Do I have to repay healthcare allowance at a higher income?

The short answer

If your final annual income is higher than estimated, you will have received too much healthcare allowance. This excess amount must be fully repaid to the Tax Authorities. The repayment is automatically calculated after the final determination of your healthcare allowance. You will receive a letter with the amount to be repaid. This also applies if your income turns out to be only slightly higher than expected.

What does the law say?

The healthcare allowance is regulated in the Healthcare Allowance Act. This law stipulates that the allowance is provisionally calculated based on estimated income, but is ultimately determined based on actual income. If the actual income is higher, a repayment obligation arises. The Tax Authorities must determine the final amount within three years after the allowance year.

What do you need to look out for?

Be careful to estimate your income realistically when applying. Report income changes to the Tax Authorities in a timely manner to avoid large repayments. Take into account all sources of income such as salary, benefits, pensions and asset income.

Example from practice

Maria estimates her 2023 income at €25,000 and receives healthcare allowance based on this. Due to a promotion and salary increase, her actual income turns out to be €28,000. This higher income means she was entitled to less healthcare allowance. The Tax Authorities calculate that she has received €400 too much. Maria has to repay this full amount, even though the income increase was unexpected.

What can you do?

Take these concrete steps to prevent or resolve problems.