Finns consider household reduction important, and the cut that came into effect at the beginning of 2025 was reflected in both consumer purchasing behavior and companies' personnel decisions. The personnel impact has been significant: almost one in three companies in the sector reduced jobs and one in five laid off employees. An extensive survey conducted by Veria shows that household reduction has a significant impact on domestic consumption, employment and the well-being of citizens.
40 percent of Finns consider household deductions important to them, according to Verian's recent Household Deduction 2026 survey. This is a high proportion considering that 41 percent of respondents had used household deductions in the past five years. Among those who had used the deduction, its importance rose to 69 percent.
The household tax deduction has a clear significance in Finnish service purchases: almost two-thirds of citizens estimate that it has a significant or somewhat significant impact on the decision to purchase services, and just over a third feel that it encourages them to use services more. The use of the deduction is more common the older the respondent group is – families with children are also a significant user group.
"The household deduction has a clear significance in the service purchases of Finns. Increasing the amount of the deduction could have positive effects on domestic consumption, employment, combating the grey economy, and the well-being of the elderly and families with children," says a tax expert who participated in the study. Risto Walden.
The cut immediately reduced service purchases
The household deduction was cut from the beginning of 2025: the maximum amount and reimbursement percentage were reduced and the deductible increased. The consequences were quickly visible. Of those who had taken advantage of the deduction in the past five years, 31 percent reduced their service purchases after the cut and 8 percent stopped them altogether. Only a quarter of respondents kept their purchases unchanged.
The largest reductions in purchases were made in household chores and cleaning services, where 43 percent reported reducing purchases. The second largest number of cuts were made in painting and surface renovations.
A third of companies reduced jobs
The reduction has also had a strong impact on companies providing services. Verian conducted a separate survey of companies providing services covered by the household deduction, of which 72 percent reported that the cut had reduced their order book significantly or somewhat. As many as 83 percent of companies assessed that the household deduction was currently somewhat or completely insufficient.
The impact on personnel has been tangible: 31 percent of companies reduced jobs and 20 percent laid off employees as a result of the cuts. Layoffs were most pronounced in cleaning and care services, with layoffs in construction and building services. Almost half of the companies stated that the elderly benefit most from the household deduction.
Household tax deduction to be developed in the next government term
The study shows that there are many ways to improve the household tax deduction. Almost half of Finns would increase their service purchases if the amount of the deduction were increased.
In Sweden, the household tax credit is taken into account directly in the price of the service. The service provider applies for the tax credit when ordering, so the subscriber does not have to apply for it afterwards. 44 percent of Finns would use the household tax credit or use it more if the tax credit were immediately visible on the bill and did not have to apply for it themselves. The Swedish model has significant structures that make the fight against the grey economy more effective.
The organizations propose that the government program outline a model for household tax deductions and that the government commit to it at least for the entire election period. The predictability of household tax deductions benefits consumers, businesses, and the economy as a whole.
Information about the study
The consumer survey data was collected from a respondent panel used by Verian between January 30 and February 8, 2026, and 2087 Finns responded. The results have been weighted to represent the population aged 18 and over, excluding the Åland Islands. The survey has a maximum margin of error of ± 2,2 percentage points.
The data for the business survey was collected from member companies of the participating organizations between February 9 and April 20, 2026. 552 companies responded to the survey. The margin of error for the business data is a maximum of ± 4,2 percentage points.
The Household Reduction 2026 study was carried out by Verian on behalf of RASI ry, ETU ry, Finnish Entrepreneurs, Finnish Entrepreneurs' Women, Finnish Homeowners' Association, Real Estate Employers' Association, Building Technology Association, Welfare Industry Hali ry, Electrical and Electronic Trade Association STK and the Wood Industry.