What to do with demesne limit

[EmoPro]

How do you guys manage your demesne limit?
Lets say we can hold 8 holdings. I always hold an extra 1 or 2 holdings or around 25% of your limit eg: 8*25/100 = 2 holdings.

Can someone give me an example of how is the penalty (Levies and taxes) being calculated with each holdings I go over limit with?

 

[RelVleDy]

I can't give you the formula, but I personally never like to be above any demesne, especially on CK2+ Plus. Vassals receive something called "efficient demesne," providing an increase in their taxes due to their limited total demesne. While the player won't see all this gold go to their coffers, the AI vassals will still elect to construct buildings, given they have enough gold. Being above the total demesne limit also gives a negative opinion modifier to all your vassals.

Furthermore, the more vassals you have, the more Councillors work for your kingdom. This is especially important when converting provinces to different religions or cultures, as multiple Chaplains can help, so I'm more than happy giving away some provinces to see what happens.