Last updated: February 2026
Taxes are one of the biggest sources of stress for freelancers in Switzerland — and for good reason. Unlike employees, who have taxes handled through their employer, freelancers are responsible for everything themselves: calculating their income, making advance payments, filing returns, and paying social security contributions out of their own pocket.
The Swiss tax system is also uniquely complex because it operates on three levels: federal, cantonal, and municipal. That means where you live can affect your tax bill as much as how much you earn.
This guide breaks down exactly how taxes work for freelancers in Switzerland in 2026 — what you owe, when you owe it, and how to keep more of what you earn.
How the Swiss Tax System Works for Freelancers
As a sole proprietor (Einzelunternehmen), your freelance income is treated as personal income. There’s no separate business tax — your profits flow directly onto your personal tax return. You’re taxed on your net income: total revenue minus allowable business expenses.
Your tax bill is the sum of three separate taxes, each calculated independently:
Federal Income Tax (Direkte Bundessteuer)
This is set by the federal government and applies equally across Switzerland. Federal income tax uses a progressive scale, with the maximum rate capped at 11.5%. For most freelancers earning between CHF 50,000 and CHF 150,000, the effective federal rate falls somewhere between 1% and 6%.
Cantonal Income Tax (Kantonssteuer)
Each of Switzerland’s 26 cantons sets its own tax rates and scales. This is typically the largest portion of your tax bill. Cantonal tax rates vary dramatically — from low-tax cantons like Zug and Schwyz to high-tax cantons like Geneva and Bern.
Municipal Income Tax (Gemeindesteuer)
Your municipality (Gemeinde) adds a surcharge on top of the cantonal tax, usually expressed as a percentage of the cantonal amount. Cities generally have higher municipal multipliers than rural areas.
Location Matters — A Lot!
A freelancer earning CHF 100,000 in Zug might pay a combined income tax rate of around 15–18%. The same freelancer in Geneva could face 30–35%. Before choosing where to base your business, it’s worth comparing cantonal tax rates using the official calculator on the Federal Tax Administration (ESTV) website.
Social Security Contributions (AHV/IV/EO)
On top of income tax, every self-employed person in Switzerland must pay social security contributions. These fund old-age pensions (AHV), disability insurance (IV), and income compensation during military service or maternity leave (EO).
This is one of the biggest differences between being employed and freelancing. Employees split AHV/IV/EO contributions 50/50 with their employer (5.3% each, totalling 10.6%). As a freelancer, you pay the full amount yourself.
2025/2026 Contribution Rates for the Self-Employed
Annual Net Income
AHV/IV/EO Rate
Annual Contribution
Below CHF 60,500
Degressive (reduced) scale
Less than CHF 6,050
CHF 60,500 and above
10.0% (maximum rate)
e.g. CHF 10,000 on CHF 100,000 income
CHF 150,000
10.0%
CHF 15,000
The degressive scale is a sliding rate that applies to lower incomes. If you earn CHF 30,000, for example, your rate might be around 5.4% rather than the full 10%. This is designed to ease the burden on freelancers who are just starting out.
Your compensation office (Ausgleichskasse) will send you provisional contribution invoices during the year based on your estimated income. Once your final tax assessment comes through, they’ll reconcile the difference — you’ll either receive a refund or an additional bill.
Don’t Underestimate Social Security
Many first-time freelancers are caught off guard by AHV/IV/EO. On CHF 100,000 of income, you’ll owe around CHF 10,000 in social security alone — before any income tax. Factor this into your pricing from day one.
VAT (MWST): When You Need to Register
Value Added Tax (called MWST in German, TVA in French) is a separate obligation that kicks in once your annual turnover exceeds CHF 100,000.
Below CHF 100,000 Turnover
You’re exempt from VAT. You don’t charge VAT on your invoices and don’t file VAT returns. However, you also can’t reclaim VAT on your own business purchases.
Above CHF 100,000 Turnover
You must register with the Federal Tax Administration (ESTV) and begin charging VAT on your invoices. You’ll then file quarterly VAT returns and remit the collected VAT, minus any input VAT you’ve paid on business expenses.
Current Swiss VAT Rates (2026)
Rate
Percentage
Applies To
Standard rate
8.1%
Most goods and services
Reduced rate
2.6%
Food, books, newspapers, medicine
Special rate
3.8%
Hotel accommodation (including breakfast)
You can also register for VAT voluntarily below the CHF 100,000 threshold. This can be useful if most of your clients are businesses (they can reclaim the VAT anyway), and it allows you to reclaim VAT on your own expenses like equipment, software, and coworking memberships.
New in 2026: Retroactive Pillar 3a Contributions
Starting in 2026, you can retroactively contribute to Pillar 3a for missed years going back to 2025. If you didn’t max out your 3a contribution in 2025, you can now catch up — and deduct the full amount from your taxable income. This is a significant new tax optimization opportunity for freelancers.
Tax Deductions Every Swiss Freelancer Should Know
Deductions are your most powerful tool for reducing your tax bill. As a self-employed person, you can deduct all business-related expenses from your gross income before tax is calculated. The key rule: the expense must be directly related to generating your freelance income.
Common Deductible Business Expenses
Office and workspace: Rent for a dedicated office or coworking space. If you work from home, you can deduct a proportional share of your rent based on the space used for work.
