Tax Rates 2025: What Has Changed
A comprehensive overview of all tax-relevant changes for 2025 and their impact on your net salary in Switzerland.
Published on 26 June 2025
Overview of the 2025 Changes
The 2025 tax year brings a number of changes for Swiss employees in social insurance contributions, occupational pensions and cantonal tax rates. While the direct federal tax remains unchanged, several cantons have adjusted their tax schedules, and AHV/IV contributions as well as BVG parameters have been updated. This article explains all relevant changes and what they mean for your net pay.
The Swiss tax system is famously complex, as taxes are levied at three levels: federal, cantonal and municipal. In addition, social insurance contributions (AHV/IV/EO/ALV) are deducted directly from gross salary. Any change at one of these levels has an immediate impact on net income.
AHV/IV/EO Contributions
First-pillar contribution rates remain stable for 2025. The AHV contribution rate continues at 8.7 per cent of gross salary (4.35 per cent each for employer and employee). The IV contribution is 1.4 per cent (0.7 per cent each) and the EO contribution is 0.5 per cent (0.25 per cent each). In total, employees pay 5.3 per cent of their gross salary in AHV/IV/EO contributions.
The maximum AHV retirement pension has been increased to CHF 2 450 per month for 2025, reflecting general wage and price developments. Minimum contributions for self-employed individuals and non-employed persons have also been adjusted.
Unemployment Insurance (ALV)
The ALV contribution rate remains at 2.2 per cent of insured earnings up to the maximum amount of CHF 148 200 per year (1.1 per cent each for employer and employee). No additional ALV contribution is due on income exceeding CHF 148 200. The solidarity contribution of 1.0 per cent on income above CHF 148 200 was abolished at the end of 2023 and no longer applies in 2025.
For an employee with an annual salary of CHF 100 000, the ALV deduction amounts to CHF 1 100 per year, or approximately CHF 92 per month. For a salary of CHF 150 000, the ALV deduction is calculated on the capped amount of CHF 148 200, resulting in CHF 1 630 per year.
BVG Changes (Second Pillar)
The occupational pension (BVG) thresholds have been adjusted for 2025. The coordination deduction is CHF 25 725, the entry threshold is CHF 22 050, and the maximum insured salary is CHF 88 200. The coordination deduction determines which portion of salary is relevant for BVG contributions.
BVG contribution rates depend on age: 7 per cent for employees aged 25 to 34, 10 per cent from 35 to 44, 15 per cent from 45 to 54, and 18 per cent from 55 to 65. These rates apply to the statutory minimum contributions. Many employers offer supra-mandatory pension benefits with higher contribution rates.
Direct Federal Tax
The direct federal tax for individuals remains unchanged for 2025. The rates are progressive, ranging from 0.77 per cent for taxable income above CHF 17 800 to 11.5 per cent for income exceeding CHF 755 200. Allowances and deductions have been marginally adjusted for inflation. The child deduction remains at CHF 6 600 per child, and the insurance deduction is CHF 1 800 for single individuals and CHF 3 600 for married couples.
Cantonal Tax Changes
Several cantons have adjusted their tax schedules for 2025. The canton of Zurich has slightly reduced its tax multiplier, resulting in a modest relief. The canton of Bern has adjusted its wealth tax. The canton of Vaud has made changes to professional expense deductions. The exact impact depends on the canton and municipality of residence.
In the intercantonal comparison, Zug remains the most tax-favourable canton for individuals, followed by Schwyz, Nidwalden and Appenzell Innerrhoden. The highest taxes are paid by employees in the cantons of Geneva, Vaud and Bern. Use our cantonal comparison to see the differences for your income level.
Pillar 3a: Maximum Amount 2025
The maximum deductible contribution to pillar 3a is CHF 7 258 for employees with a pension fund and CHF 36 288 for self-employed individuals without a pension fund. These amounts have increased slightly for 2025. Pillar 3a contributions can be fully deducted from taxable income, making them one of the most effective means of tax optimisation.
Impact on Net Salary
The overall changes for 2025 are modest for most employees. An employee with an annual salary of CHF 80 000 can expect a change of less than CHF 200 per year, depending on the canton of residence. The greatest impact comes from cantonal tax adjustments, which may be positive or negative depending on the canton.
Use our gross-to-net calculator to calculate your personal net salary for 2026. The calculator takes into account all current deductions and tax rates for your canton and municipality.