Did you know that in Germany you can directly deduct 20% of your expenses for domestic help, cleaning, handymen and certain tradespeople's services from your income tax? Whether you regularly hire a cleaner, have your windows cleaned, or renovate your apartment: many services related to your home can reduce your tax burden.
But which costs can you actually deduct? Do the same rules apply to cleaning staff and handymen? And how much money do you really save in the end?
We'll explain step by step how it works – with simple calculations and instructions on where to enter your expenses in your tax return.
According to § 35a of the Income Tax Act (EStG), you can deduct 20% of the recognized costs for certain services in your private household directly from your income tax.
The tax office distinguishes between two areas:
These are tasks that you could normally do yourself in your household, but have someone else do them for you.
These include, for example:
This includes certain repairs, renovations, and modernizations in your home, for example:
Important: Different annual maximum amounts apply to each of the two areas:
For handymen or tradespeople, you can only deduct labor and travel costs, not materials. For a cleaning service, however, you can usually deduct 20% of the total invoice amount from your income tax.
The maximum amounts apply to your entire household and all related expenses combined, not to each individual bill.
The good news is: Yes! You can deduct cleaning costs and handyman services in the same tax year! The two categories have different maximum amounts. In total, you can save up to €5,200 in income tax per year – provided you have correspondingly high expenses and pay sufficient income tax.
Let's assume you earn €75,000 gross per year and spend €3,000 annually on a regular cleaning service .
Your invoice looks like this:
Unlike childcare expenses, the costs are not deducted from your taxable income. Instead, 20% of your cleaning costs are directly deducted from your income tax. What does that mean exactly?
Let's say the tax office determines after your tax return that you owe €2,000 in additional income tax. Since you spent €3,000 on your cleaning service, 20% of that amount, or €600, will be deducted directly from your tax. Therefore, instead of €2,000, you only have to pay €1,400.
And what if you don't have to pay any additional taxes, but instead receive a refund? Then your refund will be €600 higher due to the cleaning costs. In both cases, you've saved €600 in taxes, meaning that after the tax savings, you've effectively only spent €2,400 on your cleaning.
The crucial difference to tax deductibility for childcare: As long as you pay sufficient income tax and meet the legal requirements, your savings amount to 20% of your cleaning costs – regardless of your personal tax rate.
Let's say you also earn €75,000 gross per year and have your living room renovated. You receive the following invoice:
For services provided by tradespeople, the tax office only considers labor costs and certain related expenses, such as travel and equipment costs. Material costs like paint, tiles, or spare parts are not deductible.
€1,500 × 20% = €300 tax savings.
You would then have:
Therefore, make sure that labor and material costs are clearly separated on your tradesman's invoice.
In order for the tax office ("Finanzamt") to recognize your expenses, the following conditions must be met:
You can also deduct one-off cleaning and repair expenses from your taxes! So you don't need to employ regular household help or own your apartment.
At Helferei, you automatically receive an invoice for each completed order. Payment is processed electronically via our platform and, for hourly services, is based on the actual time spent.
Unlike the deductibility of babysitting or childcare, household-related services and skilled trades services are considered a tax credit. This means that the tax savings are deducted directly from your income tax, not from your income.
Therefore, two people with different incomes can save the same amount of taxes on the same expenses.
There is one limitation, however: Your income tax must be high enough. For example, if you only owe €300 in income tax, the tax credit would reduce it to a maximum of €0. The tax office will not pay you any amount exceeding this.
You enter your expenses in the "Annex for Household-Related Expenses" (Anlage für haushaltshabe Dienstleistungen) of your income tax return. This is a separate annex for the tax declaration file (ESt. 1 A). It has separate sections for household-related services and skilled trades services. Enter the actual, tax-deductible costs you paid in each case. The tax office will then calculate your tax savings of 20%, taking into account the respective maximum amounts.
Keep your invoices and proof of payment in case the tax office asks for them. At Helferei, you will find your invoices two days after completion of the order in your profile under "Documents".
Want to learn more about our services? On our service pages you'll find further information about domestic help and cleaning, window cleaning and handyman services , as well as answers to frequently asked questions about booking and payment.
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Note: This article explains the general tax regulations based on publicly available sources and does not replace individual tax advice.
