Payroll tax reduction (loonheffingskorting)

Your pension is subject to (income) tax. You can apply for payroll tax reduction (loonheffingskorting) to lighten your tax burden.

Log in with your DigiD and go to payroll tax reduction to check whether or not it currently applies to your pension. You can change this setting yourself.

You are allowed to apply tax reduction to one income only. Do you receive another income in addition to your pension, such as AOW? Make sure you only get tax reduction for one of them in order to avoid having to pay additional taxes later.

Your personal situation dictates to which income payroll tax reduction can be applied best. Use the tables below to make your choice. 

You have a partner

You are single

You can apply the payroll tax reduction to your state retirement pension or to your pension. The best choice for you depends on your personal situation. These tables help you make a choice. In the table, we assume that you only receive state retirement pension and pension from PME. If you make a choice based on the table, you will probably not get an additional tax assessment. Do you have any other income? Then ask the Tax Authorities what the best choice is for you. 

A safe choice: not applying payroll tax reduction
You can also decide not to apply payroll tax reduction to your pension, your state retirement pension or both. That means your monthly net income will be lower. The chance of getting an additional tax assessment is smaller. And you may even get some money back.

• Log in with your DigiD and go to payroll tax reduction.
• Check whether or not this tax reduction currently applies to your pension.
• Adjust your choice.

If you don't have DigiD, use the change payroll tax reduction form to adjust your choice.