Last updated: February 2026

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What’s New in 2026

Several significant changes affect withholding taxpayers this year:

• March 8, 2026 referendum on individual taxation: Swiss voters decide whether to end joint taxation for married couples. If passed, the entire tariff system would eventually be restructured (implementation from 2032).
• France–Switzerland telework agreement now permanent: Cross-border workers living in France may telework up to 40% from home while remaining fully taxable in Switzerland (effective January 1, 2026).
• Germany–Switzerland DTA amendment in force: New 20% commute threshold and 45-day non-return cap for cross-border commuters (effective January 1, 2026).
• Geneva income tax cut: Geneva reduced income tax by 5–11% effective 2025, directly lowering withholding tax rates for Geneva-based workers.
• Updated withholding tariffs: Median salary adjusted to CHF 5,875/month, pension fund deduction increased to 6.5%, affecting all cantonal tariff tables.
• Salary certificate guideline changes: New reporting requirements for car allowances, gifts, and part-time employment effective January 1, 2026.
• Federal tax interest rates reduced: Default/refund interest rates dropped to 4.0%, voluntary advance payment interest reduced to 0.0%.

What Is Swiss Withholding Tax?

Swiss withholding tax, known as Quellensteuer in German, impôt à la source in French, and imposta alla fonte in Italian, is the way Switzerland collects income tax from most foreign employees. Rather than filing an annual tax return and settling up afterwards, your employer deducts tax directly from your salary each month and remits it to the cantonal tax authority.

This isn’t a separate or additional tax. It replaces the ordinary income tax system for eligible taxpayers. The amount withheld is designed to approximate what you would pay under the regular Swiss tax system, covering federal, cantonal, and municipal income tax in a single deduction.

The legal basis sits in the Federal Act on Direct Federal Tax (DBG, Art. 83–101) and the Federal Tax Harmonization Act (StHG, Art. 32–36). The governing administrative circular is ESTV Kreisschreiben Nr. 45 (dated June 12, 2019), which remains current as of 2026 with no major amendments.

Common misconception: Many newcomers confuse Quellensteuer with Verrechnungssteuer. They are entirely different taxes. Quellensteuer is withholding tax on employment income for foreign workers without permanent residence. Verrechnungssteuer is a 35% federal withholding tax on investment income (dividends, interest, lottery winnings) that applies to everyone, including Swiss citizens. If you see 35% deducted from a dividend payment, that’s Verrechnungssteuer, not Quellensteuer.

Who Has to Pay Withholding Tax?

Swiss withholding tax applies to foreign nationals employed in Switzerland who do not hold a C permit (permanent residence) and are not married to a Swiss citizen or C permit holder. The most common categories include:

Residents subject to withholding tax:

• B permit holders (residence permit) employed in Switzerland
• L permit holders (short-term residence) working in Switzerland
• Asylum seekers (N permit) and provisionally admitted persons (F permit) with employment
• Any other foreign national without permanent residence who earns employment income in Switzerland

Cross-border commuters (Grenzgänger) subject to withholding tax:

• Employees living in a neighboring country (France, Germany, Italy, Austria, Liechtenstein) who commute to work in Switzerland
• The specific tax treatment depends on the Double Taxation Agreement (DTA) between Switzerland and the employee’s country of residence (see the cross-border section below)

Not subject to withholding tax:

• Swiss citizens (regardless of permit status)
• C permit holders (permanent residence)
• Foreign nationals married to or in a registered partnership with a Swiss citizen or C permit holder. These persons are treated as ordinary taxpayers and must file an annual tax return.
• Self-employed individuals (they are subject to ordinary taxation)

Use our interactive tool below to check whether withholding tax applies to your situation:

When Does Withholding Tax End?

You stop paying withholding tax and transition to the ordinary tax system when:

1. You receive a C permit (permanent residence). This typically happens after 5 or 10 years of continuous residence in Switzerland, depending on your nationality. The transition takes effect from the month following the permit change. You must then file an annual tax return.
2. You marry a Swiss citizen or a C permit holder. You move to ordinary taxation from the following month.
3. You become a Swiss citizen. Naturalization moves you into the ordinary system.

In all cases, the transition means you'll file an annual tax return and settle your taxes after the year ends, rather than having them deducted monthly from your salary.

