If you own a home, the term WOZ value probably sounds familiar to you. But what exactly does this value mean and how does it affect the taxes you pay? In this article, we explain what the WOZ value is and how it relates to various taxes.
What is WOZ value?
WOZ stands for Valuation of Immovable Property. This is the value assigned to your home by the municipality and serves as the basis for various taxes. The WOZ value is redetermined annually and reflects the market value of your home as it was on January 1 of the previous year.
Impact on municipal charges
The WOZ value directly affects the amount of various municipal taxes, such as property tax (OZB). A higher WOZ value usually means that you have to pay more OZB. In addition, the WOZ value is used to calculate the sewerage levy and sometimes the waste disposal levy.
Impact on income tax
For homeowners who have their home as their primary residence, the WOZ value falls under the so-called owner-occupied home lump sum. This is an amount that you must add to your income and thus pay income tax on. The owner-occupied home lump sum is a percentage of the WOZ value.
Water tax
The WOZ value is also important for water board taxes. Water boards levy taxes to ensure safe dikes and clean water. Part of this tax is calculated based on the WOZ value of your home.
How do you check the WOZ value?
If you disagree with the assessed WOZ value, you can lodge an objection within six weeks of receiving the WOZ assessment. In that case, it is wise to collect evidence, such as recent sales prices of comparable homes in your neighborhood.
The WOZ value of your home affects various taxes: from municipal charges such as the OZB and sewerage levy to income tax and water board tax. It is therefore important to be well informed about the WOZ value of your home and, if necessary, to object to what you believe to be an incorrect valuation. This is because it can save you money and ensures fair taxation.
