The household tax deduction is a deduction granted in Finnish income taxation that applies to the labour costs of residential maintenance and renovation work. A roof renovation is one of the most common types of work qualifying for the household tax deduction, and the deduction can provide a significant saving on the total renovation costs. In 2026, the maximum household tax deduction is 2,250 euros per person per year. The deduction is 40 percent of the VAT-inclusive labour portion when the work is performed by a company registered in the prepayment register. The excess (self-contribution) is 100 euros per person. A couple can therefore receive up to 4,500 euros in deductions, corresponding to approximately 11,250 euros in labour costs. The household tax deduction applies specifically to the labour portion — material and supply costs cannot be deducted. In roof renovations, the labour portion is typically 40–60 percent of the total price, so the financial significance of the deduction is considerable. It is worth requesting an itemised invoice from the contractor showing labour and materials separately.
Which roofing work qualifies for the deduction?
The household tax deduction broadly covers roof maintenance and repair work. Work qualifying for the deduction includes roofing material replacement, underlayment replacement, installation or renewal of eaves gutters and downspouts, repair of penetrations, chimney flashings, installation of roof safety products, installation of heating cables and renewal of drainage systems.
A roof condition survey also qualifies for the household tax deduction, as do minor leak repairs and maintenance painting. In practice, all roofing work carried out by a qualified contractor on a residential building qualifies — the exception being work purely related to new construction.
An important limitation: the deduction cannot be claimed if other public support has been received for the same work, such as ARA renovation grants or energy grants. The deduction is also not granted for work on holiday homes unless the applicant lives there permanently. For work commissioned by a housing company, the deduction right is allocated to the shareholder based on the shareholder's payment share of the labour costs.
Calculating the deduction in practice
Calculating the household tax deduction for a roof renovation is straightforward. Assume a single-family house roof renovation has a total price of 25,000 € (VAT 25.5%). Of this, the labour portion is 50 percent, i.e. 12,500 €. The deduction is 40% × 12,500 € = 5,000 €, but the maximum deduction for one person is 2,250 €, so a person living alone can deduct 2,250 € – 100 € (excess) = 2,150 €.
A couple can both claim their own: 2 × (2,250 € – 100 €) = 4,300 €. This requires that both are owners of the property or holders of the right of occupancy. The deduction is made primarily from state income tax and appears directly as a reduced tax amount in the tax decision.
The contractor's invoice must separately show the labour portion, materials portion and value added tax. If there is no itemisation, the Tax Administration will not approve the deduction. Additionally, the invoice must state the work location (address) and timing. The contractor must be registered in the prepayment register — this can be checked in the YTJ service (Business Information System).
Application and practical tips
The household tax deduction is claimed in the taxpayer's own tax return. The deduction is declared for the tax year in which the work was paid — not the year the work was performed. If a roof renovation is completed in December 2026 but the final payment is made in January 2027, that instalment is deducted in the 2027 taxation.
The strategy for maximising the deduction in a large roof renovation is to split payment across two tax years. If the renovation labour cost is, for example, 15,000 €, it is worth paying the first instalment in December and the second in January, so the deduction is spread over two years and the maximum can be utilised in both years.
Documentation is important: keep all invoices and payment receipts for at least six years. Verify the contractor's prepayment register status before commissioning the work. Always request an itemised invoice. As a housing company shareholder, you receive a certificate from the housing company confirming your payment share of work qualifying for the household tax deduction — the housing company board must provide this information to shareholders at the end of the tax year.
Household tax deduction 2026 — changes and specifics
The 2026 household tax deduction largely follows the same rules as previous years, but a few updates should be noted. The maximum deduction is 2,250 euros per person, and 40 percent of the labour portion is deducted. The excess is 100 euros per person.
For renovations that improve energy efficiency, an enhanced household tax deduction may be available. Roof insulation upgrades or construction of an energy-efficient roof structure may qualify for the enhanced deduction of 60 percent of labour costs (maximum 3,500 €/person). This is worth clarifying with the contractor, as obtaining the enhancement requires the work to meet specific energy efficiency criteria.
The VAT rate increase to 25.5 percent affects renovation prices. The household tax deduction is calculated from the VAT-inclusive labour price, so a higher VAT rate slightly increases the euro amount of the deduction. In practice, however, the effect is small compared to the renovation cost itself. The most important thing is to remember to request an itemised invoice and verify the contractor's qualifications and registrations.
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Content reviewed and verified
Updated: April 2026
