Household Tax Deduction for Child Care 2026

Save up to €3,200 per year as a couple on child care

Household Tax Deduction for Child Care in 2026

In 2026, the household deduction remains at the same level as 2025: the compensation rate is 35% of the labor cost, with a €150 deductible and a maximum deduction of €1,600 per person. The deduction applies to services purchased for the home, including child care. For a two-parent family, the combined deduction can reach up to €3,200 per year – a significant saving on child care costs.

What is the household deduction in 2026?

The household deduction is a tax deduction you receive for services purchased for the home, such as child care, cleaning, or care work. In 2026, the compensation rate for child care services is 35% of the invoiced labor cost. The maximum deduction is €1,600 per person and the deductible is €150. The deduction is granted in the year the payment is made.

How to calculate the 2026 household deduction

Example: Your family uses child care services totaling €3,000 per year. The household deduction is calculated as follows:

3 000 € × 35 % = 1 050 €

The €150 deductible is subtracted from this amount:

1 050 € − 150 € = 900 €

So your actual cost for child care is:

3 000 € − 900 € = 2 100 €

Couples can benefit twice

The household deduction is personal, so both parents can claim it separately. Together, a couple can receive up to €3,200 in deductions per year when the combined child care bill is large enough. Each person has a €150 deductible.

How to claim the household deduction

Claiming the household deduction is easy. When you use our child care service, the labor portion is clearly marked on your invoice, which you can report in your tax return. You can conveniently submit the deduction directly through the Finnish Tax Administration's OmaVero service. You can also report the deduction in advance on your tax card, so the benefit is reflected in your monthly salary right away.

Why use the household deduction for child care?

Hiring a babysitter with the household deduction is a smart choice. A professional caregiver brings peace of mind and frees up parents' time – whether for busy weekdays, remote work, or regular care needs. Through Ilo-Nallet, you always get the same familiar caregiver, and the labor portion is pre-marked on the invoice for your tax return.

Summary: In 2026, you can deduct 35% of the labor portion of child care services from your taxes. The maximum deduction is €1,600 per person with a €150 deductible. A couple can benefit by up to €3,200 combined.

Comparison with previous years

In 2025, the household deduction terms were the same: 35% compensation rate, €150 deductible, and €1,600 maximum deduction per person. In 2024, the deduction was significantly higher – 60% with a maximum of €3,500 per person.