Caution: Household services cannot always be deducted

Costs that you have already declared as income-related expenses, business expenses, special expenses, or extraordinary expenses in your tax return cannot also be deducted as household-related services.

You cannot choose how to deduct the costs. If the costs are considered income-related expenses or special expenses, they must be declared as such, the same applies to extraordinary expenses. This applies, for example, to childcare costs, which cannot be deducted as household-related services, even if the maximum amount for childcare costs has already been exceeded.

Also, personal services, such as for a hairdresser or cosmetic treatment, are not considered household-related services, even if they take place in your home.

Services listed in the care insurance service catalogue can, however, be declared.

However, work that is not carried out in your private household is not eligible, for example, if you take your laundry to a cleaning service.

Craftsmen's services for which you receive insurance benefits after a claim (e.g. household or building insurance) cannot be claimed in the tax return. Insurance benefits that you will receive later must also be included.

There is also no tax deduction for household-related services that do not take place in your private household. This includes, for example, the cleaning of an off-site office, a second home, or your company. Such expenses are considered business expenses or income-related expenses. However, costs for a cleaning service that works both in a home office and in your private home can be apportioned pro rata. The business part is considered business expenses or income-related expenses, the private part as household-related services.

If household-related services are carried out both on private property and on public land, this activity is fully tax-privileged according to a BFH ruling. This applies, for example, to snow clearing on public pavements, but not on public roads. The costs for winter services in front of your own property are therefore deductible at 20 percent from the tax liability (BFH ruling of 20.03.2014, VI R 55/12).

However, in 2020, the BFH ruled that expenses for street cleaning in front of the property are not tax-privileged as household-related services according to § 35a para. 2 sentence 1 EStG (BFH ruling of 13.05.2020, VI R 4/18).

Recently, the Federal Ministry of Finance published the following overview regarding the BFH's case law (BMF letter of 01.09.2021, IV C 8 - S 2296-b/21/10002 :001):

Furthermore, the BMF stipulates: For craftsmen's services provided by public authorities that benefit not only individual households but all households involved in the public measures, a benefit under § 35a EStG is excluded. In this respect, there is no spatial-functional connection between the craftsmen's services and the household of the individual property owner. This applies, for example, to the expansion of the general supply network or the development of a road. This position corresponds to the BFH ruling of 28.04.2020 (VI R 50/17).

Caution: Household services cannot always be deducted

Can I, as a tenant, also benefit from the tax reduction for household-related services and tradesmen's services?

Yes. You do not need to be the owner of the flat to claim certain costs for tax purposes.

Tax benefit also possible for tenants

As a tenant, you can also claim the tax reduction under § 35a EStG. This applies to household-related services and tradesmen's services, even if the landlord was the client. The key factor is that you have paid the costs through the service charges.

These service charges are deductible

Many items from your service charge statement can be classified as household-related services or tradesmen's services, e.g.:

• Garden maintenance
• House cleaning
• Janitor services
• Chimney sweep
• Lift maintenance

Requirement: Certificate from the landlord

To claim these costs with the tax office, you need a certificate from the landlord. A normal service charge statement is usually not sufficient.

However, you have a legal right to this certificate. The basis is § 35a EStG in conjunction with Appendix 2 of the BMF letter dated 09.11.2016.

Tax benefit also for services commissioned by yourself

If you, as a tenant, commission a tradesman or domestic help yourself (e.g. window cleaner or painter), you can also deduct these expenses – regardless of the service charge statement. However, the work must take place in your flat.

Case law confirms tenant's entitlement

In a ruling dated 20.04.2023 (VI R 24/20), the Federal Fiscal Court (BFH) decided that tenants are entitled to a tax reduction even if they were not the client of the service.

What to do if there are problems with the landlord?

If the landlord does not issue the certificate or requests additional documents, you can refer to your right to inspect documents under § 259 para. 1 BGB.

According to the Federal Court of Justice (BGH), you may:

• inspect the documents,
• photograph them,
• scan them, or
• copy them.

For price-controlled housing, § 29 para. 2 sentence 1 of the Calculation Regulation even allows you to request copies against reimbursement of costs (BGH ruling of 08.03.2006, VIII ZR 78/05).

Can I, as a tenant, also benefit from the tax reduction for household-related services and tradesmen's services?

What are the conditions for household tax reductions?

Requirements for household tax reductions

To qualify for tax recognition of household services and tradesmen's services, the following conditions must be met:

1. The service must have been provided in the taxpayer's household

Only activities carried out within the home or property are eligible for tax benefits. The following are not eligible:

• Care services in a day care facility
• Repairs of household appliances in the service provider's workshop
• Waste collection – the actual disposal takes place outside the household

Note: Emptying the bins is considered an ancillary service. The main service is disposal. (FG Köln, 26.01.2011, 4 K 1483/10; FG Münster, 24.02.2022, 6 K 1946/21 E)

2. The household must be located in the EU or EEA

Only household services within the European Union or the European Economic Area are eligible for tax benefits.

