How much household deduction do you get for renovation in 2026?

In 2026 you get 35% of the labour cost when the work is bought from a company in the prepayment register. The threshold is €150 and the maximum is €1,600 per person. For example, on €4,000 of labour the deduction is 35% × €4,000 − €150 = €1,250.

What is the threshold and maximum of the household deduction?

The threshold is €150 per year per person, subtracted from the calculated deduction. The maximum is €1,600 per person. Spouses can split the deduction, so the combined maximum can be up to €3,200 per year.

Does the household deduction cover materials?

No. The household deduction covers only the labour portion of the invoice. Building materials, supplies, travel costs and equipment rentals do not qualify. Ask the company for an invoice that itemises the labour separately from materials.

For contractors · Household deduction

Household deduction calculator for renovation

Calculate how much household tax deduction you get for renovation or home work in 2026. Enter the labour cost on the invoice — the calculator subtracts the threshold and shows your estimated tax credit. The deduction covers labour only, not materials.

Estimated deduction

1 250 €

Household deduction

Deduction before threshold (35 %)

1 400 €

Threshold

−150 €

Maximum

1 600 €

Labour cost on the invoice

€

Labour only — materials do not qualify for the deduction.

Payment type

Materials portion

€

Materials don't qualify for the deduction, but they're part of the customer's final price.

Split with spouse (2× maximum)

The calculator uses the amounts in force in 2026 (35%, up to €1,600/person, €150 threshold). The government has proposed raising these to 40% and €2,100, but the change has not yet been confirmed.

Customer's net cost — sales aid

Show your customer how much the renovation really costs after the household deduction.

Net cost after deduction

2 750 €

Invoice total

4 000 €

Household deduction

−1 250 €

Customer pays

2 750 €

The customer's real cost = invoice total − household deduction. The deduction applies to the labour portion only and is granted later in the customer's taxation, so they pay the full invoice first.

For contractorsLaskentapuuFrom floor plan to a finished quote the same day

~15 min / quote

€49/moTry it free→

About the household deduction

How is the household deduction calculated in 2026?

The household deduction (kotitalousvähennys) is a tax credit for renovation, care or household work done in your home or holiday home. It covers only the labour portion of the invoice — materials, travel and machinery do not qualify.

In 2026 the deduction in force is 35% of the labour cost when bought from a company in the prepayment register, or 13% when you pay wages to a worker. The threshold is €150 and the maximum is €1,600 per person. Spouses can split the deduction, raising the combined maximum to €3,200.

The government has proposed raising the deduction to 40% and €2,100 retroactively from the start of 2026, but the change has not yet been confirmed — so the calculator uses the amounts in force. The raised maximum for giving up oil heating is €3,500 until 2027.

FAQ

Household deduction — FAQ

How much household deduction do you get for renovation in 2026?: In 2026 you get 35% of the labour cost when the work is bought from a company in the prepayment register. The threshold is €150 and the maximum is €1,600 per person. For example, on €4,000 of labour the deduction is 35% × €4,000 − €150 = €1,250.
What is the threshold and maximum of the household deduction?: The threshold is €150 per year per person, subtracted from the calculated deduction. The maximum is €1,600 per person. Spouses can split the deduction, so the combined maximum can be up to €3,200 per year.
Does the household deduction cover materials?: No. The household deduction covers only the labour portion of the invoice. Building materials, supplies, travel costs and equipment rentals do not qualify. Ask the company for an invoice that itemises the labour separately from materials.