Do Taxpayers Ever Need to File a Tax Return?

Yes, and since the 2021 reform, the rules are clearer but also stricter.

Mandatory ordinary assessment (nachträgliche ordentliche Veranlagung, NOV)

You must file a full tax return if any of the following apply:

• Your gross annual employment income exceeds CHF 120,000 (this applies to each spouse individually for married couples). Above this threshold, withholding tax becomes an advance payment against your final tax bill calculated through a full return.
• You have significant non-employment income (e.g., rental income, investment income beyond standard amounts). Canton-specific thresholds apply. For example, Zurich triggers a mandatory NOV at CHF 3,000 in additional non-wage income.
• You have substantial taxable wealth. Again, thresholds vary by canton. In Zurich, the trigger is CHF 80,000 for single taxpayers or CHF 160,000 for jointly taxed couples.

The CHF 120,000 threshold has remained unchanged since the 2021 reform and is not indexed for inflation.

Cantonal thresholds for secondary factors

Beyond the uniform CHF 120,000 income trigger, each canton sets its own thresholds for when non-employment income or wealth triggers a mandatory NOV. The variation is significant. Some cantons publish clear numeric thresholds; others leave it vague and require taxpayers to contact the cantonal tax office.

Notable examples: Schwyz has the lowest asset threshold at CHF 50,000, while Bern's is CHF 150,000. Geneva and Vaud trigger NOV for any taxable fortune at all, however small. Thurgau explicitly states that NOV applies regardless of amount for any non-QS income or assets. Bern has the most detailed triggers, including rules for foreign property ownership.

Check whether secondary factors trigger mandatory filing in your canton:

Voluntary ordinary assessment

If you earn less than CHF 120,000 and none of the mandatory triggers apply, you can choose to file a regular tax return. This is called a voluntary ordinary assessment (freiwillige ordentliche Veranlagung).

Why would you want to? Because the standard withholding tax calculation includes only flat-rate deductions. If you have significant personal deductions that exceed these flat-rate amounts, filing a return could result in a lower tax bill. Common deductions that can make a voluntary NOV worthwhile include:

• Pillar 3a contributions (up to CHF 7,258 for 2026 for employees with a pension fund)
• Pension fund buy-ins (Einkäufe in die 2. Säule)
• Childcare costs
• High commuting expenses
• Alimony payments
• Significant medical expenses exceeding the cantonal threshold

Critical warning: Since the 2021 reform, requesting a voluntary ordinary assessment is irrevocable. Once you file, you must continue filing every subsequent year. You cannot switch back to pure withholding tax if the return turns out disadvantageous. This is particularly important if you live in a municipality with a higher-than-average tax multiplier, since withholding tax rates use a cantonal weighted average rather than your specific municipality's rate.

Deadline: The request must be submitted by March 31 of the year following the tax year. This is a forfeiture deadline with no extensions possible. In Zurich, the request and any tariff correction applications must be submitted electronically through ZHServices.

When a voluntary NOV might NOT save you money

Quellensteuer rates are based on a cantonal weighted average of municipal tax multipliers. If you live in a municipality where the actual tax rate is higher than this weighted average, and you don't have substantial additional deductions, filing a voluntary ordinary assessment could result in a higher tax bill. This is one of the most common surprises for expats who switch without careful analysis.

Practical tip: Before committing to a voluntary NOV, use your canton's online tax calculator (e.g., the Zurich Steuerrechner or Comparis.ch) to estimate your ordinary tax burden, then compare it to your current withholding. Only switch if the difference is meaningfully in your favor.

What Happens to Your Withholding Tax After Filing

This is one of the most important concepts for withholding taxpayers to understand, and one that many new clients find surprising. When a mandatory or voluntary NOV is triggered, the entire nature of your Quellensteuer changes.

Without NOV: Quellensteuer as your final tax

If you earn under CHF 120,000, have no significant outside income or wealth, and do not request a voluntary assessment, then the withholding tax your employer deducts each month is your final tax liability. No tax return, no true-up, no further payments. It is a closed system. The monthly deductions settle your income tax obligation in full.

With NOV: Quellensteuer becomes a prepayment

The moment a mandatory or voluntary NOV applies, the withholding tax your employer has been deducting all year stops being a final settlement. Instead, it is reclassified as an advance payment (Vorauszahlung) toward your actual tax liability, which will be determined through the ordinary assessment process.

