Who can claim funeral expenses on their tax return?
The costs for a funeral – such as for the ceremony, death notice, certificate, or grave – can be deducted as exceptional expenses under § 33 EStG under certain conditions.
Conditions for tax deduction
A tax deduction is only possible if:
- there is a legal obligation to cover the costs (e.g. as an heir or maintenance debtor) or
- the costs are covered for moral reasons (e.g. by children for their parents)
Additionally, the following must apply:
- the deceased's estate is insufficient to cover the costs
- the expenses are for a reasonable, customary funeral
- Invoices and payment receipts are available
When no deduction is possible
- if the estate is higher than the funeral costs
- if a funeral benefit insurance was paid out that covers the costs
- if it concerns your own funeral arrangements
Special case: Funeral benefit from taxed income
If the funeral benefit has been taxed, it does not reduce the deductible funeral costs. The Federal Fiscal Court justifies this with the prohibition of double taxation.
BFH decision of 15.06.2023 (VI R 33/20): Taxed funeral benefit does not reduce exceptional expenses.
Not deductible: Own funeral arrangements
Expenses for your own funeral arrangements – e.g. by taking out a pre-need contract – are not deductible as exceptional expenses.
Finance Court Münster, judgement of 23.06.2025 (10 K 1483/24 E)
Important: Reasonable personal burden
Even if the conditions are met, the expenses are only considered for tax purposes above the reasonable personal burden. This depends on income, marital status, and number of children.
