When do I receive the AOW state pension, and is it taxed in the Netherlands?

The AOW (Algemene Ouderdomswet) is the Dutch state pension. You become entitled to AOW payments when you reach the AOW age, which is currently 67 years (rising to 67 years and 3 months from 2028, subject to further increases linked to life expectancy). You build up AOW rights by residing in the Netherlands, at a rate of 2% per year for each year between age 15 and the AOW age.

The AOW amount depends on whether you live alone or with a partner. For 2024, the full AOW for a single person is approximately €1,400 per month gross; for partners it is approximately €960 each. If you lived outside the Netherlands for periods between age 15 and your AOW age, your AOW may be reduced proportionally.

AOW benefits are taxable income in Box 1. However, AOW recipients do not pay AOW premiums (a component of the social insurance contributions deducted from workers' salaries), which effectively reduces the tax rate applied to the pension. The effective tax rate on AOW income is typically around 19.03% for pensioners under the special AOW premium threshold.

SVB (Sociale Verzekeringsbank) administers the AOW and makes the monthly payments. Applications should be made about four months before reaching AOW age.