Save on Child Care with the Household Tax Deduction

Take advantage of the tax credit and save up to €3,200 a year as a couple.

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Household Tax Deduction for Child Care in 2026

The household deduction currently in force for 2026 is 35% of labour costs, less a €150 deductible, up to €1,600 per person per year. It 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 proposed increase is before Parliament and is not yet in force.

Household tax deduction update

The Government has proposed raising the household tax deduction retroactively for 2026 to 40% and the maximum to €2,100 per person. The proposal is not yet in force. If Parliament approves it, the new terms would apply to costs paid from 1 January 2026. The calculations in this guide use the current terms: 35% of the labour portion, up to €1,600 per person, with a €150 deductible. We will update the guide once the effective date and final terms have been confirmed.

Check the current status on the Finnish Tax Administration website.

How the household deduction lightens up your family life

The household deduction makes professional child care notably more affordable. In 2026, you can deduct a whopping 35% of the labor portion of our child care services. The maximum benefit is €1,600 per adult (with a €150 deductible), and the savings directly lower your taxes.

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.

Claiming your deduction via OmaVero is simple

We've made claiming your deduction effortless: the labor share is always clearly specified on your invoice. Simply declare this amount in the Tax Administration's OmaVero service. You can update your tax card immediately so you benefit right away in your next paycheck.

Why combine Ilo-Nallet with the tax deduction?

You save real money while securing the presence of a reliable, familiar professional for your child. Because of the substantial tax credit, getting help for a busy work week or just to catch a breath is much more affordable than you might think.

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Will the household deduction stay the same in 2026?

Under the current terms, the rate is 35% and the maximum deduction is €1,600 per person per year. The Government's proposed increase is before Parliament and is not yet in force.

Can a couple both claim the deduction?

Yes. Both parents can claim the deduction separately, which means the combined benefit can be up to €3,200.

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.