It is now the third Wednesday in September. Traditionally, the new government plans for next year were presented yesterday. Due to the current corona crisis, it was already clear in advance that it would not be a very cheerful story financially. Nevertheless, there are a few plans that will favorably affect your wallet in 2021. It’s mostly good news, actually; with the necessary uncertainty about the chance of success, though. A brief overview of the most important plans.
The wallets of workers
According to plans, workers will benefit the most next year (1.2%). Because the tax on labor will be reduced from 37.35% to 37.15%, we will have more net left over from our salary. And the general tax credit will also increase slightly; that is something that especially households with a somewhat lower income will benefit from. The increase in the employed person’s tax credit also ensures that workers with an income of up to € 105,000 have more left over.
There is less good news for entrepreneurs. The self-employed deduction will be phased out more quickly. They are compensated by the measures described above, so that they will have more left over next year. The self-employed deduction is being phased out so that an equal tax burden arises between employees and self-employed persons.
All workers will notice the consequences of the changing tax laws next year. In the vast majority of cases, it will be beneficial for your wallet in 2021. The different purchasing power charts are highly dependent on economic developments in the coming period.
The wallets of starters and the costs of living
Starters in the housing market between the ages of 18 and 35 also receive a financial boost. The transfer tax is no longer applicable to all home buyers in this group. This is now 2% of the purchase price. It does not matter whether you are a real starter or an intermediate. Buyers in this age category get this benefit. Here you can read the explanation of the tax authorities.
35+ will continue to pay 2%, but those who buy a home to rent out will pay 8% transfer tax. It is a somewhat curious measure, which seems mainly intended to implement this action in a budgetary neutral manner.
In addition, the mortgage interest deduction will be further reduced. This development started last year and should lead to a maximum deduction of 37.05% in 2023. The highest rate will fall to 43% next year, followed by two further reductions of 3% per year.
Ultimately, the mortgage interest deduction could disappear completely, but I wrote an article about that last week .
About 260,000 tenants actually live in too expensive a home. These are ‘expensive crooked residents’ who now have a low income, but have ended up in a more expensive rented house earlier. This group has too high housing costs and is therefore vulnerable to other financial problems or debts. They receive a one-off rent reduction of around € 40 per household.
Energy costs will also change.
Per m 3 gas tax is increased by € 0.03. On the other hand, households receive an additional € 31 discount on energy tax. On balance, only residents of less well-insulated houses will pay more.
The wallet in 2021 and box 3
Here is a change that benefits nearly 1 million people , according to the tax authorities . The capital yield tax in box 3 will change (again). In this case, the tax-free allowance increases from € 30,846 to € 50,000 Do you have a tax partner? Then you may together have € 100,000 tax-free in savings or investments.
Above this amount, the tax authorities continue to calculate tax on the notional return. In this article , you can read an explanation of how box 3 works.
The power load in the three brackets increases as follows:
|Power||Tax in 2021 (2020 rate)|
|€ 0 to € 50,000||0%|
|€ 50,001 to € 100,000||0.59% (0.54%)|
|€ 100,001 to € 1,000,000||1.4% (1.26%)|
|more than € 1,000,000||1.76% (1.58%)|
Tax rates per person
Would you like to quickly calculate what this means for your personal finances? Fellow blogger Mr. FOB has developed a calculation tool for this.
Your personal situation
No one quite fits into the situations described above. There are many factors that will determine what your wallet will look like in 2021. Fortunately, NIBUD has again made a calculation tool, with which you can better visualize your personal situation. And as usual, this purchasing power calculator can be found here.
All purchasing power pictures are under the explicit reservation that the situation around corona should not deteriorate further. Still, it doesn’t look negative for next year.