(2025)
What are the conditions for household tax reductions?
Requirements for household tax reductions
To qualify for tax recognition of household services and tradesmen's services, the following conditions must be met:
1. The service must have been provided in the taxpayer's household
Only activities carried out within the home or property are eligible for tax benefits. The following are not eligible:
- Care services in a day care facility
- Repairs of household appliances in the service provider's workshop
- Waste collection – the actual disposal takes place outside the household
Note: Emptying the bins is considered an ancillary service. The main service is disposal. (FG Köln, 26.01.2011, 4 K 1483/10; FG Münster, 24.02.2022, 6 K 1946/21 E)
2. The household must be located in the EU or EEA
Only household services within the European Union or the European Economic Area are eligible for tax benefits.
3. Only one maximum amount per taxpayer
If there are multiple households (e.g. main residence and second home), the maximum amount for tax reductions can only be claimed once.
4. No double consideration
Expenses are not deductible if they have already been considered as:
- Business expenses
- Income-related expenses
- Special expenses
- Extraordinary burdens
for tax purposes.
Special feature for apartment owners
Owners of a self-used apartment can also benefit from the tax reduction if:
- the community or the administrator acts as the client
- the measure is handled via communal property
The tax benefit is granted proportionally according to co-ownership share.
Current case law: maintenance reserve
Payments into the maintenance reserve are not considered as income-related expenses in the year of payment. They are only deductible when the administrator actually uses the funds. (BFH ruling of 14 January 2025, IX R 19/24)
Waste collection fees: current situation
The costs for waste collection can currently not be deducted as a household service. Reason:
- The main service – disposal – takes place outside the household
- Collection is considered only a subordinate ancillary service
This view was confirmed by the Münster Finance Court. An appeal was rejected for procedural (not substantive) reasons.
