Tax calculator Switzerland – calculate your taxes now.

The taxes paid by private individuals are made up of three main elements: federal tax, cantonal tax and municipal tax. Federal tax is levied as a percentage of taxable income. Cantonal tax varies from canton to canton. Municipal tax is often also levied by the canton or – depending on the place of residence – directly by the municipality of residence.

The amount of tax depends, among other things, on your income, assets, marital status, religious affiliation, number of children and place of residence.

• Professional expenses: these include, for example, travel costs, meal costs, training costs or membership fees for professional associations
• Health-related expenses: mostly healthcare costs you pay yourself (varies from canton to canton)
• Insurance and pension contributions: OASI contributions still owed after early retirement, contributions to pillar 3a or also voluntary purchases of pension fund benefits
• Debt interest: such as on mortgages, consumer credit or loans
• Maintenance payments: including alimony and payments for children and ex-partners
• Flat-rate deductions and deductions for children: for example, a general deduction for children or for childcare costs and contributions paid toward persons receiving support
• Donations: such as donations to charitable organizations, political parties or religious communities
  

Pillar 3a tied pension provision gives you the biggest tax benefit, as the federal government provides incentives to encourage this form of pension provision and annual contributions may be deducted from taxable income. Plus, when 3a assets are paid out, they are taxed once only, separately from other income and at a separate rate. The maximum contributions for pillar 3a are defined annually by the federal government.

In the case of pillar 3b flexible pension provision, annual premiums are not usually tax-deductible. On the other hand, payouts are mostly tax-free. And during the contract term, only the current surrender value has to be declared as an asset. In certain cases, payouts under pillar 3b pension solutions with single premiums are also tax-free.

A pillar 3a solution with an insurance company offers a guaranteed rate of interest, which means you can plan on a secure basis. The insurance company may also grant a voluntary surplus-sharing feature, earning you an extra return.

A pillar 3a solution with an insurance company can be supplemented with earning disability and death cover. This means that, should you die, your beneficiaries receive the contractually agreed benefit or, in the event of disability, the insurance continues to pay the contributions, thus ensuring that the savings target is achieved. This is particularly important for people who have no other financial cushion or who devote themselves entirely to looking after their family.

You increase your pension fund assets and improve your financial security in old age. Depending on the amount you purchase, you can thus increase your monthly pension. For people who have a gap in their pension cover and are looking for security, this can make sense in order to maintain their standard of living in old age.

You save on tax. If you voluntarily pay an amount into your pension fund, you can generally deduct this from your taxable income. This reduces the amount of tax you pay in the year you made the payment. You also benefit from the often higher rate of interest earned on your pension fund assets compared with a normal bank account.

If you make a voluntary purchase into the pension fund, you can still withdraw some or all of your pension fund assets as a lump sum at a later date, though this will depend on the provisions applied by your pension fund, which you should definitely check before any purchase.

Payouts from pillar 3a and lump-sum withdrawals from your pension fund are taxed once only, separately from your other income and at a separate rate (i.e., the “capital benefit” tax rate). Making staggered withdrawals from your third pillar solution and pension fund will allow you to have an even more favourable impact on the amount of tax you pay.