Recalculation of capping limit after income change in Amsterdam
In the expensive Amsterdam rental market, your rent allowance capping limit changes due to job loss, promotion or flexible contracts. Learn how to request recalculation via the Tax Authorities and prevent recoveries, especially with average rents of €1,800 in neighborhoods like De Pijp or Oost.
When to recalculate in Amsterdam?
Income changes such as dismissal in hospitality, start of pension or extra income from part-time jobs in the city trigger a recalculation. The Tax Authorities adjust the capping limit based on your provisional assessment or definitive tax return. If income falls below the limit, your allowance increases retroactively; if it rises above the €25,000 limit for singles, repayment often follows. In Amsterdam, where 40% of tenants receive allowance, this is crucial due to high WOZ values.
You have 8 weeks after the change to report it. Example: Income drops from €30,000 to €23,000 due to job loss at an Amsterdam tech company? You may receive €120 extra per month for your rental property in Centrum or Zuidoost.
Legal basis
Article 19 Rent Allowance Act and General Tax Act, applicable to Amsterdam tenants. Recoveries are limited to 5 years, but local advice points such as the Amsterdam Legal Aid Office help with objections.
Practical steps for Amsterdammers
Log in to My Allowances of the Tax Authorities, enter the change and upload supporting documents such as payslips or UWV decisions. Contact the Amsterdam Wmo desk for rent advice or request deferral in case of payment problems. Use the allowance check tool for your postcode to simulate the impact.