Household tax deduction
Did you know that you can deduct part of the labor costs from your taxes as a household tax deduction? On this page, we explain what the household tax deduction is, how much you can claim, and how to apply for it.
What is the household tax deduction in Finland?
You can receive a tax relief for work carried out in your home or holiday home, known as the household tax deduction. When you hire a professional to carry out installation or renovation work, you can receive financial support from the state by applying for a household tax deduction for the labor portion of the costs.
Who gets the household tax deduction?
In Finland, a person who is liable for tax may claim the household tax deduction for work carried out in their own home or holiday home, provided the conditions are met.
The deduction can also be claimed for work carried out in the homes of close relatives, as long as the person claiming the deduction is the one who pays for the work or service. This is worth remembering when ordering installation services for your parents or grandparents, as you may be entitled to claim the household tax deduction for the labor costs. However, parents cannot claim the deduction for work carried out in their children’s homes (somewhat paradoxically).
The household tax deduction applies only to natural persons, not to companies or other legal entities.
How much is the household tax deduction?
In 2025 and 2026, the household tax deduction is 35% of the renovation and installation labor costs you have paid, minus a €150 deductible. The maximum deduction is €1,600 per person per year. For spouses, this means up to €3,200 in total (€1,600 each, minus the deductible per person).
If the deductible amount does not exceed €1,600, it is advisable to claim it under only one person’s name, so the deductible does not need to be paid twice. The deductible is applied per year, not per project.
Kitchen backsplash lighting and electrical renovation
You order kitchen backsplash lighting and new power outlets from us. The total project cost, including lighting, is €1,500, of which €600 is installation labor.
You receive a 35% household tax deduction:
€600 × 0.35 = €210
Deductible:
€210 − €150 = €60
This means you get €60 back from the installation costs.
Lighting installation in a detached house
You order lighting installations for an entire detached house under renovation. The installation cost for the project is €7,000.
You receive a 35% household tax deduction:
€7,000 × 0.35 = €2,450
Deductible:
€2,450 − €150 = €2,300
However, the maximum household tax deduction is €1,600 per person per year, so you can receive a maximum of €1,600 back from the installation costs.
When your personal maximum is exceeded, the remaining amount can be applied in the taxation of a spouse or registered partner living in the same household. The tax authorities will handle this automatically (or via the tax return) for the excess amount.
In this case, the spouse can claim the remaining deduction:
€2,300 − €1,600 − €150 (deductible) = €550
This means a total of €2,150 is returned from the labor costs of the renovation.
Which types of work are eligible for the household tax deduction?
A household tax deduction can be claimed for various maintenance and renovation works carried out in a home or holiday home. (Care services and household work are also eligible for the deduction.)
NOTE: New construction is not considered maintenance or renovation. Therefore, electrical work or construction related to a new detached house or an outbuilding does not qualify for the household tax deduction.
How do you apply for the household tax deduction?
The customer applies for the household tax deduction themselves, and the easiest way to do so is through the OmaVero online service. The application can be submitted as soon as the labor portion of the work has been paid.
