Taxes in Zurich: What Expats Need to Know

Zurich’s rates are moderate by international standards, and most expats pay less tax than they expect.

This guide covers the basics of federal, cantonal and communal taxes, plus what expats should know about deductions and allowances.

Tax Structure in Zurich

Taxes are divided into three levels: federal, cantonal, and communal. Each municipality sets its own rate.

SwissNest tip: Living just outside the city can reduce your tax bill. We help families compare housing and tax rates across Zurich’s municipalities.

Tax Rates and Income Levels

• Average earners: around 20–25%

• Married couples and families: often lower due to deductions

• High incomes: up to 30%

SwissNest tip: Zurich may seem expensive, but net income after taxes often compares favorably to London or Paris.

Withholding Tax (Quellensteuer)

Many expats have taxes deducted automatically from their salary. This continues until they receive a C permit or earn above a certain threshold.

SwissNest tip: Double-check your tax rate category, especially if your family situation changes. We connect clients with English-speaking tax advisors to review it.

Common Deductions

• Commuting and further education costs

• Pension contributions (Pillar 3a)

• Health insurance premiums

• Childcare expenses

• Donation

SwissNest tip: Keep all receipts. Even small deductions can add up. We show newcomers how to prepare for their first Swiss tax return.

Final Thoughts

Taxes in Zurich are fair, predictable and easy to manage once you know the system. The key is to plan ahead and understand your deductions.

SwissNest helps expats choose the right area, set up professional tax support and ensure full compliance from day one.