Household deduction for renovation 2026: how much you get and how to claim

How much deduction you get in 2026

According to the Finnish Tax Administration (updated 13.10.2026), the household expense deduction has been raised for 2026 and 2027. For work bought from a company, the deduction is 40 % of the VAT-inclusive labour share. If you hire the worker yourself, the deduction is 15 % of the wages and the employer's side costs.

The maximum is 2 100 € per person per year, and it is reached when the labour share is 5 625 €. The deductible is 150 € per person per year and is deducted only once a year. For work related to giving up oil heating the deduction is 60 % and the maximum 3 500 € until the end of 2027.

Spouses can each receive the deduction, so the couple's combined maximum is 4,200 euros. An unused deduction cannot be carried forward to later years.

Increase 2026–2027: 40% and 2,100 euros

The household deduction was raised temporarily for 2026 and 2027. The deduction percentage for work bought from companies rose from 35 to 40, the deduction for employed work from 13 to 15 per cent and the maximum from €1,600 to €2,100. The excess remained at €150.

The change is retroactive, so the increase applies to all work paid for in 2026, including invoices already paid early in the year (Finnish Tax Administration 13.10.2026).

Invoice example

Example: the labour share of a bathroom renovation is 8 000 euros. Under the 2026–2027 rules the deduction is 40 %, or 3 200 euros, of which 3 050 euros remains after the deductible. One person can receive a maximum of 2 100 euros of this, and the rest can be transferred to the spouse's taxation.

Under the rules in force before 2026 (35 %, at most 1 600 €), the deduction calculated from the same 8 000 € labour share would have been 2 800, € and 2 650 € after the deductible.

Terms: who does it and where

The deduction is available for work done in your own home or holiday home. The home can be owned or rented. The deduction can also be obtained for work done in the home of your own parents or grandparents. A landlord or a housing company cannot get the deduction.

The company doing the work must be in the prepayment register at the time the contract is made. You can check the registration free of charge in the YTJ service (ytj.fi) by company name or Business ID.

No deduction is allowed for supplies, your own work or work done by someone living in the same household. A public renovation grant, for example, also prevents the deduction. No deduction is allowed for work paid by an insurance company, but one can be obtained for the insurance excess if the other conditions are met.

If you have applied for a grant for the renovation, wait for the grant decision before claiming the household expenses deduction. You cannot receive both a grant and a deduction for the costs of the same work.

Check the prepayment register in YTJ before signing a contract.
Ask for the labour share itemised separately from materials on the invoice.
Pay the bill yourself and keep the bill and the proof of payment.
No deduction is allowed for a renovation financed with housing company charges.

How to claim the deduction

The household deduction is granted in the taxation of the year in which the invoice was paid. The deduction for 2026 therefore includes invoices you pay by 31.12.2026 at the latest. For instalment payments, the deduction is allocated to the payment year of each instalment.

If you already know during the renovation that you will receive a deduction, you can apply for a change to your tax card in OmaVero. The withholding then decreases immediately, and you do not have to wait for the deduction as a tax refund. The deduction is finally declared in the pre-filled tax return the following spring.

When you make the agreement, ask the company for a written quote that itemises the share of work and materials. That way you can calculate in advance how much deduction to expect and compare quotes. Pay the invoice from your own account and keep the invoice and proof of payment, as the Tax Administration may ask to see them.

Special situations for people living in a housing company

A shareholder cannot get the household tax credit for a renovation, such as a pipe renovation, that the housing company orders itself and finances with maintenance charges. If the shareholder nevertheless orders and pays for additional work themselves, for example tiling that is more expensive than standard, they may get the credit for the labour portion of that work.

In Renovation Radar you see the current household tax credit figures, the change in construction costs and important dates, such as the last payment date of the year by which an invoice still counts towards this year's deduction.

Frequently asked questions

Can you get the household tax credit for renovation supplies?

No. The deduction is calculated only on the labour share, so ask for the labour and materials to be itemised separately on the invoice.

Can you get a deduction for renovating your parents' home?

Yes. The deduction can be obtained for work done in the home of your own parents or grandparents. Parents, however, cannot receive the deduction for work done in their children's home.

Is the household deduction increase already in force?

Yes. According to the Finnish Tax Administration (updated 13.10.2026), the deduction in 2026 and 2027 is 40% of the labour share, up to €2,100 per person, and the deductible is €150. The increase applies retroactively to all work paid for in 2026.

When must the invoice be paid for the deduction to apply to 2026?

The deduction is granted in the taxation of the year of payment, so the invoice must be paid by 31.12.2026 at the latest.

Renovation Radar brings together the topic's figures, deadlines and services. Open Renovation Radar →

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Sources

The article is general information and does not replace the guidance of an authority, a lawyer or an adviser. Check up-to-date information from the sources.