When it comes to tax deductibility, many people initially only think of traditional domestic help—if they think of it at all. Although provided for by law, this tax incentive is still underutilized and undercommunicated in Germany. In fact, however, a wide range of services in private households can be taken into account for tax purposes: in addition to cleaning and everyday help, these also include craftsmen's services, moving assistance, carrying assistance, and certain care and support services.
Anyone who legally purchases services in their own household on account and pays electronically can, under certain conditions, deduct up to 20 percent of the costs directly from their tax liability. Important: This is not merely a reduction in taxable income, but a direct tax reduction in accordance with Section 35a of the German Income Tax Act (EStG).
This means that professional support in everyday life not only reduces the organizational burden, but also makes financial sense.
German tax law essentially distinguishes between household-related services and craftsmen's services. Both can be tax-privileged if they are provided in private households.
Household-related services are activities that typically arise in everyday household life. These include, for example, cleaning, regular domestic help, childcare in your own home, or everyday support. IT support in the household, such as setting up a router or helping with a home office, can also be claimed as a household-related service for tax purposes, depending on the individual case, provided that there is a clear connection to the household.
Craftsman services, on the other hand, relate to repairs, renovations, or minor construction work in the apartment or house. Assembly work, minor installations, or repairs may also fall under this category.
Self-supporting services related to a move—such as carrying assistance or organizational support—may be tax-deductible under certain conditions if they take place in a private household.
This makes it clear that not only traditional domestic help is tax-deductible, but also a wide range of household services. The decisive factor is therefore not only the specific activity, but also its connection to your household.
The tax office grants a tax reduction of up to 20 percent of eligible expenses for household-related services and craftsmen's services. This is a direct reduction in tax liability. This means that the amount is deducted directly from the calculated tax – not just from income. The maximum amount of the tax reduction depends on the respective category (household-related services or craftsman services) and is capped by law each year.
This advantage really adds up over the course of a year, especially for recurring services such as cleaning or regular support. However, individual larger tradesmen's jobs can also be relevant for tax purposes.
In order for the tax office to recognize the costs, a few basic conditions must be met:
Only if these formal criteria are met can you claim household-related services or tradesmen's services on your tax return and deduct them for tax purposes.
When it comes to services, many people initially only compare the price. However, if a service is officially invoiced and tax-deductible, the effective cost is significantly reduced by the tax reduction.
So anyone who legally commissions cleaning, handyman services, a baby carrier or moving assistance not only benefits from transparency and security, but can also claim 20 percent of the costs for tax purposes.
At the same time, this model enables fair, transparent, and higher remuneration for helpers—because a potentially slightly higher official price is significantly offset by the tax refund for customers.
It should be noted that illegal employment may appear to be more cost-effective in the short term, but it is neither fair to the people doing the work nor tax-deductible.
Helferei all services—whether cleaning, domestic help, handyman services, moving assistance, carrying assistance, IT support, or care services—in a transparent manner, documents them with invoices, and processes them electronically. And it does so in Berlin, Munich, Cologne, and Leipzig. This means that the formal requirements for tax consideration are fundamentally met in all cities.
In the income tax return, household-related services and craftsmen's services are then specified in the corresponding sections, specifically in the "Appendix: Household-related expenses," separated into household-related services, household-related employment relationships, or craftsmen's services.
The information under "advertising costs" is only relevant in specific professional situations; Section 35a of the German Income Tax Act (EStG) is generally decisive. In case of doubt, it is advisable to seek individual advice from a tax advisor. Tax software can also help here.
This makes processing not only digital, but also straightforward from a tax perspective.
It is not only traditional domestic help that is tax deductible. Craftsmen's services, cleaning services, moving assistance, carrying assistance, or certain care and support services may also be eligible for tax relief.
Those who book on account and pay electronically can deduct up to 20 percent of the costs directly from their tax liability. Tax deductions for household-related services therefore not only provide financial relief, but also legal certainty and fair working conditions.
This makes professional support in the household, with repairs, or when moving house a structured, organized, transparent, and tax-efficient solution.