Here is how that works in practice:

1. During the tax year, your employer continues to deduct Quellensteuer from your monthly salary as normal. Nothing changes in terms of the monthly payroll process.
2. After the year ends, you file a full tax return (Steuererklärung). This return covers all your income (employment, investments, rental, etc.), your deductions, and your taxable wealth.
3. The tax authority issues an assessment (Veranlagungsverfügung), calculating your actual tax liability based on your return. This assessment covers both the Direct Federal Tax (direkte Bundessteuer, DFT) and the Cantonal/Communal Tax (Staats- und Gemeindesteuer, CCT).
4. The total Quellensteuer already deducted is credited against this final liability. The credit follows a specific order: it is applied first against the Direct Federal Tax, and whatever remains is then credited against the Cantonal and Communal Tax.
5. Settlement: If the total QST exceeds your final liability, you receive a refund. If it falls short, you owe the difference.

Why the credit order matters

The DFT-first, CCT-second credit allocation is not just an administrative detail. Because the DFT and CCT have different rates and brackets, the way the prepayment is distributed can affect the balance you owe or are refunded at each level. In practice, most taxpayers simply see a net result, but it is worth understanding when reviewing your assessment.

A practical example

Suppose you are a Tariff A0N employee in Zurich earning CHF 150,000 gross. Your employer deducts roughly CHF 16,000 in Quellensteuer over the year. Because your income exceeds CHF 120,000, you file a mandatory NOV. The tax authority calculates your actual federal and cantonal/communal tax at CHF 18,500 total. Your CHF 16,000 in QST is credited first against the DFT portion (say CHF 3,200 federal), leaving CHF 12,800 to be credited against the CCT portion (say CHF 15,300 cantonal/communal). You would owe the remaining CHF 2,500 difference.

Had you made substantial Pillar 3a contributions or pension fund buy-ins, the actual tax liability could have been lower, potentially resulting in a refund instead.

How to Reclaim Overpaid Withholding Tax

If your employer applied the wrong tariff code, or if factual errors led to excessive withholding, you can request a tariff correction (Tarifkorrektur). Since the 2021 reform, tariff corrections are limited to fixing factual errors: incorrect marital status, wrong number of dependents, or incorrect church membership flag.

Tariff corrections are not available for claiming additional deductions like Pillar 3a or commuting costs. For those, you need to file a voluntary ordinary assessment (see above).

The correction must be requested by March 31 of the following year. Corrections are submitted to the cantonal tax authority, in most cantons now through online portals.

The Tariff System: Understanding Your Tax Code

Unlike a single unified tax rate, Swiss withholding tax is calculated based on tariff tables that vary by canton, marital status, number of dependents, and income level. Your employer assigns you a tariff code that determines which rate table applies.

Tariff categories

Code	Who it applies to	Notes
A	Single, divorced, separated, or widowed persons without dependents	The basic tariff for individuals
B	Married or registered partners where only one spouse earns income	Single-earner household tariff
C	Married or registered partners where both spouses earn income	The rate accounts for the spouse's income through the median salary method
D	Secondary employment income	Applied to second jobs alongside the main employment
H	Single parents with dependent children	Provides an allowance for child-related expenses

Each letter is followed by a number indicating the count of dependent children (e.g., A0 = single, no children; H2 = single parent with two children; B1 = married single-earner with one child).

The final character is Y or N for church membership: Y if you're a member of a recognized Swiss church (Reformed, Roman Catholic, or Old Catholic), N if not. Church tax adds roughly 0.5–2% depending on the canton.

So a complete tariff code looks like C2N, meaning married dual-earner with two children, no church membership.

Use our interactive wizard to determine your correct tariff code:

Tariff C and the median salary method

Tariff C deserves special explanation because it causes the most confusion. When both spouses work, the withholding rate for each spouse's income depends not just on their own salary but also on the other spouse's income. Since the employer typically doesn't know the spouse's exact salary, the system uses a simplified approach:

• A median salary (CHF 5,875/month for 2026, up from CHF 5,775 in 2025) is assumed for the other spouse.
• This median is used to position the taxpayer on the progressive rate curve, which determines their marginal rate.
• If the actual spouse's income differs significantly from the median, the resulting withholding may be too high or too low. This gets corrected through the mandatory ordinary assessment (for incomes above CHF 120,000) or can be adjusted via voluntary NOV.

