What kind of work entitles you to the credit?
Note: you cannot get the credit if public financial support is paid to you for the work done in the household.
Amount of the credit: work paid for in 2022 and 2023
The credit you can receive will vary depending on the different services or work that are done in households. The service/work type affects both the percentage and the maximum credit.
Home repair or improvement and renovations
The maximum credit for household expenses that you can claim is €2,250 per person. The credit threshold per person is €100, which you have to pay yourself.
Credit is only granted for the part of the total expense that was paid for work. You can claim credit for 40% of the amount that you have paid a company for their work.
If you hired an employee, you can claim credit for 15% of the wages you paid them as well as the total amount of any employer’s contributions you have made.
Household work, nursing and care, and work on replacement of oil heating
The maximum credit for household expenses that you can claim is €3,500 per person. The credit threshold per person is €100, which you have to pay yourself.
Credit is only granted for the part of the total expense that was paid for work. You can claim credit for 60% of the amount that you have paid a company for their work.
If you hired an employee, you can claim credit for 30% of the wages you paid them as well as the total amount of any employer’s contributions you have made.
Please note: You cannot get the credit for other costs, such as equipment or travel expenses. When the company sends you an invoice for the work, the invoice must include an itemisation of costs. The itemisation shows the work-related part of the total amount. You can claim credit for household expenses based on the work-related part.
The credit for household expenses is personal. The maximum credit payable to you and your spouse together is
- €4,500 a year for renovation expenses, or
- €7,000 a year for household work, nursing and care, and replacement of oil heating.
If the tax credit you and your spouse together are entitled to is no more than €2,250 (or €3,500), you can choose to claim the entire credit amount for just one of you. This way, you will only need to pay the credit threshold amount once.
If the amount of credit claimed for one spouse is more than the maximum amount of credit per person, the Tax Administration will automatically deduct the exceeding credit amount from the other spouse’s taxes. In this case, both spouses will have to pay the credit threshold amount of €100.
Example: You and your spouse have ordered renovation work for your kitchen. The maximum credit for renovation expenses is €2,250 per person both. The total credit payable to you and your spouse is therefore €4,500.
You want to divide the tax credit for household expenses between yourselves. The sum total of the invoice is €13,000. The amount charged for work is €6,000.
Both of you submit the invoice total and the amount charged for work on your tax return. In addition, you both indicate what part of the expenses you have paid. In this case, you have paid €3,000 because you have divided the expenses between yourselves. The Tax Administration calculates the credit and subtracts the threshold amount on your behalf.
If you do not divide the credit but one of you claims the whole credit, the amount exceeds the maximum credit. In this case, the Tax Administration automatically transfers the exceeding part to the spouse’s tax assessment.
If the tax credit for household expenses is greater than your total taxes, the Tax Administration automatically subtracts the exceeding part from your spouse’s taxes.
An unmarried partner is equally entitled to the tax credit. To qualify for the credit, the partner must have paid expenses that entitle to the credit and must live in the same apartment. However, a tax credit can be transferred from one spouse to the other only when they are considered spouses from the point of view of taxation. Who are considered spouses in taxation?