If you pay a company for plumbing work in your home, the household tax credit (kotitalousvähennys) covers part of the labour cost. For a large job such as renewing water pipes, it can be worth hundreds of euros; for a small job, possibly nothing. Here is how it works in 2026, based on the rules on vero.fi at the end of September 2026.
What the household tax credit is
The Finnish Tax Administration (Verohallinto) calls it the tax credit for household expenses. It is subtracted directly from the tax you would otherwise pay, not from your taxable income. It covers household work, care work, and maintenance and renovation work, which includes plumbing.
How much you get in 2026
For work bought from a company, the rules for 2026 are:
- 35% of the labour cost, including VAT (ALV)
- €150 threshold (omavastuu) per person per year, subtracted once from your total credit for the year
- €1,600 maximum per person per year
In short: labour cost × 35% − €150, up to €1,600.
Spouses can each claim the share of the bill they paid, and each has their own threshold and maximum. If one spouse's credit goes over the maximum, the Tax Administration automatically transfers the excess to the other spouse, whose own threshold is then subtracted from it.
Worked examples
The figures below are examples only, rounded to whole euros. They illustrate the calculation and are not price quotes. They assume the rule in force at the time of writing: 35% of labour, a €150 threshold and a €1,600 cap.
| Example | Labour incl. VAT | 35% | Credit after €150 |
|---|---|---|---|
| Small job, one person pays | €235 | €82 | €0 |
| Larger job, one person pays | €3,000 | €1,050 | €900 |
| €6,000 of labour, two spouses pay €3,000 each | €3,000 each | €1,050 each | €900 each, €1,800 in total |
In the first example, 35% of the labour cost is below the €150 threshold, so the job gives no credit on its own. It still counts towards the year's total if you have other deductible work, because the threshold is subtracted only once.
Had one spouse paid the whole €6,000 in the last example, the calculation would be €2,100 − €150 = €1,950, capped at €1,600. The excess €350 would transfer to the other spouse, leaving €200 after their own €150 threshold, so the total is the same €1,800 either way. For a small job, it usually pays for one spouse to pay the whole bill, because the threshold is then subtracted only once.
You can estimate your own case with the calculator on our prices page.
Conditions to check before you order the work
- The company must be in the prepayment register (ennakkoperintärekisteri). If it isn't, you get no credit; what counts is the situation when the contract is made. You can check a company by its business ID (Y-tunnus) at ytj.fi.
- The work must be done in a qualifying home: your own or rented home that you or your spouse live in, your holiday home, or your parents' or grandparents' home. According to vero.fi, parents cannot claim for work in their children's homes.
- Not in a flat you rent out. Renovation costs for a rented-out flat are handled in the taxation of rental income instead.
- Not in a new building. New construction does not qualify, and for a new detached house vero.fi also treats extra work done for the first time within two years of the final inspection as new construction.
- Not if you receive certain subsidies for the same work, such as a state renovation grant. Vero.fi lists the exceptions.
What counts in plumbing work
According to vero.fi, the credit covers maintenance and modernisation of water pipes and drains, kitchen and bathroom renovations, and upgrading or repairing a heating system, such as radiators and radiator pipework.
What does not count:
- Materials and devices: pipes, fittings, a new toilet, radiators or taps (faucets)
- Travel costs and travel time
- Installing a household appliance on its own, such as a dishwasher or washing machine. Appliance installation only counts as part of a larger renovation, for example when the whole kitchen is renovated.
Because only labour counts, ask for an invoice that shows labour separately from materials.
Housing company renovations
If you live in a flat owned through a housing company (taloyhtiö), renovations that the company carries out and finances through maintenance or financing charges (vastike) do not qualify. That usually includes a building-wide pipe renovation (putkiremontti). Nor does work that is the company's maintenance responsibility qualify if you pay for it yourself.
However, work that is your own responsibility can qualify, as can extra work you order and pay for yourself, such as upgrades to your own flat during a pipe renovation. According to vero.fi, you must agree on the work directly with the contractor and pay the invoice directly to them, not through the housing company. Details vary, so check vero.fi's page on housing companies. Work in your flat may also need a renovation notice.
How to claim the credit
You claim it in MyTax (OmaVero), in one of two ways:
- During the year: apply for a new tax card and enter the expected labour costs. Your withholding rate is lowered for the rest of the year.
- After the year: check your pre-completed tax return in spring and add or correct the household expenses.
The year in which you pay the invoice decides which tax year the credit belongs to. Keep the invoices and receipts, as the Tax Administration may ask to see them.
Proposed increase for 2026 and 2027
The government has proposed a temporary increase for 2026 and 2027: 40% of labour bought from a company, with a maximum of €2,100 per person per year. The €150 threshold would stay the same, and the change is intended to apply retroactively from the start of 2026.
At the time of writing, the proposal still needs parliamentary approval and is not in force. For example, €3,000 of labour would give €1,200 − €150 = €1,050 instead of €900. Check vero.fi for the current situation before you plan around it.
Summary
- In 2026 the credit is 35% of the labour cost including VAT, minus €150, up to €1,600 per person.
- Spouses each have their own threshold and maximum.
- Only labour counts, and the company must be in the prepayment register.
- Small jobs rarely give a credit on their own; larger jobs you order and pay for yourself often do.
- A proposed increase to 40% and €2,100 is pending, so check vero.fi.
Planning a bigger job? See water pipe replacement and radiator pipework renewal, try the calculator on our prices page, or contact us to discuss the work.