The ins and outs of the box 3 levy

In this blog post, we discuss how the box 3 tax works, the rates and exemptions for 2024, and provide tips for optimizing your tax return.

What is the box 3 tax?

Box 3 tax is a tax you pay on your assets. These assets include all your possessions, such as savings, investments and real estate, minus your debts. The levy is designed to demand a fair contribution from people who have assets, regardless of whether they actually make a return on them.

Fictitious return

The IRS uses a notional return on your assets. This return is a percentage of the value of your assets, which you must report in Box 3. You then pay tax on this notional return.

Levy-free assets

In 2024, there is a tax-free capital of €57,000 per person. This means that you pay no tax on the first €57,000 of your assets. For tax partners, the levy-free capital is €114,000.

Rates

The rate for the box 3 tax in 2024 is 36%. This rate applies to assets above the tax-free capital.

Tips to optimize your tax return

  • Take advantage of exemptions: In addition to the tax-free estate, there are a number of other exemptions you can take advantage of, such as an exemption for investments in green funds.
  • Reduce your assets: You can lower your wealth by paying off debt, for example.
  • File your tax return on time: Late filing may result in a fine.

It is important to be well aware of the rules surrounding the box 3 tax, so that you do not pay too much tax. Do you need help with your tax return or would you like more information on how to manage your assets optimally for tax purposes? Then contact buro philip van den hurk. We are ready to help you.