The mortgage interest deduction (hypotheekrenteaftrek) has once again become a topic of debate in the Dutch cabinet. A motion to reverse the planned increase in the tax relief for homeowners has received a majority in the House of Representatives.
According to reports from Dutch media on May 13, 2026, the motion, submitted by opposition parties, calls on the government to scrap the scheduled rise in the mortgage interest deduction rate. The current rate is set to increase from 36.97% to 37.04% in 2027, but the motion argues this would disproportionately benefit higher-income households.
The coalition government, led by Prime Minister Dick Schoof, has not yet taken a formal position on the motion. However, the debate highlights ongoing tensions within the cabinet over housing policy and fiscal reforms. The mortgage interest deduction has been gradually reduced over the past decade as part of efforts to make the housing market more affordable.
If the motion is adopted, it would mark a reversal of the planned increase, saving the government an estimated €200 million annually. Critics argue that the deduction primarily benefits wealthier homeowners and does little to address the housing shortage. Proponents, however, say it is essential for supporting middle-class families with mortgages.
