Home maintenance and renovation are important investments to maintain the value of your home and improve your living comfort. However, many people put off necessary repairs because of their cost. Fortunately, the Household Budget Allowance offers significant relief!
What does the household allowance mean in practice?
The household tax credit is a tax relief that encourages you to get professional home maintenance and improvement work done. When you buy our services, you can deduct 35% labour share directly on your tax bill.
The maximum amount of the deduction is €1600 per person per year. A couple can get a total of up to 3200 euro deductions when both claim a deduction on their own taxes.
Practical example: painting contract
A practical example illustrates the importance of the household tax credit:
- Total price of the painting contract: 6000€
- Labour's share of the price: 5000€
- Tax deduction for a couple: 1750€ (35% for work share)
- The actual cost of the painting contract: 4250€
So you can see that with the household allowance, a €6,000 project will actually cost only €4,250, which is a significant saving to take into account when planning your renovation!
How to apply for the household allowance?
Applying for the household allowance is easy:
- Keep receipts and invoices for work done
- Make sure that the invoice shows a breakdown of labour and materials
- Report the information on your tax return the following year
- The deduction is taken directly into account in your tax bill
We will always provide you with the relevant receipts and invoices, so you can clearly see the amount of deductible work.
Why should you take advantage of the household allowance?
The household credit is a win-win situation for all parties:
- You save money significant amounts in renovation costs
- Get the job done professionally and guaranteed
- You support legitimate business and Finnish work
- Avoid the risks of the grey economy
Contact us and ask more!
Want to know more about how much you could save on your renovation project with the household credit? Contact us for a free estimate!
Remember that the household deduction is renewed every year, so you should plan your major renovations so that you can take advantage of the deduction several years in a row.
Note: The information in this article is based on 2025 tax practices. Always check with the Tax Administration for the most up-to-date information.