The Income Tax Return 2026 campaign begins tomorrow (April 8) with a clear reality: most usual household expenses do not deduct for the average taxpayer. However, there are some exceptions that can mean savings of hundreds or even thousands of euros, especially for self-employed individuals or owners who rent out housing.
According to an analysis by Selectra, the key is not so much in the expense itself, but in who pays it, what it is used for and what the taxpayer's tax situation is. Usual services such as electricity, internet, insurance or security systems can have some tax impact in certain cases.
Electricity, gas, water and internet: very limited deductions
The basic household supplies represent one of the most important recurring expenses, but their tax deduction is very restricted.
According to Selectra, self-employed individuals who work from home can deduct part of these expenses by applying 30% on the percentage of the home allocated to economic activity. This notably reduces the final deductible amount.
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In the case of telephony and internet, self-employed workers can also apply this formula if they work from home. However, if they have a premises or office exclusively for their activity, they can deduct 100% of the expenses, as they are considered necessary to generate income.
For owners who rent housing, the situation is different: if they pay the utilities, they can deduct 100% of the expense.
Selectra gives some examples:
- With an office that occupies 20% of the home and a monthly internet and telephony bill of 60 euros, the deduction would be 3.6 euros per month (about 43 euros per year).
- With a monthly bill of 200 euros, the deduction would rise to 12 euros per month (about 144 euros annually).
- If gas and water expenses are 100 euros per month, the deduction would be 6 euros per month (about 72 euros per year).
- In contrast, an owner who pays 1,200 euros annually in utilities for a rented home can deduct 100% of the expense, with a tax impact of about 300 euros per year.
Alarms and security systems
Home security systems, such as alarms or cameras, do not generate deductions for individuals in their habitual residence.
According to Selectra, there are indeed two situations in which they can be deducted:
- Rental homes, where the owner can deduct both the monthly fees and the investment in equipment (the latter through amortization).
- Self-employed individuals who work from home, who can deduct a proportional part if the system protects the work area.
In commercial premises or businesses, the deduction is total as it is considered a necessary expense for the activity.
For example, an owner who pays 40 euros per month for an alarm in a rented property can deduct 480 euros per year, which represents an approximate saving of 120 to 150 euros annually.
Insurance: reduced fiscal impact
Insurance policies are one of the most common expenses in households, but also one of those that have the least impact on the income tax return, indicate the experts from Selectra.
Home insurance
The home insurance is only deductible in certain situations. For example, if it is linked to a mortgage signed before 2013 and is part of the loan conditions from the beginning.
They can also deduct it, the owners who rent out housing, as it is considered a necessary expense to obtain returns from real estate capital.
Self-employed individuals who work from home can deduct a proportional part according to the space allocated to their activity.
An example: if the annual insurance premium is 300 euros and 20% of the home is used for professional activity, the deduction would be about 18 euros per year.
Health insurance
Health insurance is also not tax-deductible for most individuals. However, the self-employed can deduct up to 500 euros per insured person (or 1,500 euros in case of disability), including spouse and children.
When it is the company that offers the medical insurance as part of the salary, the company can deduct 100% of the cost and the worker does not pay taxes on the policy within certain limits.
A self-employed person who pays 600 euros a year for their health insurance can deduct up to 500 euros, which represents an approximate saving of 120 to 150 euros annually, depending on the tax bracket.
Life insurance
Life insurance is not generally tax-deductible, although it can be in specific situations.
For example, if it is linked to a mortgage signed before 2013, it can be included within the deduction for main residence. It can also have tax advantages if it is linked to savings or investment products or if self-employed individuals contract it as coverage linked to their professional activity.
In some cases, the taxpayer can deduct up to 15% of the linked amounts, within the established limits.
Car insurance
Car insurance is not deductible for individuals, but the self-employed can include it as an expense if the vehicle is linked to their professional activity.
This occurs in profiles such as sales representatives, delivery drivers or professionals who need the car to work. In these cases, they can also deduct other associated expenses, such as fuel or maintenance.
For example, a self-employed person who pays 600 euros a year for their car insurance and uses the vehicle exclusively for work can deduct 100% of the expense, with an approximate saving of 150 to 200 euros a year, depending on the tax rate.
Pet insurance
Pet insurance does not offer a deduction in the IRPF, except in very specific cases linked to economic activities, such as animals used in farms or businesses.
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Electric car: up to 3,000 euros deduction
One of the most relevant incentives of the income tax return is the purchase of electric vehicles.
The state deduction allows to recover 15% of the purchase price, with a maximum of 3,000 euros, provided that the vehicle is new and for private use.
In addition, the installation of charging points also allows applying this deduction. Some autonomous communities, such as the Valencian Community, add additional incentives.
The purchase of an electric car costing 20,000 euros allows applying a deduction of up to 3,000 euros on the tax return, highlights the comparator's report.
Energy and reforms: the highest deductions
The greatest tax advantages are currently linked to energy efficiency.
The works that reduce energy consumption can generate deductions of:
- 20% if heating and cooling demand is reduced.
- 40% if energy efficiency is significantly improved.
- 60% in comprehensive building rehabilitation.
These measures include installations such as solar panels or aerothermal systems, with limits that can reach 15,000 euros annually.
For example, a solar panel installation of 6,000 euros can generate a 40% deduction, that is, up to 2,400 euros on the tax return.
How much can really be saved
The final impact on the 2026 Income Tax Return depends on the taxpayer's profile, they emphasize at Selectra:
- Self-employed person working from home: adding telecommunications, utilities, insurance and car, the saving can be between 550 and 750 euros per year, depending on expenses and the tax rate.
- Owner with rental property: between alarm, utilities and home insurance, the saving can reach between 400 and 600 euros annually.
- Individual without economic activity: the saving is practically nil, except for deductions such as electric vehicles or energy efficiency, where it can be between 1,000 and 3,000 euros or more, although on a one-off basis.