What is ROT and RUT Deductions?
ROT (Repairs, Conversions, Extensions) and RUT (Cleaning and Household Services) are Swedish consumer tax deductions allowing a 30% reduction in labour costs for qualifying work. ROT maximum is SEK 50,000 per person per year; RUT maximum is SEK 75,000 per person per year. Only individuals can claim these deductions.
Current Rate (Inkomstår 2025)
30% of labour cost; ROT max SEK 50,000/year; RUT max SEK 75,000/year (2025)
Example
A homeowner pays a plumber SEK 30,000 for bathroom renovation labour. She claims 30% ROT deduction = SEK 9,000. The plumber invoices the homeowner for SEK 21,000 (net of the deduction) and claims the SEK 9,000 directly from Skatteverket.
How ROT and RUT Deductions works in Sweden
ROT and RUT deductions are one of Sweden's most popular tax incentives for individuals, designed to stimulate the white economy in domestic services and reduce undeclared labour. From a business perspective, understanding these deductions is important for contractors and service providers who operate in covered sectors.
**ROT (Reparation, Ombyggnad, Tillbyggnad)**
ROT covers work on the taxpayer's own home or holiday home in Sweden. Qualifying work includes: - Repairs and maintenance of the dwelling - Conversion and renovation works - Extensions and alterations - Electrical installation and plumbing (labour only) - Painting and wallpapering (labour only) - Roof work
ROT does not cover: new builds, materials, work on commercial properties, or work where the owner themselves provides labour.
Maximum ROT deduction: SEK 50,000 per person per year.
**RUT (Rengöring, Underhåll, Tvätt)**
RUT covers household services. Qualifying work includes: - Cleaning (hemstädning) - Childcare (provided at home by an approved provider) - Gardening and lawn care - Snow clearance at the home - Moving services - IT household help (IT-tjänster in the home) - Care of elderly or disabled family members
Maximum RUT deduction: SEK 75,000 per person per year (SEK 25,000 for those aged under 65 for cleaning only in some sub-categories — check the latest Skatteverket rules as sub-limits apply).
**How the mechanism works**
The deduction works as a direct payment to the contractor, not a refund to the homeowner. The process is: 1. The service provider (company) does the work 2. They invoice the homeowner for 70% of the labour cost only (30% is the deduction amount) 3. The service provider submits a claim to Skatteverket for the 30% directly 4. Skatteverket pays the 30% to the contractor, subject to verification that the homeowner has sufficient tax capacity (skatteutrymme) — i.e., they have paid enough income tax to justify the deduction
The homeowner's deduction is limited by their total tax liability for the year. If they have insufficient tax, the contractor only receives a partial payment.
**Business implications**
For contractors operating in ROT/RUT sectors, failing to correctly administer the deduction mechanism is a compliance risk. The contractor bears the risk of claiming for a customer who has exhausted their deduction limit. Always verify the customer's remaining skatteutrymme before issuing invoices net of the deduction.
Related terms
Skatteverket is the Swedish Tax Agency, responsible for tax assessment, collection, population registration (folkbokföring), and identity numbers. All company and individual tax filings — including moms, arbetsgivardeklarationer, and income tax returns — are submitted via Skatteverket's e-tjänster (digital services).
Inkomstskatt is Swedish personal income tax on employment, self-employment, and certain other income. It combines a municipal (kommunalskatt) flat rate of approximately 32% with a national (statlig) surcharge of 20% on income above SEK 598,500 (2025). The effective top marginal rate is around 52%.
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