Tax Deductions for Household Services in Germany: Save Up to €5,710

Did you know that you can deduct a large portion of your spending on household help, childcare or gardening directly from your tax bill? Many people leave money on the table every year because they don't know about the tax credit for household services — or use it incorrectly. In this article, you'll learn exactly which services qualify, how much you can save, and what changed in 2025 that you absolutely need to know about.

What Are Household Services (Haushaltsnahe Dienstleistungen)?

Household services are tasks that would normally be done by household members but are outsourced to external service providers. This is regulated in § 35a of the German Income Tax Act. The key requirement: the work must take place in your home or on your property — and it must be domestic in nature.

Typical examples include:

• Cleaning and household help — Window cleaning, mopping, tidying up, laundry and ironing
• Garden maintenance — Mowing, hedge trimming, leaf removal, flowerbed care
• Childcare — Babysitting at home, homework help, care by childminders in your apartment
• Senior care and nursing — Daily companionship, outpatient care services, support services
• Pet care — Dog walking, cat sitting (when provided in your household)
• Winter services and street cleaning — Snow removal, gritting sidewalks
• Moving help — Carrying, packing, loading and unloading (labor costs only)
• Caretaker services — Minor repairs, building maintenance, waste disposal

Tasks performed outside your home don't qualify. If you drop your laundry off at a dry cleaner, that's not deductible. Tutoring and music lessons also don't count — even if they take place at your home.

Distinction from Craftsman Services

Craftsman services (Handwerkerleistungen) are a separate category with their own limits. The difference: craftsmen perform renovation, maintenance or modernization work. A cleaner provides a household service, a painter provides a craftsman service. The good news: you can use both tax benefits simultaneously.

How Much Money You Can Get Back

The tax credit works simply: the tax office deducts 20 percent of your expenses directly from your income tax. Not from your taxable income, but directly from the tax itself — that's an important distinction that makes a much bigger impact.

Here are the specific limits for 2026:

Type of Service	Deductible	Max. Tax Credit per Year
Mini-job in private household	20% of costs	€510
Household services	20% of costs (max. €20,000 expenses)	€4,000
Craftsman services	20% of costs (max. €6,000 expenses)	€1,200
Total possible		up to €5,710

A calculation example: You pay your household helper €200 per month — that's €2,400 per year. You get 20 percent back, meaning €480 deducted directly from your tax bill. Add a gardener at €1,200 per year, that's another €240 in savings. And if you also hire a painter for €3,000 in labor costs, you save another €600 through the craftsman deduction. Total: €1,320 less in taxes.

Tip: The limits apply per household, not per person. If you live with a partner, you can only use the amounts once — regardless of whether you file jointly or separately.

New Rule Since 2025: Cash Payments Are Out

Since the 2025 tax year, a stricter rule applies that continues in 2026: you must make every payment via bank transfer or card payment. Cash payments are consistently rejected by the tax office — including for care and nursing services, where exceptions existed until 2024.

This means specifically:

1. Request an invoice — Always get a written invoice before paying
2. Bank transfer or card payment — Never pay cash, even for small amounts
3. Keep bank statements — They serve as proof of payment for the tax office
4. Check invoice details — Name, address, type of service and time period must be included

The background: the government wants to curb undeclared work. Anyone who pays cash loses the entire tax deduction — even with a proper invoice. No exceptions, no discretion.

Exception for mini-jobs: For registered mini-jobs in private households through the Minijob-Zentrale, cash payment of wages is still permitted. The household check serves as proof.

Step by Step: How to Claim the Costs on Your Tax Return

You don't need a tax advisor to claim household services. Follow these five steps:

1. Collect invoices — Make sure labor costs and material costs are listed separately. Only labor costs (including travel costs and VAT) are deductible. Material costs like cleaning supplies, paint or plants don't count.

2. Pay electronically and document it — Transfer the invoice amount or pay by card. Keep bank statements for at least four years.

