Dutch room rental tax exemption 2026: how does the €6,633 threshold work?

The room rental tax exemption is what makes hospita rental fiscally attractive in the Netherlands. A tax-free slice of income, indexed annually, that only applies if you rent out a room in your own home. For 2026 the threshold is €6,633. Sounds simple, but there are catches.

In this article we explain exactly how the exemption works: what the conditions are, what happens if you go just over, how it interacts with your mortgage interest deduction, and how three common rent levels (€400, €550 and €700 per month) play out for tax purposes. By the end you will know whether you need to adjust your rent to stay tax-free.

A note on terminology: "hospita" is a Dutch term for a homeowner who rents out a room in their own house while living there themselves. The exemption discussed here applies specifically to that situation.

What exactly is the room rental tax exemption?

The room rental tax exemption is a fiscal exemption, set out in Article 3.114 of the Dutch Income Tax Act 2001. The gist: if you rent out a room in your own home to a tenant whom you have selected and you meet a number of conditions, then the rental income does not count as income for income tax purposes.

The amount is indexed annually. For 2026 the figure is €6,633 (always verify this number on rijksoverheid.nl before submitting your final return, the Dutch Tax and Customs Administration publishes the official amount each autumn). For reference: in 2024 it was €5,998, in 2025 €6,327. The indexation roughly follows inflation and rent developments.

What is special about this scheme is not only that the rent is tax-free, you also keep your full mortgage interest deduction. With other forms of rental (for example, the entire home to a third party) you often lose part of your deduction because the "rented-out" share shifts to box 3. With hospita rental, that doesn't happen. The whole property stays in box 1, you keep 100% mortgage interest deduction, and the rent you receive is essentially free money.

Which conditions do you need to meet?

The Tax Administration sets four hard requirements for the room rental tax exemption. Miss one and the exemption lapses, meaning your entire rental income becomes taxed.

Condition 1: It is your own home where you have your main residence

The home must be your own home in the box-1 sense. That means: you are registered as owner or usufructuary, you live there yourself, you have your main residence there. A holiday home doesn't qualify. Nor does a second home where you don't live yourself.

Do you have a rented home and want to sublet a room? Then you can still fall under the hospita arrangement for trial-period protection, but the room rental tax exemption does not work, that one is tied to homeownership. For tenants the most important fiscal point is: you don't declare rental income up to the moment it has become your main income, and even then it is complex. In that case ask a tax adviser or the Tax Administration itself for confirmation.

Condition 2: The tenant is registered at the address

Your tenant must be registered in the Dutch Personal Records Database (BRP) at your address. That isn't just a formality; it is the burden of proof that this really is hospita rental and not short stay or disguised remote rental.

Therefore register your tenant directly with the municipality, within five working days of the move-in date. You can help your tenant with this, often a BRP excerpt from yours and a copy of the rental contract is enough. Also read our article on BRP registration and why it matters.

Condition 3: The total rent stays below the annual threshold

When calculating, you add up all the fees you receive from the tenant for the room:

• Bare rent
• Compensation for utilities (gas, water, electricity)
• Compensation for internet
• Compensation for cleaning of common areas
• Compensation for furniture if the room is furnished

Are you giving your tenant a living room and a kitchen included for one all-in amount of €600 per month? Then the calculation is simple: €600 × 12 = €7,200 = above the threshold.

Are you separately charging bare rent of €400 plus €100 for utilities? Then that is €500 × 12 = €6,000. Below the threshold, but tight. One unexpected utility contribution and you slip over. Always calculate with a buffer.

Condition 4: It is not short-term rental (short stay)

The exemption is not intended for Airbnb-like situations. Renting out the same room to five different people for two months each in a year? That is short stay and falls outside the scheme. The Tax Administration does not apply a hard minimum duration, but the rule of thumb is: the tenant is registered and lives there for at least a few months continuously.

For permanent room rental to the same person (the typical hospita situation) this is no issue. For shifting tenants every few weeks it is.

What happens if you go above €6,633?

This is where it gets painful: one euro above the threshold and the entire rental income becomes taxed. It is not a gradual phase-out; it is a hard kink. If you reach €6,700 in a year, not only that €67 is taxed, but the entire €6,700.

How is it taxed? In box 1 as income from the owner-occupied home. The rent falls under the same rate as your employment income. For most people that is the bracket rate of 36.97% (2026, first bracket) or 49.5% (second bracket for higher incomes). A rent of €7,200 can easily cost €2,500 in tax, while just below it you pay zero.

Concretely:

• Renting for €550 per month → €6,600 per year → below the threshold → tax-free.
• Renting for €560 per month → €6,720 per year → above the threshold → all €6,720 taxed.

The difference of €120 in annual income leaves you about €2,000 less net because of the tax. It is one of the rare examples where calculating less means earning more. Many hospitas tune their rent precisely to the threshold and don't ask for a separate utility contribution, that is then included.

Three concrete worked examples for 2026

Let's run three common scenarios. We assume the 2026 bracket rate (36.97% in the first bracket), an average homeowner.

Scenario 1: €400 per month, €4,800 per year

• Gross rent: €4,800
• Below the threshold? Yes, comfortably below.
• Tax: €0
• Net rent: €4,800
• Mortgage interest deduction: Fully retained.

