Household Services 2026: Deduct 20% in Germany

The cleaner, the gardener, the winter service — help at home costs money, but a good part of it comes back via tax. 20% of the labour costs, directly off your tax. This guide shows what counts, where the limit is, and why even tenants benefit via the utility statement.

In short: Household services bring 20% of labour costs, max €4,000/year (§35a(2) EStG) — deducted directly from tax, not just from income. Only labour, travel and machine costs are deductible, not materials. Required: invoice + cashless payment. Tenants benefit too via the utility statement.

What counts as a household service

Favoured are activities usually done by household members — but carried out by an external person or firm in the home:

• Cleaning (cleaner, window cleaner, stairwell)
• Garden (mowing, hedge trimming, garden care)
• Winter service and path clearing
• Caretaker service
• Care and support in your own home (including of relatives)
• Moving costs (where not work-related)

Distinct from these are tradesperson services (renovating, repairing) — those fall under §35a(3) with a separate limit of €1,200. More in Deducting tradesperson services (§35a).

The key rules

• 20% of labour costs, at most €4,000 per year.
• Only labour costs — wages, travel, machine/consumable costs. Materials don’t count.
• Direct tax reduction — the 20% reduce your tax bill directly, not just taxable income.
• Invoice + transfer — cash payment is not recognised.

Tenants benefit via utility costs

Even if you rent, your utility statement contains favoured items: stairwell cleaning, gardening, caretaker, winter service. You deduct the labour-cost share they contain — you need a certificate from the landlord or property manager. How to read your utility statement for this is in Property tax on your utility bill.

Worked example

The Klein family employ a cleaner in 2026 (invoiced, paid by transfer) and have the garden maintained.

• Cleaner: €1,800 labour costs
• Garden care: €700 labour costs (excluding plant materials)
• Total labour costs: €2,500
• Tax reduction: 20% × €2,500 = €500 directly off tax

The €4,000 limit is far away — so there’s plenty of room here.

Common mistakes

1. Paying cash. The classic — no transfer, no deduction.
2. Trying to deduct materials. Only labour counts; the invoice must separate them.
3. Mixing with tradesperson services. Two different pots, two limits.
4. Tenants ignoring utility costs. There’s almost always a deductible share in there.

For caring for relatives, also read Deducting care for relatives.

How Restio helps

Which item belongs in which pot, and whether the payment method fits — that’s exactly where most deductions are lost. Restio watches out:

• Check receipts — photograph invoices; Restio recognises the favoured labour-cost share and assigns it correctly to §35a.
• Read utility costs — upload your utility statement; Restio flags the household-related items.
• Instant answers — ask in English or German: “Can I deduct my cleaner?” or “Does garden care count as household-related or as a tradesperson?”

For special cases (mixed invoices, care level), a tax advisor helps — Restio makes sure you give away no labour-cost share.

Household services are one of the few items deducted directly from tax — and worth a lot at a €4,000 ceiling. Those who transfer, separate the invoice and also check utility costs get several hundred euros back year after year. The legal basis is in §35a EStG.