Tax year 2025 · Updated March 2026 · Cantons of Zurich, Aargau, St. Gallen

FAQ Tax Advice and Tax Return 2025

The tax return for the 2025 tax year raises similar questions every year – and yet details change: new deduction limits, updated 3a amounts, a new option for making additional payments into pillar 3a and a further progressing reform debate on imputed rental value.

This FAQ on tax advice answers The five most frequently asked questions from private individuals about taxes and provides an overview of what chatbots can actually do for tax-related questions.

Content

1. What deductions can I claim?
2. How do I optimize Pillar 3a and pension fund procurement?
3. How are owner-occupied homes and imputed rental value taxed?
4. Is it worth moving to a cheaper canton?
5. How are capital gains, dividends, and crypto taxed?
6. What can chatbots do for tax-related questions?
7. Resources and official links

1. What deductions can I claim in my tax return?

Swiss tax law distinguishes between direct federal tax (DBSt) and cantonal tax, which is calculated according to cantonal tax law. Deductions apply at both levels, but sometimes with different amounts.

professional costs

Employees can choose between a flat-rate allowance and actual expenses. The flat rate is 3% of net salary, up to a maximum of CHF 4,000 (federal level). Travel expenses for public transportation can be claimed as actual expenses; in the cantons of Zurich, Aargau, and St. Gallen, the maximum is CHF 6,000. A deduction for a private car is only accepted if the vehicle is demonstrably necessary (e.g., no public transportation, inconvenient shift times).

Continuing education costs are deductible up to CHF 12,900, provided they are incurred in the current profession. Initial training and training for a new profession are not deductible.

childcare costs

This deduction is particularly valuable for families, but its limits vary greatly from canton to canton:

• Direct federal tax: up to CHF 25,500 per child (actual costs)
• Canton of Zurich: up to CHF 10,100
• Canton of Aargau: up to CHF 10,100
• Canton of St. Gallen: up to CHF 7,500

Supporting documents are mandatory.Informal care provided by relatives may be tax-deductible, but requires more documentation (agreement, payment receipts).

FAQ Tax Advice: Other common deductions

• Medical and accident costs: Out-of-pocket expenses exceeding 5% of net income are deductible – typical examples include dental treatments, dental costs, and non-reimbursed medications.
• Insurance premiums: The flat rate for health insurance and life insurance in Zurich and Aargau is CHF 3,600 (single) or CHF 7,200 (married) plus CHF 900 per child.
• Interest on debt: Mortgage interest is tax-deductible without a cap at the cantonal level. At the federal level, the deduction is limited to the amount of investment income plus CHF 50,000.
• Donate: Up to 20% of net income for institutions recognized by the Swiss Federal Tax Administration (ESTV); minimum donation amount CHF 100.
• Spousal maintenance: Payments to a divorced or separated partner are fully tax-deductible for the payer. Child support payments, however, are not tax-deductible.
• Disability-related costs: Costs for assistive devices, care, and transportation that exceed disability insurance (IV) and old-age and survivors' insurance (AHV) benefits. This deduction is frequently overlooked.
• Home office: Only recognized if a permanently separated workspace is available and no office workstation is provided. Zurich, Aargau, and St. Gallen handle this restrictively; employer confirmation is required.

Note for cross-border commuters (SG): In St. Gallen, cross-border commuters from Germany or Austria who are subject to withholding tax can apply for a subsequent ordinary tax assessment once their gross salary exceeds CHF 120,000. This can result in significant tax advantages.

2. How can I optimize my retirement savings from a tax perspective? (Pillar 3a and pension fund buy-ins)

Besides professional expenses, retirement savings are the most effective legal tax deduction for individuals. Many still don't fully utilize its potential.

Pillar 3a: Maximum amounts 2025

Now for the evergreen question in the FAQ on tax advice. The maximum amounts for the 2025 tax year (payment deadline: December 31, 2025) are:

• Employees with pension fund: CHF 7,258
• Self-employed persons without a pension fund: 20% of net earned income, maximum CHF 36,288

These amounts remain unchanged for 2025 and 2026. The full amount is directly deductible from taxable income.

