Rent Allowance Calculation for Amsterdammers

Rent Allowance Calculation for Amsterdammers

The rent allowance calculation as determined by the Tax Authorities sets your monthly benefit. For Amsterdammers facing sky-high rents in neighborhoods like De Pijp or Oost, this allowance is essential, depending on rent, income, assets, age, and household composition. We outline the steps, with tips for local support via the Amsterdam Legal Aid Office.

What is rent allowance?

Rent allowance helps tenants of independent dwellings with low incomes cover excessive rent. Ideal for Amsterdam first-time renters, retirees, or welfare recipients. Paid monthly, with final settlement based on actual income. The scheme is part of social security benefits under the Rent Allowance Act (Wht). For 2024: rent limits of €900.07 (single) and €1,202.68 (cohabiting) – critical in Amsterdam's expensive market.

Legal basis for rent allowance calculation

The calculation is governed by the Rent Allowance Act (Wht). Key provisions:

• Article 2 Wht: Entitlement and conditions.
• Article 8 Wht: The calculation formula.
• Article 10 Wht: Own contribution based on income and assets.
• Article 26 Wht: Reference date for income (often two years prior).

The General Act on Income-Dependent Schemes (Awir) sets thresholds, updated annually via the Official Gazette. In Amsterdam, you can seek rent advice from the Municipality of Amsterdam.

Eligibility for rent allowance in Amsterdam

Meet these requirements:

• Renting an independent dwelling (own kitchen, toilet, shower).
• Basic rent below the rent price limit.
• At least 18 years old.
• Income below threshold (e.g., €25,506 for singles, 2024).
• Assets max. €37,395 (single) or €74,790 (couple) as of January 1 of reference year.
• Dutch nationality or residence permit.

Rent price limits 2024

Source: Tax Authorities 2024. Check toeslagen.nl for updates, or seek advice from the Amsterdam Legal Aid Office.

Calculating rent allowance step by step

Formula from Article 8 Wht:

1. Step 1: Eligible rent
   Min(basic rent, limit).
2. Step 2: Basic allowance
   Eligible rent minus own contribution.
3. Step 3: Allowance factor
   Basic × factor (100% at low income, tapering off).
4. Step 4: Assets adjustment
   Reduce by 3% per €1,000 above threshold.
5. Step 5: Round and pay
   Monthly, finalized annually.

Own contribution: €247.94 (2024) + 9.4% above €23,000 + partner contribution. Try the Rent Allowance Calculator.

Rent allowance examples for Amsterdam

Example 1: Young Amsterdam resident
Marie (22, Oost), rent €450, income €18,000, assets €10,000.
- Eligible rent: €450.
- Own contribution: €247.94.
- Basic: €202.06 × 100% = €202.
Allowance: approx. €202 p/m.

Example 2: Retired couple
Jan and Pietje (65+, Centrum), rent €1,000, income €30,000, assets €50,000.
- Eligible rent: €1,000.
- Own contribution: €247.94 + €657.
- Basic: €95.06 × 75% = €71.30 minus €12.30.
Allowance: approx. €59 p/m.

Rights and obligations

Rights:

• Provisional payment upon application.
• Refund for errors.
• Objection (6 weeks, Awb), appeal to the District Court of Amsterdam.

Obligations:

• Report changes (move, income) within 8 weeks.
• File tax return for settlement.
• Repay if exceeded.

See also Applying for benefits.

Tips for Amsterdammers

• Do a trial calculation first.
• Check service charges in your contract.
• Report changes promptly.
• Use income statement.
• For issues: free help via Amsterdam Legal Aid Office.
• More: Healthcare allowance Amsterdam.