In order to reduce the tax burden, the Swiss tax system provides for various deductions. One of these deductions concerns insurance premiums. In this blog post, we will take a closer look at the deduction of insurance premiums.
Which insurance policies are deductible?
Premiums for the following insurance policies are generally tax deductible:
- Health insurance
- Life insurance
- Voluntary accident insurance
- Non-company accident insurance
What is the deductible amount?
The maximum amount that can be deducted from taxes is the actual b The maximum amount that can be deducted from taxes is the insurance premium actually paid. At the federal level, the maximum deductible amount is set at CHF 1,700 and at CHF 3,500 for married couples. If no contributions are made by the taxpayer or their employer to the occupational pension plan or Pillar 3, the deduction is increased by 50%. On a cantonal level, the maximum amount varies between cantons. In the canton of Zurich, for example, a maximum deduction of CHF 2,600 is allowed, and for married couples CHF 5,200.
For each child or person requiring support, an additional CHF700 can be deducted at the federal tax level. This additional deduction also varies from canton to canton. In the canton of Zurich, the deduction amounts to a maximum of CHF1,300.
Premium reduction
Persons living in economically modest circumstances receive a premium reduction for compulsory health insurance from the cantons. The premium reduction is intended to reduce the financial burden. As a part of the health insurance premiums is not paid by the taxpayer, this amount cannot be deducted from the taxes.
Proof and documentation
In order for the tax authorities to allow the deduction of insurance premiums, it is important that the relevant proof and documents are submitted with the tax return. In principle, health insurance companies compile a statement of premiums paid, which can be enclosed with the taxes.
