Dutch homeowners deducted €24.8 billion from their taxable income through mortgage tax relief and other rebates in 2024, up 7% on 2023 and the second annual rise in a row, national statistics agency CBS said on Friday.

Most of the total, 94%, came from mortgage interest relief, with the remainder coming from a rebate on the home owners charge (eigenwoningforfait) for people with little or no mortgage debt.

The increase follows years of decline and was driven mainly by higher mortgage interest rates and larger mortgage debts, the CBS said.

Couples with children benefited most, deducting €11.4 billion from income tax, resulting in a €4.6 billion tax advantage, the CBS said. Single-person households and single-parent families made the least use of the scheme, largely because they are less likely to own a home.

Higher-income households received most of the tax benefit. The top 20% of earners accounted for 49% of the €9.5 billion total, while the lowest 20% received just 1%.

However, the CBS said the deduction reduces tax bills proportionally more for lower-income households, cutting their tax burden by 27%, compared with 5% for the highest earners.

The generous Dutch mortgage tax relief system has long been criticised by economists and politicians, and two of the three parties in talks on forming a new government have backed calls to phase it out.

Currently home owners can offset the part of interest they pay on their mortgages against tax for a maximum of 30 years, if they have either a linear or annuity-based mortgage. In 2026, the deductible mortgage interest rate is 37.56%.

A large proportion of Dutch homeowners would not struggle financially if the mortgage interest tax relief were reduced or abolished, according to research published last year by ABN Amro.