Taxes

Income averaging has been abolished, but you can sometimes still claim money back

Written by Ilias4 min read

Income averaging has been abolished, but you can sometimes still claim money back

For years, income averaging was one of the best-kept secrets of income tax: anyone with three consecutive years of strongly fluctuating income could claim tax back. The scheme was abolished as of 2023, but one door remains open: the 2022 through 2024 period. Especially for freelancers with one top year among lean years, or starters who began from employment, serious money may still be there. This article explains how to use that last chance.

How averaging works

With averaging, you add up your box 1 incomes from three consecutive years and divide the total by three. You then calculate the tax as if you had that average income in each of those years. If the tax on the averaged incomes is lower than what you actually paid, you get the difference back insofar as it exceeds the 545 euro threshold. The benefit arises because a peak year partly falls into the top bracket, while the same income averaged over three years stays in lower brackets.

Who the final period is interesting for

The final period over which you may average is 2022, 2023 and 2024, and each year may only be part of one averaging period. If you already used one of these years in an earlier request, this route is off. Your chances are best if your income fluctuated substantially across these three years: a spike from a large assignment or the sale of business assets, a lean starting year next to two good ones, a switch from employment to entrepreneurship, or a year with little income due to illness or leave. With a stable income, averaging almost never yields anything.

Until when can you file the request?

You file the request after the final assessments for all three years are set, and no later than 36 months after the last of those assessments has become irrevocable. For the 2022-2024 period this means in practice that the deadline depends on when your final 2024 assessment was issued; for most entrepreneurs the window therefore closes somewhere in 2028 or 2029. Still, do not wait too long: the request is little effort, and otherwise the money simply stays with the tax authorities.

How to go about it

First work out whether it pays: line up your box 1 taxable incomes for 2022, 2023 and 2024 and have an averaging calculation made. If the refund exceeds the 545 euro threshold, you send a written request with the calculation to the tax authorities. No separate return is needed and the refund has no consequences for your benefits or other schemes; it is purely a recalculation of tax already paid. If you are unsure whether your years qualify, have it calculated: it is one of the last times this scheme can still yield anything.

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.