3. Only one maximum amount per taxpayer

If there are multiple households (e.g. main residence and second home), the maximum amount for tax reductions can only be claimed once.

4. No double consideration

Expenses are not deductible if they have already been considered as:

• Business expenses
• Income-related expenses
• Special expenses
• Extraordinary burdens

for tax purposes.

Special feature for apartment owners

Owners of a self-used apartment can also benefit from the tax reduction if:

• the community or the administrator acts as the client
• the measure is handled via communal property

The tax benefit is granted proportionally according to co-ownership share.

Current case law: maintenance reserve

Payments into the maintenance reserve are not considered as income-related expenses in the year of payment. They are only deductible when the administrator actually uses the funds. (BFH ruling of 14 January 2025, IX R 19/24)

Waste collection fees: current situation

The costs for waste collection can currently not be deducted as a household service. Reason:

• The main service – disposal – takes place outside the household
• Collection is considered only a subordinate ancillary service

This view was confirmed by the Münster Finance Court. An appeal was rejected for procedural (not substantive) reasons.

What are the conditions for household tax reductions?

Which expenses are eligible?

Eligible expenses include gross wages or salary (for "mini-jobs") and the social security contributions paid by the employer, wage tax including the solidarity surcharge and church tax, accident insurance contributions, and levies under the Expense Reimbursement Act (U 1 and U 2).

Which expenses are eligible?

What evidence is required for tax reduction under section 35a of the Income Tax Act?

To claim the tax reduction under § 35a EStG (household services, craftsmen's services and care expenses), certain conditions and evidence must be met.

1. Invoices and proof of payment

The service provider must issue a proper invoice, with labour and material costs listed separately. Only labour, machine and travel costs, and the VAT on these, are eligible. Payment must be made by bank transfer; cash payments are not recognised.

2. Household services and care expenses

Household services include not only traditional tasks such as cleaning or gardening but also home care for people in need of care. Since 2009, no proof of the care level is required.

3. Missing service charge statement

If you have not yet received the service charge statement for the current tax year, you can submit the previous year's statement. The year the statement is received counts.

4. Court rulings on care costs

BFH ruling of 3 April 2019 (residential care not deductible, ref.: VI R 19/17)

The Federal Fiscal Court ruled in 2019 that only costs for one's own care or accommodation in a home are deductible. If children cover the costs for their parents' residential care, this is not tax-deductible.

Ruling of the Berlin-Brandenburg Fiscal Court of 11 December 2019 (outpatient care deductible, ref.: 3 K 3210/19)

The Berlin-Brandenburg Fiscal Court ruled that costs for outpatient care of relatives are deductible if the care takes place in the taxpayer's household.

BFH ruling of 12 April 2022 (outpatient care deductible, residential care still not deductible, ref.: VI R 2/20)

The BFH ruled in 2022 that outpatient care in the parents' household is also deductible if the child is contractually obliged. Costs for residential care remain non-deductible for tax purposes.

What evidence is required for tax reduction under section 35a of the Income Tax Act?

What are household-related services?

Household-related service is a term from income tax law. The expenses for such a service can lead to a tax reduction. The legal basis can be found in § 35a EStG.

A distinction is made between household-related employment, household-related services, and tradesmen's services.

Depending on the classification of the service, different maximum amounts apply for consideration.

Household-related employment

Household-related employment exists when a person not belonging to the household carries out an activity in a private household that would usually be done by household members, such as shopping, cooking, baking, sewing, washing, cleaning, caring for children and the elderly, gardening.

Social security employment in a private household always exists if

• the wages from the employment exceed 556 Euro per month, or
• several mini-jobs together exceed the limit of 556 Euro per month.

Activities as a chauffeur, secretary, or companion are not eligible.

Household-related services

Household-related services must have been carried out by a self-employed service provider or a service agency. Eligible services include, for example:

• cleaning the apartment, cleaning windows, cleaning the stairwell and other communal areas,
• garden maintenance (e.g. mowing the lawn, trimming hedges),
• services for moves by private individuals (minus reimbursements from third parties).

Tradesmen's services

As part of tradesmen's services, all expenses for renovation, maintenance, and modernisation measures for the home used for own residential purposes (condominium, house, rented apartment) are eligible. These include, for example:

• work on interior and exterior walls,
• work on the roof, facade, garages, etc.,
• repairs or replacement work on windows and doors,
• painting, repairs, and replacement work on doors, windows (inside and outside), fitted cupboards, fitted kitchens, radiators and pipes,
• repairs and replacement work on floor coverings (e.g. carpet, parquet, tiles),
• repairs, maintenance, or replacement work on heating systems, electrical, gas, and water installations by electricians and plumbers,
• modernisation work in the bathroom,
• repairs and maintenance work on items in the taxpayer's household (e.g. washing machine, dishwasher, cooker, television, personal computer),
• garden design measures (e.g. paving work, new garden layout),
• paving work on the residential property,
• inspection work (e.g. chimney sweep, lightning protection, fire extinguishers and alarms).