How church tax works

If you're a member of one of Switzerland's officially recognized churches (Reformed, Roman Catholic, or Old Catholic), your tariff code ends with Y and includes church tax. If you're not a member, whether you're non-religious, belong to a different denomination, or belong to a religion not officially recognized, your code ends with N.

Church tax typically adds between 0.5% and 2% to your total withholding rate, depending on the canton. If you've been assigned a Y code incorrectly, you can request a correction through the tariff correction process before March 31.

Withholding Tax Rates by Canton

Swiss withholding tax rates vary dramatically between cantons. The difference between the lowest-tax and highest-tax cantons can be 10 percentage points or more at the same income level.

Key factors that influence your rate

• Canton of employment (not residence; for withholding tax, the employer's location determines which cantonal rate applies)
• Tariff category (A, B, C, H, D)
• Gross monthly salary (rates are progressive, so higher income means a higher percentage)
• Church membership (Y adds church tax, N excludes it)

2026 rate comparison: Single (Tariff A0N), no church tax

Canton	CHF 100k	CHF 250k	CHF 500k	CHF 800k
Zug	4.43%	12.41%	16.72%	18.34%
Schwyz	5.97%	12.21%	16.94%	18.35%
Zurich	8.66%	20.37%	27.07%	30.50%
Lucerne	11.28%	18.77%	24.54%	25.72%
Geneva	13.31%	23.99%	30.48%	33.59%
Bern	14.30%	24.50%	30.77%	33.46%

2026 rate comparison: Married single-earner (Tariff B0N), no church tax

Canton	CHF 100k	CHF 250k	CHF 500k	CHF 800k
Zug	2.34%	9.31%	15.51%	17.51%
Schwyz	4.11%	10.69%	15.11%	17.52%
Geneva	6.04%	19.20%	26.91%	30.44%
Zurich	6.18%	17.24%	24.71%	29.30%
Lucerne	8.01%	16.91%	23.66%	25.04%
Bern	10.71%	21.30%	28.67%	32.07%

2026 rate comparison: Married dual-earner (Tariff C0N), no church tax

Canton	CHF 100k	CHF 250k	CHF 500k	CHF 800k
Zug	4.28%	11.58%	16.16%	17.84%
Schwyz	5.80%	12.00%	15.47%	17.80%
Zurich	9.40%	19.12%	25.57%	29.57%
Lucerne	10.62%	18.49%	23.91%	25.15%
Geneva	12.38%	21.81%	27.92%	31.01%
Bern	14.09%	23.29%	29.40%	32.40%

Rates are approximate and based on 2025/2026 cantonal tariff tables without church tax. Verify with your cantonal tax office for exact calculations. For Tariff C, rates assume a 50/50 income split.

Explore all 6 cantons, all tariffs, and all income levels interactively:

Notable cantonal developments for 2026

Geneva: Significant tax reduction. Geneva voters approved a 5.3–11.4% income tax reduction in November 2024, effective from January 1, 2025. This directly lowered withholding tax rates. Middle-income earners benefit from reductions of around 11%, while the highest brackets see approximately 5%. Despite this cut, Geneva remains one of the highest-taxed cantons for individuals. A worker earning CHF 120,000 under Tariff A0 can expect roughly CHF 1,000–1,500 less in annual withholding compared to pre-reform rates.

Schwyz: Lowest rates in Switzerland. Schwyz continues to have the lowest top income tax rate of any canton at 21.98%, having reduced it by a further 0.61 percentage points in 2025.

Overall trend for 2026: Among Switzerland's 26 cantons, 14 recorded a decrease in the personal tax burden for 2026, while 12 recorded an increase. On average, direct taxes account for roughly one-fifth of income.

The 2021 Withholding Tax Reform

On January 1, 2021, Switzerland implemented a major overhaul of the withholding tax system. This reform, which amended the DBG and StHG, standardized rules across all cantons and brought significant changes for both employers and employees.

Key changes from the 2021 reform

Uniform CHF 120,000 threshold. Before 2021, different cantons had different income thresholds for when a withholding taxpayer needed to file an ordinary return. The reform standardized this at CHF 120,000 gross annual employment income nationwide. Above this threshold, filing is mandatory.

