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Every year, the Swiss spend an average of 12 percent of their gross income on taxes. These 8 tips will help you save on taxes in Switzerland.
It’s worth saving on taxes. This is because you can use the money you save as an additional amount in your household budget or as an investment in the future. This way, you can invest the amount saved and earn a return on the capital markets or use it as security in your old age by paying into your retirement provision.
Taxes can be difficult for people who only deal with them once a year as part of their tax return. For this reason, the most important terms are briefly explained here:
For a state to function, it needs money. This money is raised, among other things, through levies by the federal government, the cantons and the communes.
Are you already familiar with the Swiss tax system? Then skip directly to the tips.
All persons living and working in Switzerland are liable for tax in Switzerland and pay annual tax on their income and assets. Married couples and couples in a registered partnership are taxed jointly. Minors are taxed together with their parents until they reach the age of majority.
Anyone who lives and works abroad but owns a property or a business in Switzerland is also liable for tax in Switzerland.
Taxes for an entire year must always be paid in the municipality and canton in which a taxable person resided on December 31 of the tax year. Real estate is taxed in the municipality where the property is located.
In Switzerland, taxes are levied at three levels:
The following applies for the duration of the tax liability:
In the first half of the year, every taxable person usually receives a provisional tax bill for cantonal and municipal taxes, which is based on the most recent definitive tax assessment. The date of the bill varies from canton to canton. By paying the provisional tax bill in installments, it is possible to avoid having to pay the entire tax amount at once.
At the same time, taxpayers receive the tax return, which must be completed by a specified deadline. The cantons determine the deadlines and check the tax return once it has been submitted. In most cases, however, the municipal tax offices carry out the final assessment and draw up the final bill.
The taxpayer then receives a so-called assessment notice and the final bills for state, municipal and federal taxes.
In order to keep your tax expenditure as low as possible and to use the money saved for other purposes, we would like to give you the following saving tips:
If you have high professional costs that exceed the flat-rate deduction, you can claim a deduction for your actual expenses. For direct federal tax and in some cantons, the annual deduction for professional expenses amounts to CHF 2,000 for up to three percent of net salary, up to a maximum of CHF 4,000. Higher costs for work clothes, meals, technical books and computers can be deducted if the appropriate receipts are submitted.
Further training costs can be deducted for further training after initial training. Course and examination fees, the cost of course materials and travel expenses can all be deducted. The maximum amount for federal tax is CHF 12,000, while the cantons themselves can determine the maximum deductible training costs.
If you make additional payments (including purchases) into Pillar 2 (pension fund), you can deduct these from your taxable income. However, a purchase of pension fund benefits is only possible if there is a contribution gap and the maximum possible retirement savings have not yet been reached. Our expert answers further questions on the subject of the pension gap in the article “Part-time and pension fund: Mind the retirement gaps!”.
You can also save on taxes by making payments into Pillar 3a. This is because these amounts can be deducted from taxable income. The following are deductible: payments up to a maximum amount of CHF 7,258 (as of 2025) for gainfully employed persons with a pension fund and CHF 36,288 (as of 2025) for gainfully employed persons without a pension fund.
Cash and in-kind donations to non-profit organizations can be deducted from taxable income. Both for direct federal tax and in most cantons, donations starting from CHF 100 can be deducted. However, the deduction is limited to 20 percent of net income. The cantonal differences can be seen on the website of the Zewo Donation Foundation (in German).
If you own a property, you can deduct the mortgage and debt interest. In addition, you can choose between the actual costs and the flat-rate deduction for maintenance costs each year. The flat-rate deduction is 10 percent at the federal level and in most cantons for properties that are no more than 10 years old. For older properties, the flat-rate deduction is 20 percent of the imputed rental value or rental income.
If the actual outlays are higher than the flat-rate deduction, you can claim them and save even more on taxes. So it’s worth planning a major renovation so that the flat-rate deduction is exceeded. Value-adding expenses are not deductible. However, investments aimed at saving energy and protecting the environment can be deducted.
If you work and your child is cared for by someone else, you can deduct up to CHF 25,000 from direct federal tax in addition to the normal child deductions. However, it must be possible to prove the expenses for whatever type of daycare you use.
Our guide on Saving tips for families shows you many other options on how you as a family can save money on top of taxes.
If you pay your taxes before your preliminary tax bill is due, you will receive preferential interest in many cantons. This interest is often higher than the interest on a regular savings account. Late payments, on the other hand, are penalized with negative interest.
Nadine Graf is a theme manager and writes texts for AXA on topics related to insurance and beyond.
