How to Pay Swiss Taxes as an Expat (2025 Complete Guide)

Your first Swiss payslip arrives. You look at the number. Then you see how much is missing.

Welcome to Swiss taxes.

Here's the quick answer: Expats pay taxes through either Quellensteuer (source tax taken from your salary) or ordinary taxation (filing an annual return). Which one you're in depends on your permit type and income. B permit holders earning under CHF 120,000 pay source tax. C permit holders file tax returns.

Which Tax System Are You In?

Two questions. That's all you need.

Question 1: Do you have a C permit?

• Yes → You file a tax return (ordinary taxation)
• No → Keep going...

Question 2: Does your household earn over CHF 120,000/year?

• Yes → You file a tax return
• No → Quellensteuer (source tax taken from your paycheck)

That's it. Most expats start with Quellensteuer. It's simpler. Your employer calculates everything and sends it to the tax office. You don't file anything.

Understanding Quellensteuer (Source Tax)

Quellensteuer (KWEL-en-shtoy-er). Weird word. Simple concept.

Your employer takes tax directly from your salary every month. They calculate it based on your canton, income, and family situation. That's it. No forms to fill. No deadlines to track.

Who Pays Quellensteuer?

• B permit holders earning under CHF 120,000
• L permit holders (short-term)
• Cross-border workers (Grenzgänger)
• Asylum seekers

If you have a C permit (permanent residency), you switch to ordinary taxation automatically. Same if your income crosses CHF 120,000.

How Much Gets Deducted?

This is where it gets interesting. Your rate depends on:

1. Your canton – Zug is cheap. Geneva is expensive.
2. Marriage status – Married couples often pay less
3. Children – Kids = lower rate
4. Church membership – Church tax adds 0-8%

Here's a rough comparison:

Can You Get Money Back?

Yes. It's called Tarifkorrektur (rate correction).

If you have significant deductions the employer didn't account for, you can request a correction. Common deductions:

• Pillar 3a contributions (up to CHF 7,056)
• High commuting costs
• Large charitable donations
• Significant medical expenses

The catch: You must file the request by March 31 of the following year. Miss it? That money is gone forever.

📌 Quick Fact: The average Tarifkorrektur returns CHF 500-2,000. That's real money for 30 minutes of paperwork.

Filing an Ordinary Tax Return

If you're here, you either have a C permit, earn over CHF 120k, or chose to file voluntarily.

Good news: more deductions available. Bad news: more paperwork.

When Do You File?

You must file a tax return if:

• ✅ You have a C permit
• ✅ You earn over CHF 120,000/year
• ✅ You're self-employed (any amount)
• ✅ You own property in Switzerland
• ✅ You have investment income over certain thresholds

Step-by-Step Filing Process

Step 1: Get Your Forms (January)

Most cantons let you file online now. Zurich uses ZHprivateTax. Geneva uses GeTAX. Check your canton's tax office website.

If you prefer paper, forms arrive by mail in late January.

Step 2: Gather Your Documents (February)

You'll need:

• Lohnausweis (salary certificate from employer)
• Bank statements (December 31 balances)
• Pillar 2 pension statement
• Pillar 3a contribution receipts
• Receipts for deductions

Step 3: Calculate Deductions (February)

This is where you save money. Don't skip any.

Step 4: Submit by March 31

The deadline is March 31. Extensions are possible (request 1-6 months extra) but don't push it.

Deductions You MUST Claim

These are the big ones. Miss them and you're leaving money on the table.

Swiss Tax Calculator

Let me give you a rough idea of what to expect.

For a single person earning CHF 100,000 in Zurich:

• Federal tax: ~CHF 800
• Cantonal tax: ~CHF 7,500
• Municipal tax: ~CHF 3,500
• Total: ~CHF 11,800 (effective rate: ~12%)

For a married couple with 2 kids earning CHF 150,000 in Zurich:

• Federal tax: ~CHF 1,200
• Cantonal tax: ~CHF 9,000
• Municipal tax: ~CHF 4,200
• Total: ~CHF 14,400 (effective rate: ~10%)

Try our interactive calculator:

Want exact numbers? Use the official calculators:

• Federal calculator
• Or your canton's website

📊 Visual: Think of your gross salary as a pie. Federal takes a thin slice (~1%). Canton takes the biggest slice (~7-15%). Your town takes another piece (~3-5%). What's left is yours.

The 5 Tax Mistakes Every Expat Makes

I see these constantly. Don't be that person.

