How is the tax credit calculated?

If you pay a company for the work:

First, check that the company is in the prepayment register. Then look at the invoice you paid and see how much the work-related part was. Make sure that this amount includes VAT. The credit for household expenses is determined by the amount paid for the work with VAT. In the case of renovation work in your home, the credit percentage is 35% of the renovation's price in 2025.

However, you must subtract the credit threshold of €150 from this amount. The result is the amount of credit for household expenses you will receive.

Example: You can get €1 600 in credit for household expenses, i.e. the maximum amount, if you pay a company €5,000 for the work they have done. (€5,000 × 35%) – credit threshold €150 = €1,600.

If you hire an employee, the calculation is different:

From the total amount that you pay to your employee, deduct 13% (year 2025) as well as any employer’s contributions. Subtract the credit threshold amount of €150. The result is the credit you can claim. The maximum amount is still €1,600.