This is the comfortable zone. You have a buffer for unexpected fees (for example, a one-off contribution towards a new boiler) without falling out of the exemption. For a 10 to 14 m² room in a medium-sized Dutch city this is a common price.

Scenario 2: €550 per month, €6,600 per year

• Gross rent: €6,600
• Below the threshold? Just, €33 below.
• Tax: €0
• Net rent: €6,600
• Mortgage interest deduction: Fully retained.

This is the optimisation zone. You are as close to the threshold as possible without going over. Beware: if you ask no separate utility fee, you can do this. But charging extra for utilities? Then you have to add that to the €6,600 and you'll likely cross over. Many hospitas in this scenario rent all-in: one amount per month, utilities included, no settlement.

Scenario 3: €700 per month, €8,400 per year

• Gross rent: €8,400
• Below the threshold? No, €1,767 above.
• Tax (first bracket 36.97%): €3,105
• Net rent after tax: €5,295
• Mortgage interest deduction: Still retained, since the entire home stays in box 1.

This is where the pain comes in. If you rent for €700 instead of €550, your gross annual income is €1,800 higher, but net you keep less (€5,295 versus €6,600). In other words: by asking €1,800 more in rent, you lose €1,305 net. That seems improbable, but it is a direct result of the all-or-nothing kink.

In higher tax brackets (for example with above-average income, the 49.5% bracket) the pain gets worse. There you pay €4,158 in tax on €8,400, and you keep €4,242 net, meaning even €2,358 less than at €550 per month.

The moral: around the €6,633 threshold you lose money by asking more. Only from about €920 per month (€11,040 per year) do you compensate the loss in the first bracket. In the second bracket you have to go to nearly €1,100 per month to net the same as at €550.

How does the exemption interact with your mortgage interest deduction?

This may be the most important fiscal benefit of the hospita arrangement: your mortgage interest deduction stays 100% intact. The whole home, including the rented-out room, stays in box 1 as your owner-occupied home. There is no split between "owner-occupied part" and "rented-out part".

Compare that to other forms of rental:

• If you rent out your entire home temporarily (for example because you're abroad for a year), the home shifts to box 3 or falls under the temporary-rental rule with a 70% addition.
• If you rent out a second home, that is fully in box 3.
• If you rent out a room outside the hospita arrangement (for example as short stay without BRP registration), you have to declare the rent as other income and possibly shift part of the home to box 3.

With proper hospita rental: none of that. You deduct your mortgage interest fully, you pay the imputed-income tax (eigenwoningforfait) over the WOZ value, and your rental income is either tax-free (below the threshold) or taxed at your IB rate (above the threshold), but without the structure of your owner-occupied home changing.

A frequently asked follow-up question: "does this also apply to my business home or a house in the name of a holding company?" No. The scheme is exclusive to natural persons living in their own home. A home in a B.V. (private limited company) falls outside it.

What do you do at filing time?

Here is the beautiful part: if you stay below the threshold, you don't have to do anything. No separate entry on your income tax return, no form, no specification. The rent is simply untaxed and falls outside the return.

That doesn't release you from administration. Keep:

• The rental contract with the hospita clause.
• Proof of the tenant's BRP registration.
• An overview of received rent payments (bank statements suffice).
• Any separate fees for utilities or furniture.

If the Tax Administration ever asks questions, which rarely happens, but can, you must be able to demonstrate within five minutes that you have met all the conditions and stayed below the threshold. A simple folder with these documents on your laptop is enough.

Going above the threshold? Then you must declare the full rent under "income from making available" or "other income from owner-occupied home", depending on the version of the return. For that, read our extensive article on hospita rental income tax filing, it walks step by step through how to fill it in.

Frequently asked questions

What if I have two tenants in my house, does the exemption count double?

No, the €6,633 is a total amount for all hospita rental in your house. If you rent out two rooms at €350 per month each (€8,400 total), you are above the threshold and everything is taxed. The Tax Administration adds up all rental income, regardless of the number of tenants.

Can my friend or family member be a hospita tenant?

Yes, a family member or friend may be a tenant, but watch out: the rent must be commercial (so market-conform or at least not a sham construction). If your brother pays €100 per month for a room that would normally fetch €500 at market rates, the Tax Administration may see that as a disguised gift. Stick to a reasonable amount (say 70-80% of market rate).

Does the room rental tax exemption also work with Airbnb?

No. Airbnb is in principle short stay, and the exemption requires the tenant to be registered in the BRP. For permanent rental, Airbnb is usually not the right route. For incidental Airbnb rental a different scheme applies: 70% of the rent is then taxed in box 1.

What if I go above the threshold during the year, can I temporarily lower the rent?

In theory yes, but the Tax Administration looks at the total annual income. If in November you suddenly halve the rent to stay below the threshold, that can be flagged as improper use, especially if you raise the rent again in January. It is better to set your annual rent in advance so you stay structurally below the threshold.

Should I automatically index the threshold each year in my contract?

Sensible. Include a clause in your contract that the rent moves annually with the room rental tax exemption, or at least that you evaluate as of 1 January. That way you benefit from the annual increase (€6,327 → €6,633 = +€306 in 2026 versus 2025) without having to sign new contracts.

List your hospita room calmly on Huismaatje

Looking to rent out your room as a hospita without Kamernet pricing or aggressive invitations? On Huismaatje you list your room for free, plan a viewing night with time slots and pick your housemate at your own pace. List your room →