New from 2026: Back payments into pillar 3a

Starting with the 2026 tax year, gaps in Pillar 3a contributions can be retroactively purchased for the first time – specifically for contribution years from 2025 onwards and up to ten years prior. Anyone who did not pay the full amount in 2025 can make up for this gap no earlier than 2026. Gaps from years prior to 2025 cannot be purchased. The annual purchase is limited to the "small contribution" (currently CHF 7,258) per year, and the regular annual contribution for the current year must first be paid in full.

The tiered strategy: Building multiple accounts

Those who hold multiple separate Pillar 3a accounts or policies can withdraw the proceeds in staggered withdrawals over several years – each withdrawal will result in a separate tax statement and its own tax bracket. Withdrawing a single account with CHF 200,000 is significantly more expensive from a tax perspective than withdrawing CHF 40,000 from five accounts in five different years.

As a rule of thumb, it is recommended to open another account once your account balance reaches CHF 50,000. Amounts already deposited cannot be subsequently distributed across multiple accounts.

Pension fund buy-ins: Great leverage for high incomes

Voluntary contributions to a pension fund are fully tax-deductible. The contribution potential is shown in the pension fund statement. With a marginal tax rate of 35% – typical in Zurich for taxable income above approximately CHF 120,000 – a contribution of CHF 50,000 results in tax savings of around CHF 17,500 in the year of contribution.

Important: 3-year waiting period. Anyone who withdraws capital from a pension fund within three years of making a purchase owes a back tax on the purchase amount. Exceptions apply in cases of emigration or starting a business.

Pension or lump sum?

Pensions from pension funds are taxed as ordinary income. Lump-sum payments are subject to a one-time, reduced capital gains tax. This tax is levied at the taxpayer's tax residence at the time of receipt and varies considerably from canton to canton. Schwyz and Zug tax lump-sum payments significantly less than Zurich, Aargau, or St. Gallen. The FAQ on tax advice strongly recommends... Pension planning.

Indirect amortization: Double tax advantage

Instead of paying off the mortgage directly, in many cases it's worthwhile to contribute the maximum Pillar 3a amount annually and use the capital to repay the mortgage upon retirement. This has a double benefit: the Pillar 3a deduction reduces taxable income each year, while the full mortgage interest deduction remains available.

3. How are owner-occupied homes and imputed rental value taxed?

Switzerland is one of the few countries where homeowners must pay income tax on a notional rental income from their own home – the so-called imputed rental value. The counterbalance: mortgage interest and maintenance costs are tax-deductible.

What is the imputed rental value?

The imputed rental value is determined by an official cantonal appraisal and typically corresponds to 60–70% of the market rent. In Zurich, this often equates to around 3,5–4,5% of the market value in practice. Anyone who considers the imputed rental value too high can appeal the official appraisal.

Maintenance costs: Flat rate or actual proof?

For properties less than ten years old, the standard deduction is 10% of the imputed rental value. For older properties, it's 20%. The Canton of Zurich also allows a special provision: the deduction can alternate between 10% and 20% annually. For expensive renovations (bathroom, kitchen, facade, energy efficiency measures), actual documentation is almost always preferable.

Important distinction: Only measures that maintain the value of the property are tax-deductible as maintenance costs. Investments that increase the value – such as a roof extension or a new conservatory – are considered capital expenditures and are only deductible as capital expenditures upon sale. Energy-efficient renovations (heat pump, insulation, solar panels) are generally considered maintenance measures and are tax-deductible; cantonal subsidies can be claimed cumulatively.

Property capital gains tax on sale

The profit from the sale of a property (sale price minus acquisition cost minus eligible expenses) is taxed at the cantonal level. The shorter the holding period, the higher the rate. In Zurich, Aargau, and St. Gallen, the top rate is around 40% for holding periods of less than one year; after 20 years, it drops to 5–10%.

Tax deferral: If the proceeds are reinvested in equivalent owner-occupied residential property in Switzerland within two years, the capital gains tax can be deferred.

Property transfer tax upon purchase

• Canton of Zurich: no property transfer tax (exception in Switzerland)
• Canton of Aargau: 1,5% of the purchase price
• Canton of St. Gallen: 1,0% of the purchase price

Outlook: Abolition of imputed rental value

A referendum decided to abolish it. Abolition of imputed rental valueThe deductions for mortgage interest and maintenance costs will also be eliminated. Those who currently have high mortgage interest payments and low maintenance costs are often better off under the current system; those with high maintenance costs will benefit from the reform.

