Finnish household tax credit calculator 2026
Enter the labour share of your invoice and any wages you paid yourself to see the credit under current law and under the proposed increase.
Checked by Radif Partners · Editorial policy · Calculation method
In 2026 the Finnish household tax credit (kotitalousvähennys) is 35 % of the labour cost, VAT included, of work bought from a company, minus a €150 deductible, up to €1,600 per person per year: €3,000 of renovation labour gives you €900 off your taxes. If you employ someone directly, the credit is 13 % of wages plus employer contributions. You reach the cap with €5,000 of labour. The government has proposed a temporary increase for 2026 and 2027, to 40 % of labour, 15 % of wages and a €2,100 cap, with the deductible unchanged. As of 5 October 2026 it has not been passed; if it is, it will apply to costs paid from 1 January 2026, and the same €3,000 would give €1,050. The calculator shows both figures side by side. Spouses who pay for the work together each get their own credit, deductible and cap. The credit comes straight off your taxes, euro for euro, as long as you pay at least that much tax.
Household tax credit 2026
€900
Under the proposal €1,050: not yet law
| Labour × 35% | €1,050 |
|---|---|
| Deductible €150 per person | − €150 |
| Household credit (max €1,600 per person) | €900 |
| If the proposal passes (40%, max €2,100) | €1,050 |
The credit at different invoice sizes
The table shows the labour share including VAT and the credit under current law and under the proposal. In the spouse columns costs are split equally and each subtracts their own €150 deductible.
| Labour | One claimant | Proposal | Spouses | Spouses, proposal |
|---|---|---|---|---|
| €600 | €60 | €90 | €0 | €0 |
| €1,000 | €200 | €250 | €50 | €100 |
| €2,000 | €550 | €650 | €400 | €500 |
| €3,000 | €900 | €1,050 | €750 | €900 |
| €5,000 | €1,600 | €1,850 | €1,450 | €1,700 |
| €8,000 | €1,600 | €2,100 | €2,500 | €2,900 |
| €12,000 | €1,600 | €2,100 | €3,200 | €4,200 |
On small invoices, decide who pays: two deductibles eat more of the credit than one. On €1,000 of cleaning one claimant gets €200, but split down the middle the couple keeps only €50. On a big renovation it flips, because two claimants have two caps.
Vero’s own examples
The calculator matches the examples on Vero’s page: €600 of labour gives €60 (Vero: €60), and €8,000 gives one claimant the full €1,600. If you employ someone directly, the credit is based on wages and employer costs: €5,000 in total costs gives €500.
Example: a kitchen renovation
A contractor’s €12,000 invoice covers cabinets, appliances and labour. Only the labour counts, here €4,500 including VAT, so ask the company to itemise it. Paid by one person, the credit is €1,425; under the proposal it would be €1,650. Split between spouses it comes to €1,275.
Which work qualifies
- Household and care work at home, such as cleaning and care.
- Maintenance and renovation of your home: labour only, not materials or travel.
- Installing and advising on IT equipment at home.
- Replacing oil heating, at the higher 60% rate in 2025–2027.
The legal basis is sections 127 a–127 f of the Income Tax Act. The proposal is described in Vero’s press release; the same bill would cut the commuting own share to €800 (see the commuting deduction).
How the credit shows up in your taxes
The credit reduces tax, not taxable income. If it was not on your tax card, it comes back as a refund once your assessment is done. It only helps if you pay at least that much tax, so on a low income part of it can go unused. The tax refund calculator shows the effect on your refund, and tax refund and residual tax explains the rest.