What is the average tax refund in Germany?

The average tax refund is around EUR 1,063. Employees with commuter allowance, home office costs and work-related expenses above the flat rate of EUR 1,230 often receive significantly more.

Is it worth filing a tax return?

In most cases, yes. As soon as your work-related expenses exceed the flat rate of EUR 1,230, you get money back. Commuters, home office workers and parents almost always benefit.

What is the commuter allowance and how is it calculated?

The commuter allowance is EUR 0.30 per kilometer for the first 20 km and EUR 0.38 from the 21st kilometer (one-way distance). It applies for each working day, regardless of transport mode. At 25 km and 220 working days, this amounts to EUR 1,694.

How does the home office deduction work?

You can deduct EUR 6 per home office day, up to 210 days (EUR 1,260) per year. The deduction applies even without a separate home office room. It is offset against the commuter allowance -- you cannot claim both for the same day.

What are work-related expenses and when should I itemize?

Work-related expenses include everything related to your job: commuting costs, work equipment, training, professional literature, work clothing. The flat rate is EUR 1,230. Once your actual costs exceed this, itemizing pays off.

Which craftsman costs can I deduct?

You can deduct 20% of labor costs (not material costs) for craftsmen, up to EUR 1,200 per year. This includes renovation, repairs, maintenance -- all in your own home. The invoice must be paid by bank transfer.

What tax benefits do Riester and Ruerup pensions offer?

Riester contributions are deductible up to EUR 2,100 as special expenses. Ruerup/basic pension contributions are fully deductible since 2023. Both reduce your taxable income and increase your refund.

When is the deadline for filing a tax return?

For tax year 2025, the deadline is July 31, 2026 (with tax advisor: February 28, 2027). A voluntary return can be filed retroactively for up to 4 years.

What is the reasonable personal burden for medical expenses?

Medical expenses are only deductible above the reasonable personal burden, which is 1-7% of total income depending on your situation. For a single person with EUR 45,000 income, the threshold is about EUR 2,700.

How accurate is this calculator?

The calculator provides a good estimate based on current 2026 tax formulas. Deviations may occur due to special circumstances (e.g. side income, capital gains, foreign income). For exact calculations, we recommend ELSTER or a tax advisor.

How to Deduct Craftsman and Household Service Costs | Tax Refund Calculator

Why Are Craftsman Costs Particularly Valuable?

Craftsman costs and household services are deducted directly from your tax bill -- not just from taxable income. This makes them especially valuable: EUR 1 in craftsman bonus saves EUR 1 in taxes.

Craftsman Costs (Section 35a Para. 3 EStG)

You can deduct 20% of labor costs for craftsmen, up to EUR 1,200 per year. Important: Only labor, travel and machine costs count -- NOT material costs. The invoice must separately list labor and material costs.

What Counts as Craftsman Services?

Renovation (painting, wallpapering, flooring), repairs (heating, plumbing, electrical), maintenance (heating service, chimney sweep), garden work (tree trimming, hedge cutting), modernization (new windows, insulation). New construction is excluded.

Household Services (Section 35a Para. 2 EStG)

Also 20% of costs, but up to EUR 4,000 per year. This includes: cleaning help, garden maintenance, winter service, childcare (at home), care services, pet sitting (at home).

Important Rules

The invoice must be paid by bank transfer -- cash payments are not recognized. You need a proper invoice with separate listing of labor costs. The service must be performed in your home or on your property.

Practical Example

You have your apartment painted for EUR 3,000 (EUR 2,000 labor, EUR 1,000 materials). You also have a cleaner for EUR 200/month (EUR 2,400/year). Craftsman bonus: EUR 2,000 x 20% = EUR 400. Household services: EUR 2,400 x 20% = EUR 480. Direct tax savings: EUR 880.