Mistake 1: Not Claiming Pillar 3a

This is the most common. You can claim many deductions, including:

• 3rd Pillar: Up to CHF 7,056/year (tax-free).
• Work Expenses: Commute (GA card), lunch allowance (if not provided).
• Medical Costs: Only if they exceed 5% of taxable income (rare).
• Debt Interest: Interest on loans/credit cards is deductible.

The Pillar 3a contribution alone allows you to deduct 100% of it from your taxable income. The math: At a marginal tax rate of 35%, that's CHF 2,470 in tax savings. Every year.

If you're not doing this, fix it today. Open an account with VIAC, Finpension, or your bank.

Mistake 2: Missing the March 31 Deadline

Quellensteuer corrections? March 31. Tax return filing? March 31.

There are no extensions for corrections. Tax returns get extensions, but you need to request them.

Miss March 31 for a correction, and that refund is gone. Forever.

Mistake 3: Ignoring Dual-Tax Treaties

Many countries have tax treaties with Switzerland. If you're paying taxes on the same income in two countries, you're likely doing something wrong.

Common situations:

• Dividends from home country stocks
• Rental income from property abroad
• Pension from previous country

Get professional advice if this applies to you. The treaty may exempt income or allow credits.

Mistake 4: Assuming You Pay Where You Work

Nope. You pay taxes where you live. Your Wohnort (residence), not your Arbeitsort (workplace).

Work in Zug but live in Zurich? You pay Zurich rates.

This matters because some people commute from higher-tax cantons to lower-tax ones for work, thinking they'll get the lower rate. They won't.

Mistake 5: Not Keeping Receipts

Deductions without proof = no deduction.

Keep receipts for:

• Pillar 3a contributions (bank provides statement)
• Professional training
• Medical expenses
• Charitable donations
• Work-related expenses

Digital is fine. The tax office accepts PDFs.

When to Hire a Tax Advisor

Most expats can handle their own taxes. The forms are in German/French/Italian, but the canton websites often have English guides. Online filing software walks you through it step by step.

But hire a professional if:

• You have multiple income sources
• You own property (especially abroad)
• You're self-employed
• You're a cross-border worker
• You have complex investment portfolios
• It's your first year and you're overwhelmed

Expected costs: CHF 200-600 for a basic tax return. More for complex situations.

Where to find one: Ask in expat Facebook groups, or try firms like SwissTax or Taxolution that cater to expats.

⚠️ Watch Out: Some advisors charge a percentage of your refund. Avoid these – a flat fee is fairer and you know what you're paying upfront.

Conclusion: Your Tax Action Plan

Swiss taxes are simpler than they look. Here's what to do:

1. Figure out your system – Quellensteuer or ordinary taxation?
2. Start a Pillar 3a – Maximum deduction, no-brainer
3. Mark March 31 – The deadline that matters
4. Keep receipts – Everything work-related, medical, donations

The Swiss tax system isn't trying to trick you. The rates are transparent. The deductions are generous. You just need to claim them.

📄 Next Step: Download our Swiss Tax Checklist PDF – Every deduction, every deadline, one page.

Read Next

• Pillar 3a: The Complete Guide for Expats – How to save CHF 2,000+/year in taxes
• Swiss Tax Deadlines 2025 – Every date you need to know
• Find a Tax Advisor – Our vetted recommendations

Frequently Asked Questions

When are Swiss taxes due?

Tax returns are due March 31. Most cantons offer extensions of 1-6 months if you request them. Quellensteuer is deducted monthly from your salary – no action needed on your part.

Do expats pay lower taxes in Switzerland?

Not specifically. There's no "expat rate." You pay the same as Swiss citizens based on your canton, income, and family situation. What people mean is that Swiss taxes are generally moderate compared to other European countries. But don't forget social contributions (AHV, etc.) add another ~10%.

Can I file Swiss taxes online?

Yes! Most cantons offer online filing:

• Zurich: ZHprivateTax
• Geneva: GeTAX
• Bern: TaxMe
• Vaud: VaudTax

The software guides you through everything and pre-fills data where possible.

What is Quellensteuer?

Quellensteuer is source tax – tax deducted directly from your salary by your employer before you receive it. It applies to non-permanent residents (B, L permits) earning under CHF 120,000. Your employer calculates and pays it; you don't file anything.

Can I switch from Quellensteuer to ordinary taxation?

Yes, you can request ordinary taxation even if you're in Quellensteuer. This makes sense if you have large deductions (Pillar 3a, commuting, etc.) that would result in a refund. File the request by March 31.

Last updated: January 2025. Tax rates and limits may change – always verify with your cantonal tax office.