Irrevocable voluntary ordinary assessment. Previously, some cantons allowed taxpayers to request ordinary assessment one year and go back to pure withholding the next. Since 2021, once you request a voluntary NOV, you must continue filing annually. There is no going back.

End of tariff correction for personal deductions. Before 2021, many cantons allowed taxpayers below the CHF 120,000 threshold to claim deductions like Pillar 3a through a simple tariff correction process. Since 2021, tariff corrections are limited to factual errors (wrong marital status, wrong child count, etc.). To claim personal deductions, you must file a full voluntary ordinary assessment, with all the consequences that entails.

Quasi-residency for EU/EFTA nationals. The reform introduced Art. 99a DBG, allowing EU/EFTA nationals whose worldwide income is at least 90% taxable in Switzerland to request treatment equivalent to Swiss residents. This primarily benefits cross-border workers (especially in Geneva) who can claim the same deductions and tax treatment as ordinary residents.

Standardized tariff determination. Employers became responsible for determining the correct tariff code based on employee-reported data. This was previously handled more variably across cantons. The 2021 reform unified the process under Circular No. 45.

Economic employer concept. The reform clarified that for international employee assignments, the "economic employer" (the entity that bears the cost and benefits from the work) determines withholding tax obligations, not just the formal contractual employer. This primarily affects multinational corporations with secondment arrangements.

Developments Since 2021

2022–2023: Early implementation and court cases

The first years after the reform focused on practical implementation. Cantons developed new online portals, and the Federal Supreme Court issued early guidance on the reform's application. A notable ruling from April 2021 (BGer 2C_625/2020) addressed the equal treatment of EU/EFTA nationals, confirming the scope of quasi-residency rights.

2024: Federal Act on the Taxation of Telework

The most significant legislative development was the Federal Act on the Taxation of Telework in International Relations, which Parliament approved on June 14, 2024 and the Federal Council brought into force on January 1, 2025. This act amended Art. 5 DBG and Art. 4 StHG to create a domestic legal basis for Switzerland to tax cross-border telework, filling a critical gap that emerged during and after the COVID-19 pandemic.

Previously, the Federal Supreme Court's position was that Switzerland could only tax income attributable to days physically worked on Swiss soil. The new law allows Switzerland to tax telework days performed abroad, provided a bilateral agreement allocates the right of taxation to Switzerland. As of 2025, this is operative for France and Italy. For Germany, Austria, and Liechtenstein, the domestic legal basis exists but has no practical application yet (no bilateral telework tax agreement).

2025: DTA amendments and new agreements

Multiple Double Taxation Agreement amendments entered into force:

• The France–Switzerland permanent telework framework became effective July 24, 2025 (substantive provisions from January 1, 2026).
• The Germany–Switzerland DTA amendment protocol entered into force November 27, 2025 (most provisions from January 1, 2026).
• Italy ratified the Italy–Switzerland telework protocol in December 2025 (Law No. 217/2025), with formal entry into force expected mid-2026.

2026: Current status

The 2026 federal withholding tax tariffs were published between December 3 and December 22, 2025, with two key adjustments: the median salary used in the Tariff C calculation increased from CHF 5,775 to CHF 5,875/month, and the pension fund deduction embedded in tariff calculations increased from 6.0% to 6.5% of gross salary. These adjustments flow through to all cantonal tariff tables.

Salary certificate guideline changes took effect January 1, 2026. Key updates include an increased flat-rate car allowance (CHF 0.75/km, up from CHF 0.70/km), a new CHF 600/year threshold for non-declarable gifts and event tickets, a requirement to note part-time employment status, and clarified rules for expense regulations across cantons.

Federal tax interest rates were adjusted for 2026: default and refund interest dropped to 4.0% (from 4.5% in 2025), and voluntary advance payment interest was reduced to 0.0% (from 0.75%).

Court decisions (2024–2025)

BGer 9C_635/2023 (October 3, 2024), beneficial ownership landmark. The Federal Supreme Court ruled that a Danish bank was the beneficial owner of interest from Swiss bonds acquired through cross-currency swaps, reversing its prior restrictive approach. While this concerns Verrechnungssteuer (anticipatory tax) rather than employment Quellensteuer, it is the most significant Swiss withholding tax court decision in recent years.

