Global Daily Tax News, Switzerland Announces 2026 Personal Tax Thresholds, Deductions, (Sep 12, 2025)

Switzerland's Finance Ministry has announced adjustments to personal income tax thresholds and deductions to bring them into line with inflation.

The changes will affect tax returns submitted in 2027 for the 2026 tax year.

Inflation has been low, at just 0.1 percent. As such, many deductions remain unchanged, including the deductions provided for in the Business Expenses Ordinance.

The exemption threshold for salary paid to firefighters will be raised to CHF5,400, up from CHF5,300, and the exemption for participating in large-scale gambling and online casino games will increase to CHF1,071,000, compared with CHF1,070,400 currently.

The deduction for use of a private vehicle for commuting to work, set annually by Touring Club Switzerland (TCS), will be raised to CHF0.75 per kilometer, from the first kilometer, up from CHF0.70.

The Finance Ministry has also announced a cut to the interest rate on late payments of tax, from 4.5 percent to 4 percent, from January 1, 2026. No interest will be paid on advance payments of tax (compared to 0.75 percent in 2025).

The interest rates relate to VAT, direct federal tax, withholding tax, tobacco tax, beer tax, motor vehicle tax, mineral oil tax, distilled beverage tax, customs duties, stamp duties, service-related heavy goods vehicle traffic levy, CO2 tax, incentive tax on volatile organic compounds, Pillar Two minimum taxes, and penalties imposed under carbon tax legislation.