3. Check your utility bill — Tenants benefit too. Your utility bill (Nebenkostenabrechnung) often includes items for caretaker services, stairwell cleaning or winter services. Ask your landlord for a certificate with the itemized amounts.

4. Fill out the household expenses form — In your tax return, enter costs in line 5 of the Anlage Haushaltsnahe Aufwendungen. In ELSTER, find it under "Other information and applications." Craftsman services go in line 6.

5. Keep receipts — You don't need to submit invoices and bank statements with your tax return, but you must be able to present them if the tax office asks.

Tip for tenants: If your utility bill isn't detailed enough, you have the right to request a separate certificate from your landlord. Many property management companies now include these amounts automatically.

Special Case: Mini-Job in a Private Household

If you regularly employ someone as household help, a registered mini-job is worthwhile. The earnings limit in 2026 is €603 per month. The minimum wage is €13.90 per hour — at maximum utilization, that's about 43 hours of work per month.

Why registering pays off:

• Tax credit: 20% of total costs (wages + flat-rate contributions), up to €510 per year
• Accident insurance: Your household helper is covered for work accidents
• Pension insurance: Contributions build pension entitlements
• Legal security: No risk of penalties for undeclared work — fines can reach €5,000
• Easy registration: Done in minutes via the household check at the Minijob-Zentrale

The flat-rate contributions for you as an employer amount to about 14.94% of wages. You can claim these costs entirely as household expenses. Contributions are collected semi-annually via SEPA direct debit — in January and July.

Check out our detailed guide on the Minijob-Zentrale and household jobs for all registration details.

The 5 Most Common Mistakes — And How to Avoid Them

Claiming material costs. The tax office only recognizes labor costs, travel costs and machine costs. If your gardener charges €500 for work and €200 for plants, only the €500 is deductible. Make sure the invoice lists these items separately.

Paying cash and still trying to claim. Since 2025, the rule is absolute: no bank statement, no tax deduction. Even with a perfect invoice — anyone who pays cash gets nothing. The only exception is registered mini-jobs through the Minijob-Zentrale.

Claiming costs in the wrong year. The cash basis principle applies: what matters is when you paid, not when the service was provided. A December invoice that you transfer in January belongs in the new tax year.

Entering total costs instead of labor costs only. Many people enter the complete invoice amount. The tax office checks carefully and reduces the amount by material costs. In the worst case, the entire deduction is rejected if the invoice isn't itemized.

Forgetting the utility bill. As a tenant, you're leaving money on the table if you don't claim the household-related portions of your utility costs. Stairwell cleaning, caretaker, winter service, garden maintenance — these quickly add up to several hundred euros in deductible costs.

Care and Nursing Costs: Especially High Savings Potential

In the area of nursing and senior care, amounts can be particularly high. Outpatient nursing services, daily companionship or hourly senior care — all of this falls under household services, as long as the service is provided in your home.

Especially relevant for family caregivers:

• The relief benefit (Entlastungsbetrag) of €131 per month (care levels 1-5) can be used for recognized daily helpers
• Co-payments for outpatient care not covered by the care insurance fund can be deducted as household services
• Costs for respite care (Verhinderungspflege) — when someone steps in so you as a family caregiver can take a break — are also deductible
• Costs for nursing home accommodation are partially deductible, insofar as they relate to domestic services (cleaning, laundry, meals)

Anyone looking for professional care or daily assistance for family members can find suitable service providers nearby on Helpful Folks.

Conclusion

Deducting household services from your taxes isn't complicated — you need proper invoices and must pay by bank transfer. With up to €5,710 in potential tax savings per year, it's worth collecting all receipts and entering them in your tax return. Whether it's household help, gardening, childcare or senior care: anyone who uses help should take advantage of the tax benefit. On Helpful Folks you can find service providers near you — and every invoice you receive is tax-deductible. Register for free now and find the right helpers.