Deductible insurance premiums

To reduce the tax burden, the Swiss tax system provides various deduction options. One of these deductions pertains to insurance premiums. In this blog post, we will take a closer look at the deduction of insurance premiums.

Which insurances are tax-deductible?

Premiums for the following insurances are generally deductible from taxes:

-      Health insurance

-      Life insurances

-      Voluntary accident insurances

-      Non-work-related accident insurance

What is the deductible amount?

From taxes, a maximum of the actual paid insurance premium can be deducted. At the federal level, the maximum deductible amount is set at CHF 1,700 and for married couples at CHF 3,500. If no contributions to occupational pension schemes or Pillar 3 are made by the taxpayers or their employer, the deduction increases by 50%. At the cantonal level, the maximum amount varies between cantons. For example, in the canton of Zurich, a deduction of a maximum of CHF 2,600 and CHF 5,200 for married couples is permitted.

For each child or dependent person, an additional CHF 700 can be deducted at the federal tax level. This additional deduction also varies from canton to canton. In the canton of Zurich, the maximum deduction is CHF 1,300. 

Premium reduction

Persons living in modest economic conditions receive a premium reduction for the mandatory health insurance from the cantons. The premium reductions aim to reduce financial burdens. Since a portion of the health insurance premiums is not borne by the taxpayer themselves, this amount cannot be deducted from taxes.

Proof and documentation

For tax authorities to allow the deduction of insurance premiums, it is important that the relevant proofs and documents are submitted with the tax return. Generally, health insurance companies provide a statement of the paid premiums, which can be included with the tax documents.