The WOZ-value is used for the levy of taxes by municipalities, polderboards and the National Tax Administration.
The National Tax Administration uses the WOZ value to levy taxes, such as income tax (owner-occupied home in box 1 of the income tax and second home or houses rented out in box 3 of income tax), and inheritance tax. In addition, the WOZ object (the taxable property whose WOZ value is assessed) is used for the energy tax.
The municipalities and polderboards each have a form of property tax that is directly based on the WOZ value.
This page explains the use of the WOZ value and in which taxes the WOZ value plays a role.
WOZ value and municipal taxes
Municipalities use the WOZ value to levy property taxes, in the Netherlands known as OZB. There are three types of OZB:
the OZB for the owner of a residential property;
the OZB for the owner of a non-residential property;
the OZB for the user of a a non-residential property.
The WOZ value can also be used for other municipal taxes such as the sewage water charges.
WOZ value and taxes polderboards
The WOZ value is used by polderboards for their property tax, known as "watersysteemheffing". A (home) owner pays this tax. This tax also applies to the owner of other built objects. The water system levy for built properties is based on the WOZ value of the house.
WOZ value and national taxes
The National Tax Administration uses the WOZ value in various taxes for residents:
In box 1 of the income tax, the WOZ value of the owner-occupied home is used to estimate the imputed income because of owning your own house (eigenwoningforfait);
In box 3 of the income tax, the WOZ value is used for a second (vacation) home or for rental properties;
When donating or inheriting a home, the WOZ value is used for gift and inheritance tax.
In addition, for energy tax and tap water tax, the WOZ value is not important, but the WOZ object is used. The amount of tax payable depends on energy use or water use "within a WOZ property."
Furthermore, the National Tax Administration also levy taxes for businesses based on the WOZ value such as:
Assessing the additional profit because of private use of a home
Limitation of depreciation on buildings when determining taxable profit
Other uses of the WOZ value
The WOZ value is not only used for levying taxes. The WOZ value is increasingly used by other organizations and for other purposes. For example, the Central Bureau of Statistics uses the WOZ values and the WOZ value affects the system for assessing the maximum rent price for social housing (woningwaarderingsstelsel).
