In 2025, homeowners will be affected by significant changes to tax deductions, particularly in relation to mortgages, home renovations, health, and college expenses.

These changes will introduce new caps on deductible expenses, which will pose a challenge for many taxpayers, especially those engaged in construction and renovation projects.

For example, a single individual earning €82,000 will face a deductible ceiling of €7,000, which can be exceeded by over €3,000 due to renovation costs and additional expenses such as the ecobonus and furniture purchases.

Families with children will also experience an impact on their deductible limits.

A family with one child earning €110,000 will have a renovation deduction cap of €5,500, which, when combined with other expenses, will exceed the €5,600 limit.

These adjustments highlight the financial strain on households as they navigate increased costs associated with home improvements and other essential expenditures.