Equipment and tools: Computers, monitors, software subscriptions, phones, cameras — anything essential to your work.
Professional development: Courses, conferences, books, and training related to your profession (deductible up to CHF 13,000 for 2025/2026).
Travel and transport: Business travel costs, including public transport tickets. For a personal vehicle used for work, you can deduct approximately CHF 0.70 per kilometer.
Insurance premiums: Professional liability insurance, legal protection insurance, and other business-related policies.
Marketing and communications: Website hosting, domain names, advertising, business cards, and phone/internet costs used for work.
Professional services: Accountant or fiduciary fees, legal advice, and other consulting costs.
Social security contributions: Your AHV/IV/EO payments are fully deductible from taxable income.
Pension Deductions (Pillar 3a)
One of the most effective ways to reduce your tax bill is contributing to a Pillar 3a retirement account. As a self-employed person without a Pillar 2 (BVG) pension, you can contribute up to 20% of your net earned income, capped at CHF 36,288 for 2025/2026. The entire amount is deductible from your taxable income.
For a freelancer earning CHF 120,000 who contributes CHF 30,000 to Pillar 3a, the taxable income drops to CHF 90,000 — potentially saving CHF 8,000–10,000 in taxes depending on the canton.
If you do have a Pillar 2 pension (through voluntary enrollment or a previous employer), the maximum Pillar 3a deduction is CHF 7,258 for 2025/2026.
How and When to File Your Tax Return
The Tax Year
Switzerland’s tax year runs from January 1 to December 31. You file a return for each calendar year.
Filing Deadline
The standard deadline is March 31 of the following year (so March 31, 2027, for the 2026 tax year). However, most cantons grant extensions — often to September or even November — upon a simple online request. Check your canton’s specific rules.
What You’ll Need
As a sole proprietor, you’ll file a personal tax return that includes a section for self-employment income. You’ll need to provide:
A summary of your gross income (total invoiced revenue)
A detailed list of business expenses with supporting receipts
Your balance sheet and profit & loss statement (if your turnover exceeds CHF 500,000, full double-entry bookkeeping is required; below that, simplified records are acceptable)
Social security contribution statements from your compensation office
Pillar 3a contribution receipts
Bank statements
Advance Tax Payments
During the tax year, your canton will send you provisional tax invoices (Ratenrechnungen) — typically three installments based on the previous year’s assessment. These are due around May, August, and November. After your final assessment is processed (often 1–2 years later), you’ll receive a final settlement for any difference.
If your income increases significantly compared to the previous year, consider voluntarily increasing your advance payments to avoid a large catch-up bill — and to avoid late payment interest (currently 4.5% for federal taxes).
Bookkeeping Requirements
Annual Turnover
Bookkeeping Requirement
Below CHF 500,000
Simplified records: income, expenses, and assets (cash-based accounting is acceptable)
CHF 500,000 and above
Full double-entry bookkeeping with balance sheet and profit & loss statement
CHF 100,000+ (or voluntary)
Commercial Register entry required; brings additional obligations
Regardless of your turnover, you must retain all business records — invoices (sent and received), receipts, bank statements, contracts — for 10 years. The records must be accessible, legible, and tamper-proof.
In practice, this means you need a system. Whether that’s a folder of PDFs on your computer, a spreadsheet, or invoicing software, the important thing is that everything is organized and complete when your tax return is due — or if you’re ever audited.
6 Tax Mistakes Swiss Freelancers Make
Not setting money aside for taxes
our income arrives gross — no tax has been withheld. A good rule of thumb is to set aside 25–35% of every payment you receive for taxes and social security. Transfer it to a separate savings account the day it arrives.
Missing deductions
Every legitimate business expense reduces your tax bill. Keep receipts for everything: software, equipment, travel, meals with clients, professional development. The effort pays off directly.
Ignoring Pillar 3a
If you’re not contributing to Pillar 3a, you’re leaving the biggest single tax deduction on the table. A freelancer without a Pillar 2 can deduct up to CHF 36,288 per year.
Underestimating AHV contributions
At 10% of net income, AHV/IV/EO is a major expense. Budget for it from the start, and don’t be surprised when the final assessment bill arrives.
Sloppy record-keeping
Missing receipts mean missed deductions. If you can’t prove an expense, you can’t deduct it. Photograph receipts immediately and store them digitally.
Filing late without an extension
Late filing can result in penalties and estimated assessments that may not be in your favor. Request an extension early if you need one — it’s usually free and takes minutes.
How to Stay on Top of It All
The single best thing you can do for your tax situation as a freelancer is to keep your finances organized throughout the year — not just in March. That means tracking every invoice, logging every expense, and always knowing roughly where your income stands relative to key thresholds (CHF 100,000 for VAT, CHF 60,500 for the full AHV rate).
This is exactly what Fakturio is built for. By keeping your invoices, time tracking, and expenses in one place, you always have a clear picture of your gross income, your net earnings, and an estimate of what you’ll owe in taxes — broken down by federal, cantonal, and municipal levels based on where you live.
Track your income in real time as invoices are issued
Log expenses instantly by photographing receipts
See your estimated tax liability updated throughout the year
Export everything you need for your tax return in one click
No more surprises in March. No more shoeboxes of receipts. Just a clear, ongoing picture of your financial position.
