Belgian pension savings 2026 : tax reduction and the 2nd cap trap
How much do you actually get back from pension savings? Calculate your tax reduction based on the amount paid in, and avoid the trap of the second tax cap. Free, instant calculation.
Parameters
Enter the amount paid in to see your estimated tax reduction.
Two caps, one trap to know about
Pension savings is one of the few Belgian tax benefits available to nearly everyone, but its two-cap structure creates a zone where saving more actually loses you tax reduction. This calculator shows you exactly where you stand.
1. The standard cap (€1,050, 30%)
Paying in up to €1,050 entitles you to a 30% reduction, up to €315 maximum. This is the default choice, and the simplest.
2. The higher cap (€1,350, 25%), on the total, not the bracket
If you opt for the higher cap, the 25% rate applies to the entire amount paid in, not just what's above €1,050. The result: between €1,050 and €1,260, you get back less than by staying at the standard cap. You need to exceed €1,260 for the second cap to actually become more advantageous.
3. The real cost: the final tax
Saving more increases your accumulated capital, which will be taxed at maturity (final tax on the capital). The annual tax reduction is only part of the equation, it doesn't fully cancel out the tax on the capital in the end.
What this calculator does not cover
The reduction shown is theoretical: it assumes your base tax is sufficient to absorb it in full. If your taxable income is low, the actual reduction may be lower. To estimate your base tax, see the site's income tax (IPP) calculator.
Frequently asked questions
What are the pension savings caps in 2026?
Two caps to choose from: up to €1,050 paid in, the tax reduction is 30% (max €315); from €1,050.01 to €1,350, it's 25% on the total amount paid in (max €337.50).
What is the trap of the second cap (€1,350)?
The 25% rate applies to the TOTAL amount paid in, not just the portion above €1,050. So if you pay in between €1,050 and €1,260, you get back LESS than by stopping exactly at €1,050 (30%). The break-even point of the second cap is €1,260, below that, stick with the first cap.
Am I always entitled to the reduction if my income is low?
No: if your base tax is zero, you're not entitled to any reduction. If it's lower than the calculated amount, the actual reduction is capped at that tax. This calculator estimates the theoretical reduction, not the guaranteed amount based on your full tax situation.
Can I change caps every year?
Yes, you need to communicate your choice to your bank or insurer each year. If you say nothing after choosing €1,350 one year, the cap automatically drops back to €1,050 the following year.
Can I combine the reduction for two contracts?
No, only one pension savings contract is eligible for the reduction per person per year. If you and your partner are taxed jointly, each of you is separately entitled to the maximum amount, provided you each have your own contract.
Does paying in more always pay off in the end?
Not necessarily net: saving more increases the final capital, which will be subject to a higher final tax (tax on the accumulated capital) at maturity. The upfront tax reduction is only part of the equation.
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