What can I deduct from my taxes? 7 tips to save on taxes!

Filing a tax return is not most people’s favourite activity, given the piles of receipts, complex forms and the fear of making mistakes it involves. But perspective is what counts: don't see it as a burden, but as work with a high hourly rate. If you invest time and check carefully, you can often save hundreds or even thousands of francs.

For the 2025 tax period (2026 return), there are various legal ways to reduce taxable income. The system rewards private provision, professional expenses and certain life situations. We highlight seven concrete, clearly explained ways that you can easily optimize your tax bill.

Tip 1: Pillar 3a – The classic option with a big impact

It’s the best-known and most effective tip: contributions to restricted provision (pillar 3a) are the most direct way to save taxes. The state promotes this by allowing you to deduct the entire amount from your taxable income.

How much can you deduct?

The maximum amounts are regularly adjusted. For the 2025 tax year, the maximum deduction for employees with a pension fund is, for example, CHF 7,258 (the figures provided by the Federal Social Insurance Office are authoritative). Higher limits apply to the self-employed without a pension fund, which are often up to 20 percent of their net earned income.

A calculation example

Assume your taxable income is CHF 80,000 and your marginal tax rate (the tax rate for every additional franc earned) is approx. 25 percent. If you pay the maximum amount into pillar 3a, your tax bill will decrease by around CHF 1,800 and the money is yours to keep. At the same time, your retirement assets grow tax-free, as no wealth, income or withholding taxes apply. The savings effect depends on your personal tax rate: the higher the income, the greater the saving.

Why Pillar 3a is indispensable

• Direct deduction from taxable income (high savings effect).
• No wealth tax on the assets during the term.
• Interest income and dividends remain exempt from withholding tax.
• Long-term asset accumulation for retirement or home ownership.

Account or fund?

Many savers leave their money in an interest-bearing account. However, with a long investment horizon (10 years or more), it’s worth taking a look at securities solutions. With a retirement fund, you participate in the development of the financial markets. The risk is higher than with an account as price fluctuations are possible. In the long term, however, the earnings opportunities are usually higher.

Tip 2: Purchasing into a pension fund (pillar 2)

While pillar 3a is a must, making contributions to your pension fund is often forgotten. Yet, pillar 2 offers huge savings potential, especially for people aged 50 or over, or those on higher incomes.

A voluntary purchase is possible in the event of a coverage gap. This frequently arises due to:

• Long duration of studies or late entry into professional life.
• Salary increases (the buy-in potential increases retroactively).
• Career breaks (parental leave, sabbatical, stay abroad).
• Divorce (division of retirement assets).

The amount paid in, just like in pillar 3a, can be fully deducted from your taxable income. Since this frequently involves larger sums (e.g. 20,000 francs), the tax effect is huge. It’s often worth spreading these purchases over several years to break tax progression multiple times. And it’s vital to plan purchases carefully if you’re nearing retirement or considering a lump-sum withdrawal as separate tax applies to such withdrawals.

Important: the contributions made are generally locked in for three years before they can be withdrawn as capital (e.g. for home ownership). So make sure you plan ahead.

Tip 3: Debts are a hassle, debt interest is useful

In Switzerland, you can declare debts in your assets (which lowers your wealth tax), but debt interest is much more interesting as you can deduct it from your income. This applies to:

• Mortgage interest (the largest item for homeowners).
• Interest on private loans.
• Credit card interest (if separately itemized and paid).

Only the pure interest costs are deductible, not the repayment of the loan (amortization).

However, there is a clear limit: lease rates are not deductible. The tax office considers a lease to be a rental, not a loan. If you lease a car, you can’t claim these costs for tax purposes. In the case of a car loan, however, the debt interest is deductible.

Make sure you receive the corresponding interest statements from your bank at the end of the year. As a rule, these are sent to you automatically or can be found in e-finance.

Tip 4: Professional expenses – more than just travel tickets

If you work, you’ll have expenses. These professional costs are important to bear in mind for your tax return. Many cantons grant lump-sum deductions that you can claim without receipts. However, check whether your actual costs are higher.

Travel costs

As a general rule, your commute is deductible. If you use public transport, you can deduct the costs of your travelcard (e.g. GA or point-to-point travelcard). In most cantons, you can only deduct car expenses if commuting by public transport is unreasonable (e.g. due to the major time savings involved). Note that for the federal tax deduction, this deduction is currently capped at CHF 3,200.

Off-premises meals

Unable to go home at lunchtime or use a canteen subsidized by your employer? Then you may claim a deduction for off-premises meals. The amount varies depending on the canton, but is often around CHF 15 per day or an annual lump sum of around CHF 3,200.

Travel and meal expenses can also be deducted for part-time employment or multiple workplaces – proportionally and depending on the situation.

