Tax credit amount and the credit threshold
The credit for household expenses is specific to the calendar year. The credit is granted for the year when you pay the company’s invoice or the employee’s wages and indirect wage costs.
The amount of credit and the personal liability threshold are the same for 2025 and for 2026.
Attention begins.
News
Attention ends
How much is the credit for household expenses?
The amount of credit is the same for all work qualifying for the tax credit for household expenses. You can claim an increased credit only for expenses relating to the replacement of oil heating.
Household work, nursing and care, and maintenance and modernisation work
- Work bought from a company: You can claim 35% of the amount paid for work. The credit is calculated based on the work-related amount including VAT.
- Paid work: If you hire a person, you can claim 13% of the wages and the indirect wage costs that you pay.
Replacement of oil heating
- Work bought from a company: You can claim 60% of the amount paid for work. The credit is calculated based on the amount paid for work including VAT.
- Paid work: If you hire an employee, you can claim 30% of the wages and the indirect wage costs that you pay.
Note that supplies or travel expenses do not qualify for the credit for household expenses. Make sure the invoice includes an itemisation showing the work-related amount, so that you can claim the correct amount of credit.
You can use the calculator to calculate the credit
Personal liability threshold
The personal liability threshold is €150 per person a year. The personal liability threshold is subtracted only once a year. If you have more work done that qualifies for the credit during the same year, the personal liability threshold will not be subtracted again.
Maximum amount of credit
Household work, nursing and care, and maintenance and modernisation work:
- The maximum amount of tax credit for household expenses is €1,600 per person a year.
- You will receive the maximum amount of credit when the work-related portion of the invoice paid to a company is €5,000.
Replacement of oil heating:
- The maximum credit is €3,500 per person a year.
- You will receive the maximum amount of credit when the work-related portion of the invoice is €6,083,34.
How to calculate the credit
When ordering work from a company, first make sure that the company is in the prepayment register. Check the invoice to see how much you paid for the work. Make sure that the work-related amount includes VAT.
For example, if you had household work done in 2025, the credit is 35% of the work-related amount including VAT. However, you must subtract the personal liability threshold of €150 from the amount. The result is the amount of credit for household expenses you will receive.
Esimerkki alkaa
Example: tree felling in your garden
The work-related amount is €600 (incl. VAT). Tree felling is regarded as household work, which entitles you to a 35% credit.
€600 × 35% – personal liability threshold €150 = €60. The amount of credit is €60.
Esimerkki päättyy
Esimerkki alkaa
Example: bathroom renovation
The work-related amount is €8,000 (incl. VAT). Modernisation work entitles you to a 35% credit.
€8,000 × 35% – personal liability threshold €150 = €2,650. However, the credit you receive is only €1,600, because that is the maximum amount of credit for maintenance and modernisation work.
If you have a spouse, the Tax Administration will automatically subtract the amount exceeding the maximum from their taxes. However, your spouse will also have to pay the personal liability threshold of €150. The credit your spouse receives is €900 (€2,650 – €1,600 – €150).
Esimerkki päättyy
Tax credit for household expenses shared with spouse
The tax credit for household expenses is personal but you can share it with your spouse.
- If only one of you claims the credit, the personal liability threshold (€150) is paid only once.
- If the amount of credit claimed by one spouse exceeds the maximum amount, the Tax Administration automatically subtracts the exceeding amount from the other spouse’s taxes. In that case, both spouses will have to pay the personal liability threshold of €150.
- If the amount of tax credit is more than your total amount of taxes, the Tax Administration will subtract the remaining credit amount from your spouse’s taxes.
Esimerkki alkaa
Example: Kitchen renovation costs shared with spouse
You and your spouse have the kitchen renovated. The total cost is €13,000, and the work-related amount is €6,000. The maximum credit for household expenses is €1,600 per person, i.e. €3,200 for the two of you.
If you split the credit in half:
- You both report the invoice total and the total work-related amount including VAT in your tax returns.
- Both report their portion of the work-related amount, i.e. €3,000 (€6,000 : 2).
- The Tax Administration calculates the credit for both of you and subtracts the personal liability threshold of €150 from both.
If one spouse claims the total amount of credit:
- The Tax Administration automatically subtracts the amount exceeding the maximum credit from the other spouse’s taxes.
- Both spouses will have to pay the personal liability threshold.
Esimerkki päättyy
Does a civil partner qualify for the credit?
Your civil partner can claim the credit for household expenses if they have paid the costs qualifying for the credit and if they live in the same household as you.
However, the credit can be transferred to the partner only when the two persons are spouses for tax purposes.
What is a spouse for tax purposes?
How does the credit for household expenses affect the amount of tax?
The credit for household expenses is subtracted directly from your taxes. In other words, the credit is subtracted from the amount of taxes imposed on your wages and other income. Because of this, the credit for household expenses has a bigger effect than the deductions made from your income before taxes are imposed.
If the amount of credit exceeds the amount of taxes you have to pay, the Tax Administration automatically subtracts the exceeding amount from your spouse’s taxes if you have a spouse.
If the exceeding amount of credit is also more than the amount of tax imposed on your spouse, part of the credit for household expenses may remain unused. The unused amount cannot be carried forward to the next year.