Types of deductions
Fixed amount of deductions:
Amount represents the fixed monetary value that taxpayers can deduct from their taxable income for.
For example: if you reside in Zurich and have a child, you can deduct 9,300 CHF.
Percentage deductions:
Percentages represent deductions calculated based on a percentage of certain expenses.
For example: In Thurgau deductions of child care expenses by third parties could be 75% of these expenses. If a family pays 10,000 CHF for third parties to take care of the child, only 75% of these expenses (7,500 CHF) will be deducted.
Minimum amount of deductions:
The minimum column specifies the minimum amount that can be deducted in a canton. If the deduction amount calculated based on expenses is lower than this minimum, the taxpayer can still deduct this minimum amount.
For example: If the minimum amount of deductions is 4,000 CHF and the expenses are 3,400 CHF (lower than minimum), a person can still deduct 4,000 CHF.
Maximum amount of deductions:
The maximum column specifies the upper limit or cap on the deduction amount in a canton. Taxpayers cannot deduct more than this maximum amount, even if their eligible expenses exceed this limit.
For example: If child education expenses are 25,000 CHF for a family in a Canton which sets the upper limit for deductions on 15,000 CHF. 10,000 (25,000 – 15,000) CHF will not be deductible.
Income tax deductions
Switzerland’s income tax system allows for various deductions that can significantly reduce taxable income, providing financial relief for taxpayers. These deductions vary widely across the Swiss cantons. Below, you will find a series of charts that illustrate the different amounts and types of deductions available in each canton.
General deductions for children
The chart below illustrates the amount of CHF a family can deduct from their income for a child, using a 12-year-old as an example.
There are some Cantons in Switzerland, where besides general rules shown on the chart above additional rules should be taken into account.
| Canton | Additional Rules |
|---|---|
| Aargau | Deduction for children between 14 and 17 years: 9,500; Deduction for adult children: 11,600 |
| Appenzell Ausserrhoden | Deduction for age under 5: 5,300; Deduction for age over 15: 11,600 |
| Appenzell Innerrhoden | Deduction from the 3rd child: 8,000 |
| Basel-Landschaft | Deduction for adult children outside the house: 2,000 |
| Basel-Stadt | Deduction for adult children outside the house: 5,800 |
| Fribourg | Deduction for 1st and 2nd child: 8,600 maximum amount; from the 3rd child: 8,100 - 9,600 (min to max) |
| Graubünden | Deduction for age over 6: 9,600 |
| Jura | Deduction from the 3rd child: 6,300; Deduction for adult children outside the house: 2,400 |
| Neuchâtel | Deduction for age over 14: 8,200; Deduction for age under 4: 6,200; Deduction for children between 4 and 13 years: 6,700 |
| Schaffhausen | Deduction for age under 5: 3,000 |
| Schwyz | Deduction for adult children: 11,000 |
| St. Gallen | Deduction for age over 6: 10,600 |
| Thurgau | Deduction for age 18 or 19: 8,300; Deduction for age over 19: 10,400 |
| Uri | Deduction for adult children: 3,100 |
| Valais | Deduction for age 17: 11,860; Additional child deduction from 3 children: 1,240; Deduction for adult children: 11,860 |
Deduction of child care expenses by third parties
The chart below demonstrates the maximum amount of deductible income when a third party takes care of the child.
In the case of Canton Thurgau deductions cannot exceed 75% of the expenses.
Deduction for child education costs (external education)
The chart below illustrates additional deductions for various cantons. Some cantons have a fixed amount (light-orange), while others have a maximum limit (orange).
The cantons of Ticino (TI) and Nidwalden (NW) have specific rules regarding deductions for external education.
In Ticino, deductions are provided based on the type and frequency of external education. For external education that requires a weekly stay outside the canton, a deduction of CHF 13,700 is allowed. If the external education does not involve a weekly stay outside the canton, the deduction is CHF 6,500. Additionally, for external education without any weekly stay, a deduction of CHF 1,900 is permitted.
In Nidwalden, the rules vary slightly. For external education that requires a weekly stay and is applicable from the second child onwards, a deduction of CHF 7,800 is available. For external education without a weekly stay outside the canton, a deduction of CHF 1,700 is allowed.
Deductions for two-income couples
The chart below describes deductions for two-income couples. Most cantons have a maximum threshold; only two (Appenzell Ausserrhoden and Glarus) set minimum as well.
When both spouses earn an income, the tax system often provides a two-income deduction to account for the additional financial burden of both partners working. This helps mitigate the so-called “marriage penalty,” where combined incomes could push the couple into a higher tax bracket.
Additional rules by canton:
- Neuchâtel – 25% of the income
- Appenzell Ausserrhoden – 10% of the income
- Bern – 2% of the income
- Glarus – 10% of the income
Deductions for married persons
The chart below illustrates deductions for married couples across Swiss cantons. Most cantons offer flat deduction amounts, while others establish minimum and maximum thresholds.
Married couples are typically taxed jointly. This means their incomes are combined, and they file a single tax return. The tax system usually provides a basic deduction for being married, which helps reduce the combined taxable income.
Obwalden – 20% of the income.
Deduction of insurance premiums and savings interest
Insurance premiums are the amounts paid by individuals to maintain their health, life, or other insurance policies. These regular payments ensure that the person , who made contributions, receives financial protection or benefits when needed. Premiums can include contributions to mandatory occupational pension plans (Pillar 2) and voluntary private pension plans (Pillar 3a). These contributions are crucial for securing financial stability during retirement and can significantly impact one’s overall tax situation. Saving interests are interests earned on the contributions described above.
The charts below show the maximum amounts of deduction of insurance premiums and savings interest. They vary by Swiss canton and type of individual taxpayer (married persons, single persons and persons with dependent children).
* If a canton is not depicted on the chart, it indicates that the deduction amount for that specific purpose is zero in that canton.
Additional rules by canton:
- Solothurn – CHF 975 (without contributions pillar 2/3a)
- Jura – CHF 3,350
Deductions for assets
Assets are economically valuable resources owned by a Person (or Persons) that have can provide future financial benefits. Assets might be physical (for example real estate) or financial (stocks, bonds, saving accounts etc).
The charts below show the maximum amounts of deduction for assets. They vary by Swiss canton and type of individual taxpayer (persons with a child, married persons and single persons).
* If a canton is not depicted on the chart, it indicates that the deduction amount for that specific purpose is zero in that canton.