How Swiss Taxes Work: Federal, Cantonal and Municipal
Why where you live matters so much, which deductions are available and how the tax return works.
7 min read · Salary & Tax
Switzerland has three levels of income tax: the federation, the 26 cantons and the municipalities. Cantons and municipalities set their own rates and rules, which is why the same income can lead to very different tax bills.
What is taxed
Income includes salary, pensions, interest, dividends and rental income. Capital gains on private assets, such as shares, are normally tax-free. Wealth above an allowance is subject to annual wealth tax (a feature few countries have).
Common deductions
- Pillar 3a and pension fund buy-ins.
- Commuting costs (federal cap CHF 3,300).
- Meals away from home, work-related expenses (flat rates available).
- Health insurance premiums (a capped lump sum) and medical costs above a threshold.
- Childcare costs and child deductions.
- Donations, up to 20 % of net income.
- Alimony and mortgage interest.
Marginal vs. average rate
The marginal rate – tax on your next franc – is key for judging deductions. For many middle-income households it is between 25 % and 40 % combined, so a CHF 7,258 3a payment saves roughly CHF 1,800–2,900.
Example with default values. Open the calculator →
The return
Most cantons send a pre-filled form and an online portal in the spring; the deadline is typically 31 March but extensions are easy to request. Keep receipts for deductions for several years.
Compare effective burdens with the Federal Tax Administration's online calculator and plug the results into our canton move calculator.