Check your further professional expenses

• Professional clothing: only special clothing (e.g., safety shoes).
• Specialist literature & tools: if paid for by yourself.
• Home office: a strict topic. A deduction for the office room is usually only accepted if the employer doesn’t provide space and you’re obliged to use a separate room at home. “Voluntary” working from home usually doesn’t entitle you to a deduction.
• Third-party childcare costs (e.g., day-care or childminder) are not considered professional expenses, but can be claimed separately as a social deduction.

Tip 5: Basic and further training

Education is a worthwhile investment, which the state also recognizes. Costs for vocational education and continuing professional training aimed at improving qualifications are deductible, up to a maximum amount of CHF 12,000 per year (at federal level). Many cantons have adopted this limit. Costs for initial training, however, are not deductible. A prerequisite for the deduction is a first qualification at secondary level II (e.g., apprenticeship or Matura) or being over 20 years of age. The following are deductible:

• Course fees
• Teaching materials
• Examination fees
• Travel costs to the course location

Save all your invoices. Whether it's an MBA, a language course for the job, or an in-depth specialist course, if it’s job-related, the state will indirectly contribute to the costs.

Family and children: Don't forget these deductions

Those who have children can claim additional deductions. These include:

• Child deductions (varying amounts depending on the canton)
• Third-party childcare costs (daycare, after-school care, childminder)
• Education deductions for young people in training

These deductions directly reduce income and often amount to several thousand francs per year for families.

Tip 6: Property maintenance – Lump-sum or actual costs?

If you’re a homeowner, this is often the most complex decision in your tax return. You have to tax the imputed rental value as income. In return, you may deduct maintenance costs and mortgage interest.

For maintenance, you have an annual choice:

• Lump-sum deduction: Depending on the age of the property and the canton, this is usually ten to 20 percent of the imputed rental value. You can claim this deduction even if you have not carried out any renovations.
• Actual costs: Have you renovated the roof, replaced the heating, or painted? Then it’s worth adding up the actual invoices. If they exceed the lump sum, choose the actual deduction.

Good to know: Only value-preserving measures such as replacing a fridge are deductible. Value-increasing measures such as adding a conservatory are generally not deductible – unless they enable energy saving (e.g., solar installation, thermal insulation). Such energy efficiency renovations are deductible almost everywhere, even if they increase the value of the house.

Plan major renovations smartly. If you carry out a renovation at the turn of the year (e.g., December and January), you can spread the costs over two tax periods. This way, you break the progression in both years, instead of deducting “too much” in one year.

Online valuation tools can give you an idea of the market value of your property. However, the official value is relevant for tax purposes.

Choose the lump sum if: You had no or only very small repairs in the past year. The lump-sum deduction “gives” you a deduction without expenses.

Choose the actual costs if: You’ve carried out major renovations (façade, heating, floors) or made large investments in energy-saving measures. Collect all your receipts!

Tip 7: Medical expenses and donations

These are two categories that are often overlooked because the hurdles are somewhat higher.

Medical expenses

Out-of-pocket medical expenses (dentist, glasses, deductibles, co-payments) can be deducted – but only if they exceed a certain deductible. This is usually five percent of net income. For a family with an average income, several thousand francs often have to be accumulated before the first franc is deductible. In years with expensive treatments, however, it’s definitely worth doing your calculations. Health insurance premiums themselves can only be considered via a lump-sum deduction, which is often lower than the actual premium.

Donations

You’re rewarded for doing good. Donations to charitable organizations based in Switzerland are deductible. This is conditional on the donations amounting to at least CHF 100 in the tax year and not exceeding 20 percent of net income (depending on the canton). Keep the donation certificates that arrive by post at the beginning of the year.

Strategic outlook: Planning is key

Saving taxes is not a one-off event, but an ongoing process. Think long term:

• Staggered withdrawal: If you open several pillar 3a accounts, you can close them over several years when you retire. This breaks the tax progression on the capital withdrawal tax.
• Change of residence: Moving to a tax-friendly municipality often has the greatest effect – but it’s a life decision, not a purely financial one.
• Digital assistants: Use software. In the Canton of Bern, for example, “TaxMe” is very common and guides you through the process step by step. Other cantons offer similar solutions, often with direct access such as the BE-Login for various administrative services. These tools often import previous year's data, which prevents errors.

Conclusion: know what counts

The 2025/2026 tax return is your chance to actively manage your finances. Go through the points step by step and obtain any missing documents in good time. Use pillar 3a and pillar 2 during your working life as it's money that will give you more freedom in old age.

Legal notice

This article is for general information purposes and does not constitute tax advice. Tax laws are subject to change, and practices may vary depending on the canton. For complex portfolios or any uncertainties, we recommend consulting a qualified tax specialist.