Break down your tradesperson's invoice and estimate potential annual tax relief under §35a of Germany's Income Tax Act.
20% of eligible invoice costs, before annual and income-tax limits
| Date | Type of trade | Eligible | Allowable | |
|---|---|---|---|---|
| No invoices recorded yet. | ||||
Under §35a EStG, 20% of eligible labour costs, up to €1,200 per household per year, may reduce income tax. Separate documented invoice items and check the requirements. The tracker includes only payments you enter here and does not guarantee a refund.
Understand the invoice · check the annual limit
This tool shows a possible reduction under §35a(3) EStG. Whether you can use it depends on your documents, other household invoices and remaining income-tax liability.
Enter separately documented labour, machinery and travel costs. Materials are excluded. If the invoice does not separate labour, ask the provider for a corrected or additional breakdown. Do not estimate the labour share yourself.
Keep your invoice and payment proof. Renovation, maintenance and modernisation in an existing home in the EU/EEA may qualify. Cash payments do not. Subsidised work and costs already claimed elsewhere may be excluded.
The €1,200 cap applies per household per year, not per invoice or person. Include invoices outside this tracker. Relief belongs to the annual tax return, not your monthly take-home pay.
Worked example · amounts include VAT
An example invoice has €1,000 labour, €100 machinery, €50 travel and €800 materials.
Eligible costs1.150 €
20% of that230 €
Materials (excluded)800 €
€230 is the calculated amount before the annual household limit and your actual income-tax liability. No refund is guaranteed.
Net input converts all items using one shared VAT rate. If there are different rates, enter only documented gross amounts . Do not invent a blended VAT rate.
Renters and apartment owners may be able to claim documented eligible shares from service-charge statements or certificates. Evidence and the relevant tax year may differ from an invoice paid directly. This tracker does not calculate these special cases automatically.
Publicly subsidised work and costs claimed elsewhere can be restricted. Check each case separately. The cautious model rejects selected subsidy cases instead of assuming eligibility.
The tracker only knows invoices entered during this session. Earlier invoices, other household members and other tax reductions are not included. The remaining amount is therefore mathematical only.
Eligible work can reduce income tax by 20% of qualifying labour costs, up to €1,200 per household per year. The reduction applies only within legal and tax-liability limits; it is not a flat cash payout.
Materials are generally excluded. Documented labour, machinery and travel costs may count, including associated VAT. The split must be shown on the invoice or suitable certificate.
Ask the company for a corrected invoice or permitted additional breakdown. The invoice issuer may be able to provide an acceptable percentage split. You must not estimate the labour share yourself; the calculator uses €0 until there is evidence.
A bank transfer or traceable SEPA direct debit to the provider's bank account can meet the payment requirement. Keep your bank statement. Cash does not qualify.
In some cases, yes. Your share of eligible costs must appear in a statement or certificate. For annual statements, the tax year may differ from a directly paid invoice.
No. §35a is generally claimed through the annual income-tax return. Monthly take-home pay is unchanged. The tracker is not a calculation of your final tax notice.
The main sources are §35a EStG (German legislation) and the Federal Finance Ministry guidance, Annex 27b. The guidance covers invoice splits, payment proof and cases involving renters and apartment owners.
This tool covers the stated scope of §35a(3) EStG only. Household-related services under subsection 2, §35c and individual exceptions are not calculated separately. Indicative calculation. Not tax advice.
This simplified extra calculator is separate from the §35a result and does not cover every payroll situation. For more detailed inputs and explanations, use the Gross-to-Net Calculator. Check the children and long-term care insurance answers: the preselected values may not match your circumstances.
Monthly net pay (estimate)
—Illustrative addition only: 12 × estimated monthly net plus possible annual §35a reduction
—Not an annual income-tax assessment or payout guarantee. §35a does not change monthly take-home pay.
§35a applies through the annual tax return, not monthly pay. Separate labour, exclude materials, pay by bank. Maximum €1,200 per household/year. Indicative only · Not tax advice.