BGer 6B_90/2024 and 6B_93/2024 (February 3, 2025), withholding tax evasion. The court upheld criminal convictions for intentional withholding tax evasion of approximately CHF 200,000. The responsible corporate officer and the tax consultant who instigated the evasion were both convicted.

BGer 9C_655/2024 (May 2025), employee participation plans. Confirmed that employee participation plans are subject to withholding tax at the time of exercise, and clarified the vesting period for tax purposes.

Cross-Border Workers and Teleworking

The post-COVID shift to remote and hybrid work fundamentally changed the landscape for cross-border commuters. Switzerland has responded with a series of bilateral agreements that are now either in force or taking effect in 2026.

France–Switzerland (permanent agreement from January 1, 2026)

The transitional agreement governing 2023–2025 has been replaced by a permanent framework:

• Cross-border workers living in France may telework up to 40% of their working time from France (including up to 10 days of temporary business assignments) while remaining fully taxable in Switzerland.
• Above 40%, the days worked in France become taxable in France, and social security obligations may shift (French social security applies if telework reaches 50% or more).
• New employer reporting obligation from 2026: Swiss employers must report the telework rate for each employee residing in France to the AFC. The first automatic exchange of salary data between Swiss and French authorities is expected in early 2027.
• Switzerland provides additional financial compensation to France under the agreement.

Germany–Switzerland (DTA amendment from January 1, 2026)

The amending protocol entered into force on November 27, 2025:

• A new 20% commute threshold defines "regular return": the employee must physically commute to Switzerland on at least 20% of agreed working days per year to maintain cross-border commuter (Grenzgänger) status.
• Home office days are not non-return days. Working from home in Germany does not count as a failure to return, meaning a cross-border commuter can effectively telework up to 4 days per week without losing their commuter status.
• The previous 60-day cap on non-return days has been replaced with a 45 working day limit.
• Important distinction: There is still no bilateral tax agreement between Switzerland and Germany specifically on teleworking (unlike the France and Italy models). Switzerland cannot tax days worked from German soil. The DTA amendment addresses commuter status, not the allocation of taxing rights over telework days.

Italy–Switzerland (telework protocol, ratified late 2025)

Italy ratified the protocol amending the 2020 Frontier Workers Agreement in December 2025 (Law No. 217/2025):

• A 40% telework threshold (matching the French model) allows frontier workers to telework from Italy for up to 40% of their working time without affecting their cross-border commuter status.
• The protocol also introduces a simplified substitute tax option for new Italian frontier workers: 25% of Swiss income tax paid, eliminating double-tax paperwork.
• Formal entry into force awaits the exchange of ratification instruments, expected mid-2026. Until then, the interim 25% threshold from the November 2023 friendly agreement continues to apply.

Social security considerations

For EU/EFTA countries that signed the multilateral Framework Agreement (effective July 1, 2023), cross-border workers can telework from their country of residence for up to 49.9% of working time while remaining affiliated to the employer country's social security. This applies to Germany, Austria, and Liechtenstein. France and Italy have not signed this multilateral agreement; separate bilateral rules apply.

Employers must secure A1 certificates for teleworkers between 25% and 49.9%.

The March 8, 2026 Individual Taxation Referendum

On March 8, 2026, Swiss voters decide on the Federal Act on Individual Taxation, potentially the most significant structural change to Swiss taxation in decades. The vote directly affects every section of this guide about married-couple tariffs.

What would change

The law provides that every natural person is taxed individually, regardless of marital status, at all levels of government. Married couples and registered partners would no longer be taxed jointly. Each spouse would file a separate return, declare their own income, and be taxed under a single uniform tariff.

For withholding tax specifically:

• Tariff B (married, single-earner) and Tariff C (married, dual-earner) would be abolished or restructured, since there would be no distinction between married and unmarried taxpayers.
• The marriage deduction (Verheiratetenabzug, currently CHF 2,600 for federal tax) and the dual-earner deduction would become obsolete.
• The child deduction for direct federal tax would increase from CHF 6,700 to CHF 12,000 per child to compensate.
• Employers would determine withholding based solely on the individual's own income and personal circumstances, without reference to spousal income.

