Freibetrag (Exemption)

Freibetrag (tax exemption or allowance) refers to various deductions and allowances that reduce taxable income in Switzerland. These include personal allowances, dependent deductions, social security contributions, professional expenses, and insurance premiums. Both federal and cantonal tax systems provide Freibeträge, though amounts vary significantly by canton.

For 2026, common Freibeträge include: personal allowance (varies by canton, typically CHF 15,000-20,000), married couple allowance (CHF 30,000-40,000), child allowances (CHF 6,000-10,000 per child), and deductions for Pillar 2/3a contributions, health insurance premiums, childcare costs, and professional expenses. These exemptions directly reduce taxable income before tax rates are applied, providing significant savings.

Real-World Example If Thomas earns CHF 100,000 in Zurich with a wife and two children, he claims: personal allowance (CHF 17,000), married allowance (CHF 13,000), two child allowances (CHF 18,000), Pillar 3a contribution (CHF 7,258), and health insurance (CHF 8,000). Total Freibeträge: CHF 63,258. His taxable income reduces from CHF 100,000 to CHF 36,742, saving approximately CHF 15,000-18,000 in taxes.