Avoiding tax interest: here's how
Written by Ilias Aarrass7 min read · Published on · Last reviewed on 
In short
Tax interest is 5 per cent in 2026 for both income tax and corporate tax, and for income tax it runs from 1 July after the tax year.
- File before 1 May and the tax authorities issue an assessment without tax interest if it follows your return.
- An extension through your bookkeeper does not stop the interest; an accurate provisional assessment alongside does.
- Collection interest is different: it only starts when you pay an assessment late and is 4.3 per cent in 2026.
- A VAT correction can also carry interest, counted from the end of the year the correction concerns.
If you pay tax late or file your return late, the tax authorities can charge tax interest. That interest can add up considerably and is an unnecessary cost. This article explains how tax interest works and how to avoid it.
What is tax interest?
Tax interest is interest the tax authorities charge if you pay tax later than intended. This happens, for example, if you file your return late or if it later turns out you paid too little. The interest runs over the period the amount was outstanding. Do not confuse it with collection interest, which only starts once you pay an assessment late; that is 4.3 per cent in 2026. See also unable to pay your tax.
When do you get tax interest?
You risk tax interest with income tax and corporate tax if your final assessment leads to an additional payment imposed after a certain date. Also with a late or incorrect VAT return that you correct with a supplementary return, interest can be charged.
How do you avoid tax interest?
The best way is to file and pay your return on time and in full. If you expect an additional payment with income tax, request a provisional assessment in time or have your existing assessment adjusted. That way you pay the right amount on time and prevent interest from accruing.
What do you do with a mistake?
If you discover you paid too little, correct it as soon as possible, for example with a supplementary return for VAT. The faster you fix it, the less interest accrues. Waiting only makes it more expensive. Tidy bookkeeping and timely filing are your best protection against unnecessary interest.
How to stay ahead of the interest
Tax interest on income tax runs from 1 July after the tax year until the date on your assessment. In 2026 that rate is 5 per cent, so a slow assessment can cost hundreds extra. The remedy is simple: make sure the tax authorities know sooner what you owe.
- File before 1 May; the tax authorities then guarantee an assessment without tax interest (if in line with your return). All the dates are in the 2026 tax deadlines.
- If profit rises, request a provisional assessment immediately or raise the current one; what you already paid carries no interest.
- Using the extension scheme through your bookkeeper, realise interest still runs; a provisional assessment alongside absorbs that.
- The same principle applies to VAT: filing a supplementary return quickly limits interest on the amount due.
The interest rates and the dates
Tax interest is avoidable, but only if you know the dates on which it starts running. These are the 2026 figures.
| Tax | Rate in 2026 | Interest runs from |
|---|---|---|
| Income tax | 5% | 1 July following the tax year |
| Corporate income tax | 5% | 1 July following the financial year |
| Return filed before 1 May | No interest | Provided the assessment follows the return |
| Provisional assessment adjusted in time | No interest | The cheapest way to avoid interest |
Frequently asked questions
When does tax interest start running?
For income tax on 1 July after the tax year ends, until six weeks after the assessment date. Filing before 1 May generally avoids it entirely.
How high is the tax interest?
In 2026 the tax interest rate is 5 per cent, for income tax and corporate tax alike. The rates are set periodically, so check them each year; prevention is cheaper either way.
Does my bookkeeper's extension prevent the interest?
No, the extension only buys filing time; interest still runs from 1 July. So combine the extension with an accurate provisional assessment.
What if my profit exceeds expectations?
Raise your provisional assessment immediately through the tax portal. No interest accrues on what you pay early; waiting for the final assessment only adds cost.
Do I receive interest on a refund?
Only in specific cases, for instance when the tax authorities take too long after your return. Do not count on it; in practice the system is nearly one-way.
Does tax interest apply to VAT too?
Yes, on amounts paid through a supplementary return, counted from the end of the year the correction concerns. Filing fast limits the damage. See filing a VAT correction.
Sources
- Overview of tax interest percentagesBelastingdienst · belastingdienst.nl
Sources checked on
This article provides general information based on the rules known for 2026 and does not replace personal tax advice. For your specific situation, we're happy to take a look with you.
