Tax credit amount and the credit threshold
The amount of the credit depends on what type of work you are claiming it for. The percentage rate and maximum amount of credit vary by work type. The credit threshold is always €100 per person per calendar year.
Use the calculator to determine your credit amount
Renovations, maintenance and modernisation work
The maximum tax credit for household expenses is €2,250 per person per year. The credit threshold is €100, which you have to pay yourself. The credit is granted only for the part of the expenses that relates to work.
- Work that you have bought from a company: You can claim 40% of the amount paid for work. The credit for household expenses is determined by the amount paid for the work with VAT. You will receive the maximum amount of credit if the amount paid for the work specified in the invoice is at least €5,875.
- Work for which you have hired an employee: If you hired an employee for the work, you can claim 15% of their wages as well as any employer’s contributions you have paid.
Note that costs for supplies or travel expenses do not qualify for the credit for household expenses. Make sure that the invoice includes an itemisation of the amount related to work, so that you can claim the correct amount as credit.
Household work, nursing and care, and replacement of oil heating
The maximum tax credit for household expenses is €3,500 per year. The credit threshold is €100, which you have to pay yourself.
The credit is granted only for the part of the expenses that relates to work.
- Work that you have bought from a company: You can claim 60% of the amount paid for work. The credit for household expenses is determined by the amount paid for work, including VAT.
- Work for which you have hired an employee: If you hired an employee for the work, you can claim 30% of their wages as well as any employer’s contributions you have paid.
Note that costs for supplies or travel expenses do not qualify for the credit for household expenses. Make sure that the invoice includes an itemisation of the amount related to work, so that you can claim the correct amount as credit.
How is the credit calculated?
When ordering the work from a company, first make sure that the company is in the prepayment register. Check on the invoice how much you paid for the work. Make sure that this amount includes VAT.
For example, if you ordered household work, the credit is 60% of the amount paid for the work including VAT. However, you must subtract the credit threshold of €100 from this amount. The result is the amount of credit for household expenses you will receive.
Example 1: You had a company cut down some trees in your yard. In the invoice, the cost of work was €400. The felling of trees is considered household work, which entitles you to a 60% credit.
€400 × 60% – credit threshold €100 = €140. You can claim €140 as credit for household expenses.
The credit threshold is subtracted only once per year. If you order more work that also entitles you to the credit for household expenses during the same year, you do not need to subtract the credit threshold amount again.
Example 2: You had your bathroom renovated. The cost of work with VAT was €8,000. Renovation work entitles you to a 40% credit. €8,000 × 40% – credit threshold €100 = €3,100. However, you will only receive a credit of €2,250, because that is the maximum amount of credit for maintenance and modernisation work.
Frequently asked questions
The credit for household work is personal. Together with your spouse, you can receive credit as follows:
- Renovation expenses: €4,500 in total per year.
- Household work, nursing and care, and replacement of oil heating: €7,000 in total per year.
If you have expenses for both renovation work and household work or nursing and care, you can claim a total of €7,000 of credit. However, the portion related to renovation work may be no more than €4,500.
One spouse can claim the full amount of credit if the credit amount does not exceed the following:
- Renovation expenses: €2,250
- Household work, nursing and care, and replacement of oil heating: €3,500
In this case, the credit threshold is paid only once.
If the amount of credit claimed by one spouse exceeds the maximum amount, the Tax Administration transfers the exceeding amount of expenses to the other spouse, which means that both spouses must pay the credit threshold.
Example: You and your spouse had your kitchen renovated. The renovations cost €13,000 in total, with the cost of work being €6,000. The maximum credit is €2,250 per person, or €4,500 for two people.
If you split the credit in half, both spouses must report the invoice total and the amount related to work in their tax returns. In addition, both must enter the amount that they paid, which in this case is €3,000. The Tax Administration calculates the credit and subtracts the threshold amount from it.
If you do not split the credit but one spouse claims the full amount of expenses, the Tax Administration transfers the amount exceeding the maximum credit per person to the other spouse. Both spouses must still pay the credit threshold.
If the amount of tax credit is more than your total amount of taxes, the Tax Administration will automatically deduct the remaining credit from your spouse’s taxes.
Your partner has the right to claim the credit for household expenses if they have paid expenses entitling them to the credit and if they live in the same household as you. You do not have to be married. However, you must be considered spouses in terms of tax assessment in order for any exceeding credit to be transferred between the two of you.
What is a spouse for tax purposes?
Household work, nursing and care: maximum credit €3,500 per year
You can claim the maximum amount of €3,500 in credit for household expenses if you pay a company €6,000 for their work (€6,000 × 60% – credit threshold €100 = €3,500).
If you hire an employee, the calculation is different: From the total amount that you pay to your employee, deduct 15% as well as any employer’s contributions. Subtract the credit threshold amount of €100. The result is the credit you can claim. The maximum amount is still €3,500.
Renovations, maintenance and modernisation work: maximum credit €2,250 per year
You can get €2,250 in credit for household expenses, i.e. the maximum amount, if you pay a company €5,875 for the work they have done.
€5,875 × 40% – credit threshold €100 = €2,250.
If you hire an employee, the calculation is different: From the total amount that you pay to your employee, deduct 15% as well as any employer’s contributions. Subtract the credit threshold amount of €100. The result is the credit you can claim. The maximum amount is still €2,250.