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.
Background
Deducting Craftsman Costs in Germany 2026: The €1,200 Tax Credit Under §35a EStG
11 Min.