Healthcare Cost Deduction
Do you have high healthcare costs that are not reimbursed by your health insurance? You can deduct part of these from your taxable income. This concerns specific healthcare costs: think of co-payments for medication, medical aids such as hearing devices, extra costs due to illness or disability, and diet costs prescribed by a doctor. Not all healthcare costs are deductible. Your deductible, insurance premium, glasses, and contact lenses, for example, cannot be deducted. Additionally, there is a threshold: only the portion of your healthcare costs above a certain amount is deductible. This threshold depends on your income – the higher your income, the higher the threshold.
Example
You had €3,500 in specific unreimbursed healthcare costs. Your threshold income is €40,000, making the threshold €660 (2025, = 1.65% of your threshold income). You can deduct €3,500 - €660 = €2,840. At a 36.97% tax rate, this yields a €1,050 refund.
Why does this matter?
Many people forget they can deduct healthcare costs, especially with chronic conditions or when paying many co-payments. Save all receipts and statements from your health insurer. Even relatively small amounts can exceed the threshold when added together.
Want to know how this applies to you?
This term is relevant for our Your resident tax sorted. service.