How Much Tax Will You Save on Craftsman Costs?
Deduct 20 % of your labor, travel and machine costs directly from your German income tax — up to €1,200/year under §35a Abs. 3 EStG.
- Tax Saving
- €440
- Deductible (20 %)
- €440.00
- Maximum Amount
- €1,200
- Eligible Costs
- €2,200.00
- Not Deductible
- €800.00
- Subsidy Rate on Total
- 14.7 %
Deductible (20 %)14.7 %
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Breakdown
| Category | Amount |
|---|---|
| Labor Costs | €2,000.00 |
| Travel Costs | €150.00 |
| Machine & Consumables | €50.00 |
| Total Eligible Costs | €2,200.00 |
| Material Costs | €800.00 |
| Total Invoice | €3,000.00 |
| Tax Reduction (20 %) | €440.00 |
| Cap §35a EStG | €1,200 |
| Actual Tax Saving | €440.00 |
Note: Calculation based on §35a Abs. 3 EStG (2026). Eligible: labor, travel and machine costs — material costs are NOT deductible. Payment must be made by bank transfer (no cash). Keep the invoice for at least two years.
Related Calculators
Background
Deducting Craftsman Costs in Germany 2026: The €1,200 Tax Credit Under §35a EStG
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