Provisional tax assessment: paying Dutch income tax in instalments

As a freelancer nobody withholds tax for you: the assessment on your profit arrives afterwards, in one go. A provisional assessment (voorlopige aanslag) turns that around, letting you pay in monthly instalments. It prevents a big bill later and, more importantly, tax interest. Here is how it works.

What a provisional assessment is

A provisional assessment is an advance estimate of your income tax and healthcare contribution for the current year. You (or the tax authority, based on earlier years) estimate your profit, and you pay the estimated tax in monthly instalments. After you file, the final assessment settles the difference: pay extra if you estimated low, get money back if you estimated high.

It also works the other way: if you expect a refund, for instance from mortgage interest relief, a provisional assessment can pay it out monthly in advance.

Why it can be smart

• No big hit afterwards. The assessment on a good year can run to tens of thousands of euros. Twelve instalments are manageable; one bill, eighteen months later, often is not.
• You avoid tax interest. The tax authority charges interest on assessments imposed late; for income tax the 2026 rate is 5 percent, applied to assessments imposed from 1 July after the tax year. Requesting a provisional assessment in time, or filing before 1 May, generally keeps you clear of it. Check the current rate on belastingdienst.nl.
• It enforces discipline. The money leaves every month before you can spend it, just like in employment.

How to request one

You request it online via Mijn Belastingdienst, with an estimate of your profit. It does not have to be perfect: take last year, adjust for what you expect to change, and round generously. The calculation from profit to tax is in the guide on the income tax return; for a quick estimate use the net income calculator.

Adjust it during the year

A provisional assessment is not a contract; you can adjust it online all year, as often as needed. Profit running ahead of plan? Raise it, so the instalments grow with you and you avoid an extra bill with interest. Profit disappointing? Lower it: your instalments drop immediately and overpaid amounts come back. A natural moment to check is after each quarter, when you file VAT anyway.

How Finq helps

Finq's reports show your profit so far, exactly the number you need to set or adjust your provisional assessment. To see what to set aside monthly, use the tax reserve calculator.