The Dutch income averaging scheme, known as middeling, has ended, but you can still claim for earlier years in 2026. The final possible period is 2022, 2023 and 2024. If your income spiked in one of those years, perhaps because of a redundancy payment or a strong year in business, I can check whether a claim is still possible and which period gives the best result. The final three eligible years are not always the best choice.
When is an income averaging calculation worthwhile?
Income averaging compares tax on three separate annual incomes with tax on the average income for those years. It uses your taxable income from work and your main home, known as box 1. For a business owner, that is neither turnover nor necessarily the profit shown in the annual accounts.
I look particularly for a year in which some income fell into the highest tax bracket, alongside years with substantially lower income. Averaging can bring part of that peak income into a lower bracket. A large percentage rise in earnings matters less: going from very little income to an ordinary salary does not automatically produce a refund.
Tax credits are left out of the calculation. The scheme cannot recover an unused general tax credit or employment tax credit from an earlier year. That is one reason a period covering study and the start of a career may yield less than expected.
I compare the available income averaging periods, calculate the possible refund and check the deadline. If a claim is worthwhile and still possible, I prepare and submit it for you. We will agree the approach and fees before I start.
Contact me to discuss an income averaging claim.
Example: an income peak in 2023
Take taxable box 1 incomes of €30,000 in 2022, €120,000 in 2023 and €30,000 in 2024. The average is €60,000. The person is below Dutch state pension age and fully subject to Dutch income tax and national insurance contributions in all three years.
Income tax and national insurance contributions before tax credits total approximately €72,432 on the original incomes. Recalculating each year on €60,000 gives approximately €66,582, using each year’s own rates. The difference is €5,850. After the €545 threshold, the averaging refund is approximately €5,305.
That threshold applies to each claim. A calculated difference of €400 therefore produces no refund.
The choice of years can determine the result
A tax year can only be used once in an averaging claim. If 2022 was included in an earlier period, such as 2020 to 2022, it cannot be reused for 2022 to 2024. Nor can 2023 and 2024 then be combined with 2025: that period falls outside the scheme.
Before submitting a request, I compare the periods still available, such as 2021 to 2023 and 2022 to 2024. Previous claims and filing deadlines determine which combinations I can include.
Income averaging is a separate claim. It does not change the annual incomes already assessed, and Dutch income-related benefits are not recalculated as a result. Couples cannot pool their incomes for a single averaging calculation either.
There is no single deadline for everyone
If you have final assessments for all three years, the ordinary deadline is 36 months after the last of them becomes irrevocable. This usually happens when the six-week objection period expires. What matters is which assessment becomes final last, not necessarily which relates to the latest tax year.
If that happened on 1 December 2023, for example, the ordinary period runs to 1 December 2026. Another person’s deadline could be much later. The scheme having ended does not by itself mean that you are too late to claim.
If there is an objection, an additional assessment or a later loss-offset decision, I check the deadline separately. An additional assessment or loss offset can create a further two-month period.
Cases that need more than a basic calculation
Special contribution rates and calculation rules apply around Dutch state pension age. A negative taxable income is treated as zero for averaging, while loss relief can separately alter the assessments. If you moved to the Netherlands or worked across borders during the period, I check eligibility for each of the three years.
A year without an assessment does not necessarily have to be excluded. I check which decision or return is needed and when the claim period starts.
I can compare the periods and handle the claim
To find out whether a refund is still possible, contact me through my tax calculation service. Briefly explain why your income changed and whether you have claimed averaging before. I discuss the work and fees in advance, check the available periods and handle the request once you approve. You do not need to work through the calculation or complete the claim form yourself.