Who can claim funeral expenses on their tax return?
The costs for a funeral – such as for the ceremony, death notice, certificate, or grave – can be deducted as exceptional expenses under § 33 EStG under certain conditions.
Conditions for tax deduction
A tax deduction is only possible if:
- there is a legal obligation to cover the costs (e.g. as an heir or maintenance debtor) or
- the costs are covered for moral reasons (e.g. by children for their parents)
Additionally, the following must apply:
- the deceased's estate is insufficient to cover the costs
- the expenses are for a reasonable, customary funeral
- Invoices and payment receipts are available
When no deduction is possible
- if the estate is higher than the funeral costs
- if a funeral benefit insurance was paid out that covers the costs
- if it concerns your own funeral arrangements
Special case: Funeral benefit from taxed income
If the funeral benefit has been taxed, it does not reduce the deductible funeral costs. The Federal Fiscal Court justifies this with the prohibition of double taxation.
BFH decision of 15.06.2023 (VI R 33/20): Taxed funeral benefit does not reduce exceptional expenses.
Not deductible: Own funeral arrangements
Expenses for your own funeral arrangements – e.g. by taking out a pre-need contract – are not deductible as exceptional expenses.
Finance Court Münster, judgement of 23.06.2025 (10 K 1483/24 E)
Important: Reasonable personal burden
Even if the conditions are met, the expenses are only considered for tax purposes above the reasonable personal burden. This depends on income, marital status, and number of children.
Who can claim funeral expenses on their tax return?
Can I claim funeral expenses in an unlimited amount?
No, the tax office only recognises funeral expenses as extraordinary burdens up to a “reasonable amount”.
Since 2003, a reasonableness limit of 7.500 Euro has been used as a guideline. This means:
- Higher costs can be submitted,
- but are only considered up to the limit – except in justified exceptional cases.
Deduction only if the estate is insufficient
Funeral expenses are only deductible if:
- the deceased's estate is insufficient to cover the costs,
- no death benefit insurance or other earmarked benefits cover the costs.
In these cases, the proven costs – minus the reasonable personal burden – are considered extraordinary burdens according to § 33 EStG.
Special case: Taxed death benefit
If an taxed death benefit is paid to the heir, this does not reduce the deductible funeral costs.
BFH decision of 15.06.2023 (VI R 33/20): Taxable death benefit must not reduce deductibility to avoid double taxation.
Tip: Even if your funeral expenses exceed 7,500 Euro, you should fully document and submit them. In special cases – such as repatriation from abroad or religiously motivated additional expenses – the tax office may also recognise higher amounts.
Can I claim funeral expenses in an unlimited amount?
Which costs are tax-deductible in the event of a death?
Deductible funeral expenses include costs for:
- Doctor's fees for post-mortem examination
- Flowers (e.g. decoration of the mourning hall, arrangements, grave decorations, wreaths, bouquets as grave offerings)
- Funeral directors (e.g. handling all formalities, dressing, laying out, bedding, hygienic care, organisation)
- Funeral stationery (e.g. obituaries in daily newspapers, club newsletters, etc., letters, cards and thank-you notes)
- Travel expenses (e.g. journeys, funeral, funeral directors, handling formalities)
- Cemetery administration (e.g. fees for burial, funeral service, grave site usage fee)
- Fees (e.g. death certificate, obtaining documents for registration)
- Grave maintenance
- Grave site, grave cross, grave (memorial), gravestone (e.g. costs for erection, edging, initial planting, gravestone inscription, stonemason, border)
- Musical arrangement of the funeral service by organists or other musicians
- Postage (e.g. for obituaries, thank-you notes and correspondence)
- Coffin for burial or cremation (with coffin fittings)
- Pallbearers
- Interest on debts (for loan to pay funeral expenses)
- Shroud
- Funeral service (only expenses for organisation, invitations, etc.)
- Funeral orator
- Transport
- Decorative urns
Which costs are tax-deductible in the event of a death?
Which funeral expenses are not recognised by the tax office?
The tax office does not recognise certain costs related to a funeral as extraordinary expenses under section 33 (1) EStG. These include, in particular:
- Catering costs for funeral guests (e.g. funeral meal)
- Purchase of mourning clothes for the funeral or mourning period
- Travel expenses for relatives to attend the funeral
These expenses are considered general living expenses and are not tax-deductible.
No recognition of funeral provision expenses
Expenses for your own funeral provision – for example, by taking out a provision contract – are not deductible as extraordinary expenses.
This was decided by the Fiscal Court of Münster in its judgement of 23.06.2025 (Ref. 10 K 1483/24 E).
Which funeral expenses are not recognised by the tax office?