Timeline and practical impact

If approved, the earliest implementation date is 2032. Cantons need years to adapt systems, forms, and administration. The Conference of Cantonal Finance Directors estimates 1.7 million additional tax returns annually. For now, the current tariff system remains fully in effect. No immediate action is required.

Who benefits, who loses: Dual-income married couples with similar earnings should expect tax relief under individual taxation, since each spouse's income would be taxed at a lower marginal rate. Single-earner married couples (or those with very unequal incomes) could see their tax burden increase, since they currently benefit from the joint assessment's income-splitting effect.

A January 2026 poll showed 64% of voters in favor. Revenue impact is estimated at CHF 630 million in reduced federal tax revenue.

Common Misconceptions About Swiss Withholding Tax

"Quellensteuer is an extra tax on foreigners." It is not. Quellensteuer replaces the ordinary income tax system. It's the same tax, collected differently. The total amount is designed to approximate what you'd pay under ordinary taxation.

"If I earn under CHF 120,000, I don't need to worry about a tax return." Not necessarily. Cantonal thresholds for wealth and non-wage income can also trigger mandatory filing. In Zurich, owning taxable assets exceeding CHF 80,000 (single) or CHF 160,000 (married) triggers a mandatory return, as does non-wage income exceeding CHF 3,000.

"Quellensteuer rates are based on my municipality." Not exactly. Withholding tax rates use a cantonal weighted average of municipal tax multipliers, not your specific municipality's rate. This means you may pay slightly more or less than you would under ordinary taxation depending on where exactly in the canton you live.

"My employer handles everything, I don't need to check." Employers determine the tariff code but can make errors, especially regarding marital status changes, spouse's employment status, or church affiliation. Always verify your payslip shows the correct tariff code.

"Once I file a voluntary tax return, I can stop if it's not beneficial." Incorrect since the 2021 reform. Once you enter the ordinary assessment system through a voluntary NOV request, you must continue filing every subsequent year.

"Quellensteuer already includes all deductions, so I can't save anything." The rates include only standard flat-rate deductions. Significant personal deductions (Pillar 3a, pension buy-ins, childcare, alimony) are not included and can only be claimed through a voluntary ordinary assessment.

"The CHF 120,000 threshold is based on net income." No, it's based on gross employment income, before any deductions.

Practical Checklists

Verifying your employer's tariff application

Your payslip should show a tariff code like A0N, B2Y, or C0N. Here's how to verify it's correct:

• Letter matches your status: A = single/divorced/widowed without dependents, B = married single-earner, C = married dual-earner, H = single parent, D = secondary employment
• Number matches your dependent children count (0, 1, 2, etc.)
• Y or N matches your church membership (Y = member of a recognized Swiss church, N = not a member)
• If your spouse started or stopped working, notify your employer immediately since this changes between B and C tariffs
• If you married, divorced, or had a child, the tariff change takes effect from the following month
• If you moved cantons, your employer should apply the new canton's tariff from the date of the move

Deciding whether to file a voluntary ordinary assessment

Consider filing if you have significant deductions not captured by Quellensteuer, such as large Pillar 3a contributions, pension fund buy-ins, high commuting costs, or childcare expenses. First, estimate your ordinary tax using your canton's calculator and compare to your current withholding. Only switch if the savings are meaningful; remember, this decision is irrevocable.

Be cautious if you live in a high-tax municipality within your canton and have few additional deductions. The weighted-average approach of Quellensteuer may already be favorable to you.

Documents to gather for an ordinary assessment

If you decide to file, you'll need: your Lohnausweis (salary certificate) from each employer, bank and securities account statements (December 31 balances), Pillar 3a contribution certificates, pension fund buy-in receipts, health insurance premium statements, childcare receipts, evidence of commuting costs, documentation of any foreign income, and your Quellensteuerbescheinigung (withholding tax certificate).

