Deducting household services: Learn how to get your annual 20% tax reduction

Claims, Taxes & Finances
April 28, 2025

Deduct household-related services and tradespeople from your taxes: Here's how you can get up to 20% of your costs back.

Many people, when they think about tax deductibility, initially only think of traditional household help – if at all. Although provided for by law, this tax incentive is still underutilized and poorly communicated in Germany. In reality, a wide range of services in private households can be claimed as tax deductions: in addition to cleaning and everyday assistance, these include skilled trades services, moving help, carrying assistance, and certain care and support services.

Those who legally purchase and pay for services in their own home 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 of taxable income, but a direct tax credit according to § 35a of the German Income Tax Act (EStG).

This makes professional support in everyday life not only organizationally relieving, but also financially sensible.

What qualifies as a household-related service or craft service in the tax return?

German tax law essentially distinguishes between household-related services and skilled trades services. Both can be tax-deductible if they are performed in a private household.

Household-related services are defined as activities that typically arise in the daily life of a household. These include, for example, cleaning, regular housekeeping, childcare at home, or general daily support. Depending on the specific circumstances, IT support within the household, such as setting up a router or assistance with a home office, can also be claimed as a tax-deductible household-related service, provided there is a clear connection to the household.

Craftsman services, on the other hand, refer to repairs, renovations, or minor construction work in an apartment or house. Assembly work, minor installations, or repairs can also fall under this category.

Even support services related to a move – such as carrying assistance or organizational support – can be taken into account for tax purposes under certain conditions if they take place in a private household.

This makes it clear: Not only traditional household help is tax-deductible, but a wide range of household services. The decisive factor is not just the specific task, but especially its connection to your household.

How much is the tax reduction for household-related services?

For household-related services and skilled trades services, the tax office grants a tax reduction of up to 20 percent of the eligible expenses. This is a direct reduction of the 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 specific category (household-related services or skilled trades services) and is capped by law each year.

Especially with recurring services like cleaning or regular support, this advantage adds up noticeably over the course of the year. But even individual larger contracts with tradespeople can be relevant for tax purposes.

What conditions must be met in order to claim expenses for services as tax deductions?

For the tax office to recognize the costs, some basic conditions must be met:

  • A proper invoice : This must transparently show the service provided.
  • Electronic payment: Payment must be made electronically, for example by bank transfer. Cash payments are generally not accepted. The Helferei currently offers credit card payments or SEPA direct debit.
  • Service provision in private households : The decisive factors are therefore the place of performance and the private context.

Only if these formal criteria are met can you declare household-related services or craft services in your tax return and deduct them from your taxes.

Deducting household services from your taxes – why legality is crucial for the discount

Many people initially only compare prices when it comes to services. However, if a service is officially invoiced and tax-deductible, the effective effort is significantly reduced by the tax deduction.

Anyone who legally commissions cleaning, skilled trades services, carrying assistance or moving support not only receives transparency and security, but can also claim 20 percent of the costs as a tax deduction.

At the same time, this model enables fair, transparent and higher remuneration for helpers – because a potentially slightly higher official price is noticeably offset by the tax refund for customers.

It should be noted that illegal employment may appear cheaper in the short term, but it is neither a fair approach for the people doing the work nor tax-deductible.

How does tax deductibility work in the case of... Helferei in Berlin, Munich, Cologne and Leipzig?

At the Helferei All services – whether cleaning, household help, handyman services, moving assistance, carrying help, IT support, or care services – are organized transparently, documented with invoices, and processed electronically. And this applies in Berlin, Munich, Cologne, and Leipzig. Therefore, the formal requirements for tax deductibility are generally met in all these cities.

In the income tax return, household-related services and craft services are then specified in the relevant sections, specifically in the "Annex Household-Related Expenses" , separated into household-related services, household-related employment relationships or craft services.

The entry under "advertising expenses" is only relevant in specific professional situations; Section 35a of the German Income Tax Act (EStG) is generally the determining factor. If in doubt, an individual assessment by a tax advisor is recommended. Tax software can also be helpful in this regard.

This makes the process not only digital, but also tax-efficient.

Conclusion: More than just household help – many services are tax-deductible.

Not only traditional household help is tax-deductible. Services such as skilled tradespeople's work, cleaning services, moving assistance, carrying help, or certain care and support services can also qualify for tax benefits.

Those who book services on account and with electronic payment can deduct up to 20 percent of the costs directly from their tax liability. Deducting household-related services from taxes therefore not only means financial relief, but also legal certainty and fair working conditions.

This makes professional support in the household, for repairs or for moving a structured, transparent and tax-efficient solution.

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