Reducing your tax liability

In recent weeks, they have dropped through the letterbox again: the tax­return forms. It's wise to consider all the tax allowances available before completing the forms. Making good use of the legal leeway can significantly reduce your tax bill.

Take advantage of pillar 3a

One of the main options is retirement provision: last year's pillar 3a contributions can be fully deducted from taxable income - regardless of whether you keep your money in a 3a savings account or invest it in a 3a fund.

The maximum annual contributions have to be paid in to enjoy the full tax benefits. For employees with a pension fund, this amount stood at CHF 7,258 in 2025 and will remain the same in 2026. Self-employed people who don't have a ­pension fund can pay in up to 20% of their net income or a maximum amount of CHF 36,288.

Allowances for professionals

Another option is work-related­ expenses: for example, employees who travel to work by car or on public transport can deduct up to CHF 3,200 from their taxable income for direct federal tax purposes. Most cantons have even higher limits - while some don't set any at all.

Taxpayers can also deduct the cost of a bicycle – usually CHF 700 per year – from taxes for federal government and for all cantons (except Geneva).

Employees who eat out can claim a flat-rate tax allowance. This amounts to CHF 15 per day for federal government and cantonal taxes. If the employer provides a meal allowance or meals in the company canteen are subsidised, only half the allowance is permitted.

In addition to work-related training and further education costs, employees can claim a deduction of 3% of their net salary from federal government taxes for work clothing and equipment and expenses on IT or professional resources such as specialist books – a minimum amount of CHF 2,000 and a maximum of CHF 4,000 applies.

Tax savings for home owners

Homeowners benefit from various tax allowances: until the abolition of the imputed property rental value, they can not only deduct their mortgage interest from their taxable income, but also various maintenance costs for their residential­ property. These include, for example, renovations needed to maintain the property's value or eco-friendly and energy-saving home improvements.

Depending on which option is most favourable, either the actual costs or a flat-rate amount are allowable.

In addition to maintenance costs, anyone who owns a condominium can also deduct contributions to the condominium owners' property renovation and management fund­ – provided these funds are not used for ­investments that increase the property's value.

Finally, the most important thing of all: keep all your receipts and check the tax allowances available in your own canton with an advice centre or using an online calculator if in any doubt.

Barbara Russo is a client advisor at Migros Bank and an investment expert.