Pillar 3a maximum contribution, health insurance premiums or work-related travel costs: what exactly can I deduct from my taxable income on my tax return in order to save on taxes? We provide an overview of the individual items and what you should bear in mind.
Please note: rules vary from canton to canton. You should check the deductions with your cantonal tax office.
Tip: in some cantons, including Zurich, Aargau and Geneva, you can complete your tax return directly online. The system indicates which flat-rate deductions can be made. In general, it is very important to have all your tax documents to hand and to know which costs are tax-deductible.
Benefit from tax advantages at work
You can deduct any annual expenses you have incurred in relation to your job in your tax return. These include the following:
Costs for travelling between your home and place of work
You can enter your annual or monthly public transport travelcards as a work expense. Costs for bicycles or small motorcycles can also be deducted. If you travel to work by car, you can claim the travel costs under certain conditions (usually CHF 0.70 per km). This is the case if using public transport is unfeasible for reasons of time or health or if no public transport is available (e.g. if you work in the countryside or in the case of shift work). As a rule, the time saved when using a car instead of public transport should be more than an hour. Another reason for deducting costs relating to private motor vehicles would be that your employer requires you to use a car.
The maximum deduction for travel costs to and from work is CHF 3200 per year for federal tax. In some cantons, higher deductions can be made for cantonal tax (e.g. CHF 5200 in the canton of Zurich; it is worth checking the specific cantonal regulations).
Meals out
You can deduct a flat-rate amount of up to CHF 3200 per year for meals consumed during working hours. If your employer offers you a subsidised lunch, you can deduct up to CHF 1600 per year.
Other work-related expenses and training costs
Any expenses incurred in carrying out your work can be deducted here. This includes the cost of work clothes that are only be used for work purposes, such as special protective clothing. Costs spent on equipping your office for working from home can also be deducted under certain conditions.
If you work away from home during the week and have officially declared this to the registration office (Personenmeldeamt), you can make additional deductions.
Education and training costs are also deductible. In order to do so, the education or further training must be related to your work. Expenses here include not only course fees, but also exam fees, retraining costs, specialist literature, travel costs and meals. Do not forget to keep your receipts so you can submit them together with your tax return.
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Benefit from tax advantages for insurance and future provisions
Health and accident insurance
Health, accident or life insurance premiums can be deducted up to a certain amount. Illness and accident costs which are not covered by your insurance and which exceed a certain percentage of your net income may also be deducted. This includes, for example, medication prescribed by a doctor, hearing aids, visual aids, dental costs or visits to a doctor that are paid for by the health insurance.
It is possible to deduct up to CHF 1700 if you are unmarried and a maximum of CHF 3500 for married couples. These amounts may vary from canton to canton.
Payments into pillar 3a
Contributions paid into your pillar 3a can be deducted from your taxable income up to a maximum amount set each year. The maximum amount that can be deducted in aktuelles-jahr is abzug-3a for people in employment. Self-employed workers can deduct 20% of their net income up to a maximum of abzug-3a-selbststaendige per year in aktuelles-jahr. Please note that the contributions paid in any given year apply for that same year in your tax return. This means that the previous maximum contributions from 2024 apply for your 2024 tax return.
Pillar 2 contributions
Purchases into your pension fund are also tax-deductible. You can find the potential amount you can purchase on your pension fund certificate.
Asset management costs
The costs of managing your assets, such as fund fees or advisory costs, can be deducted for tax purposes.
Benefit from tax advantages in relation to real estate
Maintenance and renovation work
In principle, all costs incurred in relation to value-preserving maintenance and renovations for your home can be deducted from your taxable income. This also includes repairs such as painting, gardening and renovation work.
Investments aimed at saving energy
If you invest in energy-saving measures for your building, such as a photovoltaic or solar system, you can deduct the associated costs for tax purposes. Any plumbing and roofing costs incurred can be deducted as building maintenance.
Investments aimed at protecting the environment
Similar to energy-saving measures, investments that are aimed at protecting the environment are also tax-deductible. These include, for example, the installation of heat pumps or measures to improve thermal insulation that reduce energy consumption over the long term.
Underusage deduction
If you do not fully use parts of your home, for example a room or empty apartment, you can benefit from an underusage deduction under certain conditions.
Underusage deduction
In addition to maintenance costs, loan interest such as mortgage interest may also be deducted.
Good to know
When deducting real estate costs, you can choose between a flat-rate deduction or deducting the actual costs. The flat rate is generally 10 to 20% of the imputed rental value or rental income. If the actual costs are higher and you wish to deduct them, you must submit all invoices and receipts as supporting documents. If you do not have supporting documents or if they are incomplete, only the lump-sum deduction is permitted.
Tip
If the maintenance and renovation work or energy-saving and environmentally-friendly investment costs exceed your taxable income in the year in which the work was done, they can be carried over to the following year and deducted over a total of three tax periods.
Other potential tax deductions
Donations
Donations to non-profit organisations and political donations can be deducted in your tax return. Both financial contributions to charitable institutions and donations to political parties or organisations are tax-deductible.
Child deductions
Expenses related to children and childcare costs can be deducted in your tax return:
- Child deductions: a fixed amount may be deducted for each dependent child (up to the age of 18 or until the end of their initial training).
- Childcare costs: costs for childcare (e.g. daycare centre or childminder)
- Maintenance payments for children can also be deducted
Loan interest
Interest paid on mortgages or personal loans is deductible. Please note, however, that lease payments are not tax-deductible costs as they are not real loan interest.
Lump-sum deduction
You can enter a social security deduction in your tax return for children or dependents.
Maintenance and support payments
Alimony and maintenance payments paid for children or an ex-partner can be declared on your tax return.
How much tax must I pay?
The amount of your tax you pay depends on several factors:
- Income
- Assets
- Marital status
- Religious affiliation
- Number of children
- Place of residence
When do I have to pay taxes?
The provisional invoice for direct federal tax is invoiced in March for the previous year and must be paid by 31 March.
The situation is different for cantonal and municipal taxes. For example, in the canton of Bern you will already receive three instalment invoices (in May, August and November) for cantonal and municipal taxes (income and wealth taxes). These are provisional payments on account for the current tax year. The instalment invoices represent 40%, 70% and 100% of the estimated amount of the invoice, less any payments made so far. The invoice amounts are based on previous assessments, a self-assessment or a provisional assessment (source: Tax Administration of the Canton of Bern)
Tip
Interest is paid on taxes paid before they fall due; in many cantons, the rate paid is currently higher than the interest rates paid on savings accounts. So it is a good idea to not wait for the invoice to arrive from the tax office and, if possible, pay your entire tax bill as early as possible in order to benefit from these attractive interest rates.
Questions?
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