Tax credit for household expenses

The tax credit for household expenses reduces the amount of tax you have to pay. You can claim the credit if you pay for work to be done in your home, such as cleaning, child care, renovation, or computer installation. You can also claim the credit for work done at a holiday home that you own.

Do you want to claim tax credit for household expenses?

See instructions: How to claim tax credit for household expenses

Tax credit for household expenses in 2019

The maximum credit that you can claim for 2019 is €2,400. The credit threshold is €100, which you have to pay yourself. 

What kind of work entitles you to the credit?

What are the requirements for the credit for household expenses?

Which types of work entitle you to the credit for household expenses?

How much credit can be claimed?

The maximum credit for household expenses that you can claim for 2020 is €2,250. You can get the maximum credit if the amount that you pay to a company for their work is at least €5,875 as stated on the invoice. The credit threshold 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 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 contain a breakdown of costs that shows which part of the total amount is for the cost of the work. You can claim credit for household expenses based on the work-related part.

Can the credit be divided between me and my spouse?

You can divide the credit between you and your spouse. This means that the total amount of tax credit for household expenses you two can get is €4,500. However, you will both have to pay the credit threshold amount of €100. If you pay less than €5,875 in total for renovation and household work as a family, we recommend that just one of you claim the credit. This way, you will only need to pay the credit threshold amount once.

You may not be able to get the credit if you have very little tax to pay. In this case, we can take your tax credit into account in your spouse’s tax assessment. In the same way, if your credit exceeds the maximum amount, your spouse can benefit from the excess credit. This means that your spouse will have less tax to pay. The effect of your credit for household expenses on your spouse’s tax assessment is calculated automatically.

How to calculate your credit for household expenses

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. The credit is 40% of this amount. 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: 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.

Frequently Asked Questions

You can claim tax credit for household expenses per calendar year.

The credit is deducted from the taxes of the year when you paid the company’s invoice or the wages and employer’s contributions for your employee. For example, if you order renovation work at the turn of the year and you pay invoices for the work during two different calendar years, you can claim the tax credit for both years. However, you will also have to pay the credit threshold amount twice.

The credit is deducted primarily from your taxes on earned income and capital income. Most other deductions reduce the amount of earned income that is taxed, not the amount of tax itself. This means that the tax credit for household expenses has a bigger effect on your taxes.

Please note that if you do not have enough taxes payable to benefit from the full amount of the credit, the amount that was not credited to you this year cannot be carried over to the next year.