What are household-related services?

How much tax can I save through household-related services and tradesmen's bills?

Depending on the type of employment and work, household-related services are subsidised differently in the tax return. The expenses can be taken into account for tax reduction as follows, depending on their type:

20 percent, maximum 510 Euro

• for domestic help in marginal employment (mini-job),

20 percent, maximum 4.000 Euro

• for domestic help in employment subject to social insurance,
• for care and support services (also in nursing homes)
• for household-related services in self-employment.

20 percent, maximum 1.200 Euro

• for craftsmen's services, but only wages and travel costs plus VAT, not material costs.

Your expenses for domestic help, household-related services and craftsmen's services are deducted directly from the tax liability at 20 percent.

If you pay no or very little income tax, unfortunately you have no possibility of a tax reduction through household-related services or craftsmen's services.

The maximum amounts for the individual services are not reduced pro rata if the service is not provided for the whole year. For example, if you employed a cleaner for only a few months of the year, the wages paid will still be deducted from the tax liability at 20 percent, up to the maximum amount.

On the other hand, you cannot claim the expenses for household-related services more than once. Exception: You share the cost of caring for a person with others. However, you cannot claim double the maximum amount for two cleaners, even if you have multiple households in different homes.

The tax office counts multiple households in different homes as one household. If you and your spouse choose individual assessment, each partner is entitled to half the maximum amount for the respective household-related service. However, you can also apply for a different proportional allocation. Even if you are unmarried and living together, you can only claim half the maximum amount for yourself. In total, the maximum amount for the tax deduction is therefore only available once per household.

Mr Schmitt has his house renovated 2025 (cost: 6.000 Euro incl. VAT), employs a cleaner in marginal employment (4.800 Euro) and has a gardener (1.200 Euro incl. VAT) as well as a care service for his mother, who lives with him in the household (4.000 Euro incl. VAT). Through these expenses, Mr Schmitt saves income tax as follows:

• Deduction for renovation (20 percent of 6.000 Euro, max. 1.200 Euro): 1.200 Euro
• Deduction for cleaner (20 percent of 4.800 Euro, max. 510 Euro): + 510 Euro
• Deduction for gardener and care service (20 percent of 5.200 Euro, max. 4.000 Euro): + 1.040 Euro

Total tax deduction 2.750 Euro

This amount is deducted from the income tax. Mr Schmitt may receive a refund from the tax office if his pre-paid wage or income tax is higher.

How much tax can I save through household-related services and tradesmen's bills?

Can I also claim tax relief for assisting a person in need of care?

Tax reduction for care in the household (§ 35a EStG)

For the care of a person in your household, you can deduct 20% of the costs, up to a maximum of 4.000 Euro, directly from your tax (§ 35a EStG). This applies to the care of yourself or your spouse – but not for relatives who do not live in your household (BFH ruling of 03.04.2019, VI R 19/17).

Eligible services include basic care and support (e.g. personal hygiene, nutrition, mobility). Household-related services such as hairdressing or foot care are also deductible if they are included in the care insurance service catalogue. The key factor is that the care takes place in the household of the carer or the person being cared for – even in a nursing home. The tax reduction is household-based, so it is granted only once per household.

Care allowance or actual costs?

It may be worthwhile to claim the actual costs instead of the care allowance – especially if 20% of these costs exceed the allowance. Up to 4.000 Euro per year can be directly deducted from tax.

The care allowances:

• Care level 2: 600 Euro
• Care level 3: 1.100 Euro
• Care level 4, 5 or helplessness: 1.800 Euro

The allowance can only be claimed if the person in need of care cannot cover the care costs themselves.

Deductibility for care of relatives

According to previous case law, care costs for relatives were only deductible if they lived in the same household. This has changed due to a BFH ruling (12.04.2022, VI R 2/20): Even if children finance the outpatient care of their parents in the parents' household, they can deduct the costs – under the following conditions:

• It is outpatient care,
• The care contract was concluded by the payer (e.g. child) and obliges them personally to pay.

No deductibility for residential care

For residential care costs (e.g. nursing home accommodation), the following still applies: There is no tax deductibility if the children cover the costs for their parents. The BFH does not recognise this as an expense of their own (BFH ruling of 03.04.2019, VI R 19/17).

Can I also claim tax relief for assisting a person in need of care?