a 6.2 percent increase compared to 2024. This marks a significant rise from earlier projections in December, which anticipated a 5.1 percent increase based on data from a third of the municipalities. Along with Renkum, municipalities like Loon op Zand (+39 percent) and Edam-Volendam (+35 percent) are seeing steep rises in their property taxes.

Municipalities with higher average property values typically face higher living costs, with Wassenaar (1,633 euros), Bloemendaal (1,631 euros), and Laren (1,597 euros) topping the list for the highest tax bills. At the lower end of the spectrum, Capelle aan den IJssel (733 euros), Rijssen-Holten (705 euros), and Ameland (660 euros) have the lowest.

In addition to property taxes, the total municipal living costs for homeowners, which include waste collection and sewerage charges, will average slightly over 1,000 euros this year — a 5.5 percent increase from last year's average of 950 euros.

The waste collection tax has increased by an average of 5.3 percent (17 euros) this year. In 61 municipalities, this tax has risen by more than 10 percent. The steepest hikes have been seen in Nederweert (+71 percent, 108 euros) and Bladel (+34 percent, 89 euros). Conversely, some municipalities such as Rheden and Oosterhout have reduced waste charges, with Westerveld reporting the largest decrease of 18 percent (56 euros).

Sewerage charges have also risen by an average of 4.3 percent (10 euros), with 40 municipalities raising fees by more than 10 percent. Valkenburg aan de Geul has seen the most significant increase, at +86 percent (158 euros), followed by Den Helder at +47.2 percent (65 euros). In contrast, Renkum has reduced its sewerage charge by 25 percent (110 euros).

A major concern for municipalities is the planned 2.4 billion euros cut to the Municipal Fund in 2026. According to projections, 75 percent of municipalities will face budget deficits, creating significant challenges in meeting their financial obligations. This "cliff year" has been identified as a key cause of upcoming shortfalls, as municipalities will not have enough funding to carry out their essential duties.

The Association of Homeowners, in collaboration with Marlyse Research, conducts a biannual survey on the development of municipal living costs. In December 2024, a sample survey was conducted among 113 municipalities, followed by a comprehensive survey of all 342 municipalities in February 2025.