When calculating ROT avdrag, one of the most common sources of confusion is understanding which parts of an invoice qualify. Does ROT apply before or after VAT? Are materials included? What about travel costs?
This guide explains how ROT, VAT (moms) and labour costs work together and shows practical 2026 examples.
ROT Is Based on Qualifying Labour Costs
The most important rule is simple: ROT applies to qualifying labour—not the entire project cost.
A contractor’s invoice may include labour, materials, equipment, travel, administration and other expenses. These costs should be separated because the tax reduction is calculated from the qualifying labour portion.
How Much Is the ROT Deduction in 2026?
For 2026, ROT is generally 30% of qualifying labour costs. The maximum ROT tax reduction is SEK 50,000 per person per year. ROT also forms part of the combined ROT and RUT annual allowance of SEK 75,000 per person.
For the wider rules, read our ROT Avdrag 2026 guide.
Does ROT Include VAT?
VAT—known as moms in Sweden—is included in the qualifying labour cost used for a normal consumer ROT calculation. You should not remove VAT from the qualifying labour amount before calculating the reduction.
However, only VAT associated with qualifying labour contributes. VAT on materials or other non-qualifying expenses does not make those expenses eligible.
Simple ROT and VAT Example
Suppose qualifying labour including VAT is SEK 40,000:
SEK 40,000 × 30% = SEK 12,000
The potential ROT reduction is SEK 12,000, leaving SEK 28,000 for that labour portion. This assumes the work and taxpayer satisfy all applicable requirements.
What Happens When Materials Are Included?
| Invoice item | Cost |
|---|---|
| Qualifying labour | SEK 50,000 |
| Materials | SEK 30,000 |
| Other costs | SEK 5,000 |
| Total | SEK 85,000 |
ROT is not calculated on SEK 85,000. It is calculated on the qualifying labour:
SEK 50,000 × 30% = SEK 15,000
The SEK 35,000 in materials and other costs does not increase the ROT deduction.
Are Materials Eligible for ROT?
Generally, materials are not included. Tiles, pipes, bathroom fittings, cabinets, paint, flooring and electrical components may be necessary for a renovation, but their purchase cost does not qualify. Labour used to install them may qualify if the work meets the ROT rules.
Are Travel Costs Included?
Travel and similar additional expenses should be separated from qualifying labour. Ask contractors to itemize labour, materials, travel and other costs so the ROT calculation is transparent.
Why the Invoice Breakdown Matters
Two contractors may each quote SEK 100,000, yet produce different ROT estimates:
- Contractor A: SEK 70,000 labour and SEK 30,000 other costs gives a potential SEK 21,000 ROT.
- Contractor B: SEK 40,000 labour and SEK 60,000 other costs gives a potential SEK 12,000 ROT.
The total project price is identical, but the qualifying labour portion is different.
ROT Example for a Larger Renovation
For qualifying labour including VAT of SEK 180,000, 30% equals SEK 54,000. A single eligible person would generally be limited to SEK 50,000 ROT for the year, assuming sufficient tax and no other restriction reduces the amount.
Can Two Owners Share the ROT?
Qualifying ROT may potentially be divided between eligible owners. For example, SEK 250,000 of qualifying labour produces a theoretical SEK 75,000 reduction at 30%. Two eligible owners may be able to allocate the deduction between them, but each person’s ownership, payment, remaining allowance and tax position matter.
ROT Is a Tax Reduction, Not a Materials Discount
If a project costs SEK 200,000 but only SEK 80,000 is qualifying labour, the calculation is:
SEK 80,000 × 30% = SEK 24,000
It is not SEK 200,000 × 30%.
How Does the Contractor Apply ROT?
In a typical transaction, the contractor deducts the expected ROT amount from the invoice. After the work is completed and you pay electronically, the contractor applies to Skatteverket for the corresponding payment. Final eligibility depends on the official requirements.
Common ROT Calculation Mistakes
- Calculating ROT on the full invoice.
- Including materials, travel or equipment as labour.
- Using the temporary 50% rate that applied during part of 2025; ROT returned to 30% from January 1, 2026.
- Ignoring the SEK 50,000 ROT limit.
- Forgetting previous ROT and RUT usage under the combined SEK 75,000 allowance.
- Assuming the maximum is guaranteed regardless of available tax.
Calculate Labour Cost and ROT
Enter the labour cost, work type, number of eligible people and previous ROT/RUT use to estimate the potential reduction and remaining allowance.
Use the Free ROT & RUT Calculator →
The result is an estimate, not an official tax determination.
Frequently Asked Questions
Is ROT calculated before or after VAT?
For a normal consumer invoice, ROT is generally based on qualifying labour including applicable VAT.
Does ROT cover materials?
No. Materials generally do not qualify for the ROT tax reduction.
Does ROT cover travel costs?
Travel and similar additional expenses generally should not be included as qualifying ROT labour.
What percentage is ROT in 2026?
ROT is generally 30% of qualifying labour costs in 2026.
What is the maximum ROT deduction?
The maximum is generally SEK 50,000 per person per year, subject to the combined ROT/RUT rules and sufficient tax.
Is ROT the same as VAT?
No. VAT is a consumption tax on goods and services. ROT is a tax reduction for qualifying labour.
Official Sources
Final Thoughts
Understanding the relationship between ROT, moms and labour costs makes it easier to estimate the real cost of a renovation. Separate qualifying labour from materials, travel and other expenses, then apply the 2026 rate and relevant personal limits.
You can also compare the two deductions in our ROT vs RUT guide and estimate your figures with the calculator.
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