What is the household deduction (kotitalousvähennys) in Finland?

The Finnish household deduction is a direct tax credit for work performed in your home, secondary residence, or vacation cottage. It is deducted euro-for-euro directly from your payable tax, making it much more valuable than a regular deduction against taxable income.

What are the rates and caps for 2026?

For standard renovation, cleaning, and healthcare work, the credit is 35 % of invoiced labor, up to a maximum of 1,600 € per person per calendar year (60 % and 3,500 € for oil heating phase-out). There is an annual deductible of 150 € per person.

How can spouses optimize the deduction?

If the deduction amount fits within one spouse's individual maximum (1,600 €), it is best claimed entirely under that spouse. That way, your household only pays one 150 € annual deductible instead of two.

Tax Savings Finland 2026

Household Deduction Calculator Finland (Kotitalousvähennys 2026)

Estimate your tax credit for home renovations, cleaning, and care services under 2026 Finnish Tax Administration (Vero.fi) rules.

1. Type of work & deduction rate

2. Number of applicants (spouses)

Labor cost from invoice (incl. VAT)Eligible deduction share (35 %)

€

Materials, equipment & travel expensesNot eligible for deduction

€

Tax Credit Deducted from Taxes

+900 €

This amount is deducted 100 % directly from your payable income tax (or refunded as cash tax return).

Calculation Breakdown

Total invoice amount:4 000 €

• Labor cost:3 000 €

• Materials & travel:1 000 €

Gross tax credit (35 %):+1 050 €

Annual deductible (1 hlö):−150 €

Net Out-of-Pocket Cost

You save 23 %

3 100 €

Remaining deduction headroom:700 €

Claimed: 900 €Annual cap: 1 600 €

Key Rules for the Finnish Household Deduction

1. Prepayment Register Requirement

Always verify via YTJ.fi (Business Information System) that the contractor is enrolled in the Finnish prepayment register (ennakkoperintärekisteri). If unregistered, no tax credit is granted.

2. Couple Sharing Benefit

The deduction is individual. Married couples or registered partners can combine deductions, doubling the ceiling to 3,200 € for standard work and 7,000 € for oil heating.

3. Direct Tax Credit (Not Just Income Deduction)

Unlike many deductions, this is a true tax credit subtracted euro-for-euro directly from your final tax bill, giving you immediate savings on your tax card or tax refund.

Key Rules for the Finnish Household Deduction

1. Prepayment Register Requirement

2. Couple Sharing Benefit

3. Direct Tax Credit (Not Just Income Deduction)

Frequently Asked Questions