Key Dates for 2026

Date	Event
January 1, 2026	2026 withholding tariffs in effect (all cantons)
January 1, 2026	France–Switzerland permanent telework framework takes effect
January 1, 2026	Germany–Switzerland DTA amendment provisions take effect
January 1, 2026	New salary certificate guidelines in effect
January 1, 2026	Federal tax interest rates adjusted (4.0% / 0.0%)
March 8, 2026	Swiss vote on individual taxation referendum
March 31, 2026	Deadline for 2025 voluntary NOV requests and tariff corrections
Mid-2026 (expected)	Italy–Switzerland telework protocol formal entry into force

Cantonal Online Portals for Withholding Tax

Several cantons have launched or upgraded dedicated online portals for withholding tax matters:

• Zurich: eQuest portal via ZHServices Business, for monthly settlements, correction requests, and NOV applications
• Aargau: Dedicated Quellensteuer-Portal launched 2023; PDF forms phased out from May 2025
• Glarus: eQst.GL launched late 2024; paper submissions accepted until August 2026
• Zug: Online settlement tool (Online-Abrechnung Quellensteuer) for digital submission
• Geneva: 2026 barèmes (rate tables) published at ge.ch, with AFC calculette for exact rates

FAQ

How is Swiss withholding tax calculated? Your employer applies the tariff rate corresponding to your code (e.g., A0N) and gross monthly salary from the cantonal tariff table. The rate includes federal, cantonal, and municipal income tax in a single percentage. The amount is deducted from your salary before you receive it.

Can I deduct my Pillar 3a contribution from Quellensteuer? Not directly through the tariff system. Since the 2021 reform, personal deductions like Pillar 3a can only be claimed through a voluntary ordinary assessment (full tax return). This is an irrevocable decision: once you file, you must continue filing every year.

What happens when I earn over CHF 120,000? You must file an annual tax return. Your withholding tax becomes an advance payment against the final tax calculated through the ordinary assessment. The QST you've already paid is credited first against the Direct Federal Tax, then against the Cantonal/Communal Tax. You may owe additional tax or receive a refund depending on your deductions and the difference between withholding rates and your actual tax burden.

Do I still pay Quellensteuer after the March 31 deadline passes? Yes. Withholding continues every month regardless of deadlines. March 31 is only the deadline for submitting correction requests or voluntary ordinary assessment applications for the preceding tax year.

How does Quellensteuer work on bonuses? Bonuses are subject to withholding tax. The employer adds the bonus to the regular salary for that month and applies the tariff rate to the total. Because Swiss withholding tax is progressive, a large bonus in a single month can temporarily push you into a higher rate bracket. However, this typically evens out over the year, and for those above CHF 120,000, any over-withholding is reconciled through the mandatory ordinary assessment.

Is church tax included in my Quellensteuer? Only if your tariff code ends with Y. If you're not a member of a recognized Swiss church (Reformed, Roman Catholic, or Old Catholic), ensure your code ends with N. If it's wrong, request a tariff correction before March 31.

What if I change cantons mid-year? You'll be taxed under the old canton's rates until the move date, and the new canton's rates afterwards. The transition happens at the employer level. If you change employers as well, ensure the new employer applies the correct canton.

What is the difference between Quellensteuer and Verrechnungssteuer? Quellensteuer is withholding tax on employment income for foreign workers without permanent residence. Verrechnungssteuer is a 35% federal withholding tax on investment income (dividends, interest, lottery winnings) that applies to everyone. They are entirely separate taxes with different rules, rates, and reclaim mechanisms.

Related Taxolution.ch Guides

• Swiss Tax Deadlines 2026 — Filing dates, extension rules, and payment schedules
• Moving to Switzerland in 2026 — Tax registration, first-year considerations, and practical steps
• Swiss Marriage Penalty Explained — How joint vs. individual taxation affects your tax burden
• Quasi-Residency (90% Rule) — When cross-border workers can claim Swiss-resident tax treatment
• ANOBAG Guide — Ordinary assessment after withholding tax (NOV) explained
• Individual Taxation Referendum — What the March 2026 vote means for married couples

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This guide reflects the legal position as of February 2026. Sources include the Federal Act on Direct Federal Tax (DBG, SR 642.11), the Federal Tax Harmonization Act (StHG, SR 642.14), the Quellensteuerverordnung (QStV, SR 642.118.2), ESTV Kreisschreiben Nr. 45, the DTA amendments with France, Germany, and Italy, the Federal Act on the Taxation of Telework in International Relations, cantonal tariff publications, and Federal Supreme Court decisions cited by their BGer reference numbers.

Withholding tax rates are approximate and based on published 2025/2026 cantonal tariff tables. Always verify exact rates with your cantonal tax authority or employer.