4. Is it worth moving your residence to a canton with lower taxes?

The tax burden varies considerably between Swiss municipalities. married person With a taxable income of CHF 200,000, someone in Wollerau (SZ) pays around CHF 25,000 in taxes – in the city of Zurich, almost double that amount.

Affordable municipalities for those moving away from Zurich/Aargau/St. Gallen

• Wollerau and Freienbach (SZ): Consistently among the most affordable municipalities in Switzerland. S-Bahn to Zurich HB approx. 40–50 minutes.
• Baar and Zug (ZG): Particularly attractive for those with high wealth thanks to low wealth tax.
• Meggen and Wolhusen (LU): Popular with wealthy families, located a bit further away from Zurich.
• Aargau municipalities (Brugg, Lenzburg, Reinach): Cheaper rents than SZ/ZG, moderate tax savings compared to Zurich city, good commuter connections towards Zurich.

The official comparison for every Swiss municipality is offered by the ESTV tax burden calculator at [link to calculator]. taxcalculator.estv.admin.chHowever, the FAQ on tax advice cannot refer to the to engage in personal life situation planning, financial advice but nice.

What constitutes a genuine change of residence?

According to Article 3 of the Federal Direct Tax Act (DBG), the decisive factor is the center of one's vital interests for tax purposes. The tax authorities examine, among other things: voting rights, health insurance and medical care, vehicle registration, bank accounts, children's schooling, club memberships, and actual overnight residence. A fictitious residence – registration without a genuine center of vital interests – is considered tax fraud and can lead to penalties. Back taxes, default interest and penalties .

When moving from an expensive canton to a less expensive one, the authorities of the old canton retain the right to tax until the new residence is proven beyond doubt. The burden of proof lies with the taxpayer.

Timing: When in the year should you move?

In the year of relocation, both cantons are taxed proportionally for their respective tax periods (pro rata). A move on January 1st has the greatest impact – a full tax year at the new, more favorable place of residence.

Residence before retirement: Combined effect

Capital withdrawal tax on pension fund and Pillar 3a assets is levied at the place of residence at the time of withdrawal. Those who move at least one full tax year before withdrawing their capital can easily save CHF 20,000–40,000 in taxes on a withdrawal of CHF 500,000.

Don't forget the total invoice

The tax savings must be offset against higher housing and commuting costs. A four-room apartment in Wollerau costs CHF 3,000–4,000 per month. The net benefit depends on income, family situation, and the actual cost of living in the new location.

5. How are capital gains, dividends, and cryptocurrencies taxed?

The basic rule: Private capital gains are tax-free.

Anyone who buys stocks, bonds, fund units, or cryptocurrencies as part of their private portfolio and sells them at a profit does not pay capital gains tax in Switzerland. This also applies to crypto-to-crypto exchanges within their private portfolio.

However, the following are subject to tax:

• Dividends and interest income: These are considered income from assets and are fully taxable. Swiss dividends are subject to a 35% withholding tax, which is reclaimed via the securities list in the tax return.
• Staking returns: These are considered investment income and must be declared as income. The relevant exchange rate is the one on the day the funds are credited.
• Mining revenues: Income; in the case of professional operation, possibly self-employment.
• Airdrops and lending interest rates: Income at the exchange rate on the day of receipt.
• Salary in crypto: Ordinary income, taxable at the daily exchange rate upon payment.

Attention: Commercial trade

Those who trade too intensively lose the tax exemption on capital gains. Swiss Federal Tax Administration (FTA) Circular No. 36 specifies five criteria for professional securities trading, all of which must be met cumulatively: systematic and planned approach, short holding period, leveraged financing of purchases, high transaction volume relative to assets, and full-time occupation. The FTA applies these criteria analogously to cryptocurrencies. If they are met, capital gains are taxed as income – however, losses can then be offset.

