Tax at source in Switzerland: how it works for foreign residents

How the rate is determined

Each canton publishes annual tariff tables that specify the tax at source rate for a given monthly gross salary, civil status, and number of dependant children. The rate is a flat percentage applied to gross salary, not a marginal rate, and is designed to approximate what an ordinary taxpayer at that income level would owe. The rates are grouped into tariff codes: tariff A (single, no children), tariff B (single income married couple), tariff C (dual income married couple), tariff H (single parent with children), and several others.

Your employer is responsible for applying the correct code and rate. When your situation changes (marriage, birth of a child, spouse takes up employment), you must notify your employer's payroll department to update your code, underpayments or overpayments from an incorrect code are your responsibility to correct. If you discover your employer has applied the wrong tariff code, request a correction and a retroactive adjustment, this is common and the process is straightforward.

The CHF 120,000 threshold

Once your gross annual income (including the 13th month, bonuses, and all taxable benefits) exceeds CHF 120,000, you automatically exit the tax at source regime and enter ordinary taxation, regardless of your permit type. From January of the following year, you will receive an ordinary tax return to complete. This means: no more monthly deductions from salary, but a larger annual tax bill due after filing. Many professionals crossing this threshold are surprised by the change, budget for the lump-sum tax payment in the first ordinary assessment year.

When to request an ordinary assessment

Even if your income stays below CHF 120,000 and you remain in the at-source regime, you can voluntarily request an ordinary assessment (taxation ordinaire ultérieure) to claim deductions that the standard rate does not account for. This is beneficial if you have: Pillar 3a contributions (up to CHF 7,258 deductible); significant professional expenses above the standard flat-rate deduction; mortgage interest payments; LPP buy-in contributions; childcare costs; or charitable donations.

The deadline is typically 31 March of the year following the tax year. The request is irrevocable, if you request it, you will be assessed under ordinary taxation for that year even if the result is less favourable than the at-source rate would have been. Before requesting, calculate whether your actual deductions exceed the standard allowances built into the at-source rate. In practice, a full Pillar 3a contribution plus modest professional expenses almost always tips the balance in favour of requesting the assessment.

Changing jobs or cantons mid-year

If you change canton mid-year, the tax at source rate changes from the month following your move. Your new employer applies the rate of your new canton of residence. The two partial-year assessments are typically handled by the respective cantonal tax authorities at year-end. If you change employer within the same canton, your new employer simply picks up where the previous one left off with the same tariff code.

Context on the Swiss salary landscape helps frame any single-role benchmark. Our gross-to-net salary guide details the full deduction structure (AVS, LPP, Quellensteuer) canton by canton. The salary negotiation guide sets out which arguments move Swiss hiring managers and which ones back-fire. The Zurich salary guide and the Geneva salary guide provide cross-sector comparisons for Switzerland's two main labour markets. For understanding your net take-home before accepting an offer, the brutto-netto calculation guide explains all eight standard deductions. Our work permit guide covers the B, C, G and L permit conditions that determine whether an offer is accessible.

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Frequently asked questions

My employer deducted too much tax at source, how do I get a refund?

Request an ordinary assessment (taxation ordinaire ultérieure) by 31 March of the following year. Alternatively, if the error is a simple tariff code mistake, ask your employer to correct it retroactively, they can adjust payroll for the current year. For prior years, the ordinary assessment is the only route to a refund.

Does tax at source cover all my Swiss tax obligations?

For income below CHF 120,000 without additional deductions to claim: yes. Tax at source is designed as a final settlement, you owe nothing further and file no return. However, wealth tax (impôt sur la fortune) on assets above cantonal thresholds is a separate obligation not covered by the at-source regime. If you have significant investment portfolios, foreign bank accounts, or real estate, check whether a supplementary return is required in your canton.

My spouse works in another canton, how is tax at source applied?

For dual-income married couples, both spouses are taxed at source independently under tariff C (dual income married). Each employer deducts based on the canton of residence and respective salary. The combined household income is used to determine the applicable tariff rate in some cantons. If the combined income approaches CHF 120,000, monitor this carefully, crossing the threshold makes both spouses subject to ordinary taxation even if individual salaries are below the limit in some cantons.

How long does it typically take to find a job in Switzerland as a foreign professional?

The average job search duration for foreign professionals in Switzerland ranges from 3 to 6 months for roles in high-demand sectors (IT, pharma) and 6 to 12 months for competitive sectors (finance, administration). Work permit processing (B permit for non-EU candidates) adds 4 to 8 weeks to the practical start date. Candidates with Swiss employment history or who are already in Switzerland on a valid permit move significantly faster. Our work permit guide covers the B, C, G permit processes and timeline.

What benefits beyond base salary do Swiss employers typically offer?

Standard Swiss benefits packages include: mandatory occupational pension (BVG/LPP, funded 50-50 by employer and employee), non-work accident insurance (NBUV, employer-funded), family allowances (Familienzulagen, cantonal minimum CHF 200-300/child/month), and paid vacation (minimum 20 days/year by law, typically 25 days in professional roles). Additional benefits in professional roles often include: supplementary pension top-up, car allowance or Mobility subscription, business travel insurance, meal allowances, and fitness subsidies. Our compensation structures guide covers the full package landscape.