Tax Deductions and Allowances – Belgium

Basic tax-free amount for 2026 (income year 2025). Applied in first bracket. May increase with dependents (children, elderly relatives). Calculated as discount against total tax: €10,910 × 25% = €2,727.50 reduction.

Automatically deducted from employment income. Covers work-related costs without documentation. Reduces taxable base significantly. Actual expenses can be claimed if higher, but requires receipts.

Contributions to pension savings schemes provide tax reduction (not deduction). Limits apply. Popular way to reduce tax while saving for retirement. Long-term lock-in applies.

Deduction for mortgage interest on primary residence. Rules vary by region (Flanders, Wallonia, Brussels) and when loan taken. Older loans may have more favorable treatment. Significant benefit for homeowners.

Daycare and after-school care expenses deductible. Limits and conditions apply. Must use registered providers. Reduces tax burden for working parents.

Donations to recognized charities provide tax reduction. Minimum €40 per donation. Must keep receipts. Popular for reducing tax while supporting causes.

Tax-free allowance increases with dependent children. Each child adds to non-taxable amount. Single parents receive additional benefits. Family size significantly reduces tax.

Caring for elderly parents or relatives may increase tax-free allowance. Must prove dependency and care. Conditions apply.