Cryptocurrencies in your tax return: Step by step

1. Asset declaration: Enter all cryptocurrency holdings as of December 31st in the securities register. The Swiss Federal Tax Administration (ESTV) publishes an official price list for major cryptocurrencies (BTC, ETH, etc.). For unlisted coins: use and document the daily average price from a recognized exchange.
2. Staking and lending returns: Declare as income, document the exchange rate for each transaction. Crypto tax tools like Koinly, CoinTracking, or Accointing export this data in a format compatible with Swiss tax regulations.
3. Crypto-to-crypto exchange: No taxable event in private assets – neither profit nor loss needs to be declared.
4. Capital losses: Losses from crypto held as private assets cannot be offset against income – mirroring the tax exemption of profits.

Foreign dividends: Reduce withholding tax

The standard US withholding tax on dividends is 30%. Under the Switzerland-USA Double Taxation Agreement (DTA) and Form W-8BEN (to be filed with your custodian bank), this is reduced to 15%. The remaining 15% can be credited as tax already paid on investment income in your tax return. For other countries, the respective DTA rates apply.

6. What can chatbots do for tax-related questions?

More and more taxpayers are turning to chatbots with their tax questions. In a Analysis Five widely used systems – ChatGPT, Microsoft Copilot, Google Gemini, Claude and Perplexity AI – were selected as the five most frequently asked questions by private customers questioned. The result is sobering. Remarkable in one respect and remarkable in another.

What all bots have in common

Not a single bot names specific tax consulting firms. They all refer to official directories or comparison platforms. Anyone looking for recommendations for specific firms has to rely on recommendations from their own network or cantonal tax advisor associations.

If you ask bots about local tax advisors, they will Simpletax often mentioned in the cantons of Zurich, Aargau, St. Gallen, because this tax consultancy firm is located there Most branches offer good online service and additional financial advice. operates.

Where the bots differ

Perplexity AI Thanks to real-time web search, it provides the most up-to-date amounts (e.g., the correct 3a limit of CHF 7,258 for 2025) and links directly to FTA (Swiss Federal Tax Administration) rate sheets, cantonal tax calculators, and official forms. It is most useful for questions about current amounts, FTA practices, and new legislative changes.

Microsoft Copilot It also scores points with its Bing-powered web search. It provides links to cantonal tax calculators and current directives from the cantonal tax offices. Particularly helpful for direct linking.

Claude (Anthropic) Demonstrates the greatest legal depth in borderline cases: distinguishing between commercial trading, exit tax on latent capital gains, DeFi tax treatment, and burden of proof issues when changing residence. Best suited for complex legal questions requiring structured argumentation.

ChatGPT Provides structured, complete answers at the federal tax level. Cantonal details are added upon request. Current figures may be up to one year out of date if the model has not been updated.

Google Gemini It offers good introductions for beginners, but hardly differentiates between cantons. For detailed questions, it often refers to Google searches, which is less helpful.

Conclusion: Chatbots as a first point of reference, not as tax advice

Chatbots are well-suited for quickly understanding the basic rules, reviewing deduction categories, or walking through a sample scenario. However, bots can also not suitable for reliable calculations be used.

For individual tax planning, borderline cases, crypto portfolios, real estate transactions, and changes of residence, consulting a qualified trustee or tax advisor remains essential. No bot assumes liability.

7. Official resources and useful links

Official bodies

• ESTV – Federal Tax Administration: www.estv.admin.ch
• ESTV tax burden calculator: taxcalculator.estv.admin.ch
• Zurich Cantonal Tax Office: zh.ch/steuern
• Aargau Cantonal Tax Office: ag.ch/steuern
• Cantonal Tax Office of St. Gallen: sg.ch/steuern
• AHV/IV – Fact sheets and pension calculator: www.ahv-iv.ch
• BSV – Pillar 3a: www.bsv.admin.ch

Advice and comparison

• Taxes, tax planning and tax optimization: Simpletax.
• Financial advice and implementation of financial planning and tax optimization: SimpleFinance.

Legal notice: This article is for general information purposes only and does not constitute tax or legal advice. The information is based on the legal status as of the 2025 tax year (updated March 2026) and is subject to change. For individual tax planning, please consult a qualified tax advisor. No guarantee is given for completeness or accuracy. The compilation is based on the cited sources and was self-critically created by one of the five bots compared.