What is the 2026 New Cross-Border Worker Agreement?

The new Italy-Switzerland tax agreement (in force since 2024 and fully applied in 2026) separates 'old' and 'new' cross-border workers. New cross-border workers (hired from 17/07/2023) who live within 20 km of the border pay 80% withholding tax in Switzerland and declare the income in Italy with a €10,000 exemption and tax credit. Beyond 20 km, Swiss withholding rises to 100%.

When are you considered a 'new cross-border worker'?

You are a new cross-border worker if your Swiss employment contract was signed on or after 17 July 2023. Those hired before that date remain 'old cross-border workers' until 31 December 2033 (transitional period), with taxation only in Switzerland at 100% and remittance of part of the tax to Italian border municipalities.

How is the withholding tax calculated in Ticino in 2026?

The Ticino withholding tax is applied by the employer using the cantonal schedule: A (single, no children), B (married, single-earner), C (married, dual-earner) and H (single-parent family). The rate depends on monthly gross income and ranges from about 2% (CHF 3,000/month) to 16% (above CHF 15,000/month). Each dependent child reduces the rate by about one percentage point.

What changes if I live beyond 20 km from the Swiss border?

New cross-border workers who live beyond 20 km from the Swiss border lose cross-border tax status under the New Agreement: they pay 100% withholding tax in Switzerland (like residents without remittance) and declare the income in Italy with a full tax credit to avoid double taxation. The €10,000 exemption does not apply in this case.

Are AVS and LPP contributions deductible in Italy?

Yes. Mandatory Swiss social security contributions AVS/AI/IPG (5.3%) and LPP (2nd pillar) withheld in Switzerland are deductible from the IRPEF taxable income of new cross-border workers when they file their Italian tax return, effectively lowering the Italian taxable base. Keep the annual Swiss salary certificate (Lohnausweis) for your accountant.

Can I use the simulator even with a B permit?

Yes. The payslip simulator computes social deductions (AVS, AD, AINF, IJM, LPP) and Ticino withholding tax: these are the same items on the payslip of a B-permit resident working in Ticino. However, with a B permit the special cross-border tax regime (Italian tax credit) does not apply: the CHF net is your actual net. For a G vs B tax comparison, use the dedicated comparator.

Is the withholding tax final or can I recover part of it via the TDR?

The Ticino withholding tax can be adjusted via the TDR (Tariffa Doganale Ridotta) by 31 March of the following year. Allowed deductions include commuting expenses (max CHF 3,200), meals outside home, 3rd pillar contributions (max CHF 7,258 in 2026), medical expenses and alimony. The refund is credited directly to your bank account.

Does the simulator include the 13th month and family allowances?

The annual gross salary entered already includes the 13th month (divided by 13 to get the monthly gross). Cantonal family allowances (approximately CHF 200-300 per month per child in Ticino) are not included in the simulation because they are not subject to social deductions and withholding tax: add them to the net computed.

Estimate Payslip (cross-border guide)

Estimate Payslip — free tools and expert guides for cross-border workers (frontalieri) between Switzerland and Italy. Compare salaries, tax, LAMal health insurance, pensions, and cost of living in Ticino. Updated 2026.

Last updated: May 2026

By Frontaliere Ticino Editorial Team · Cross-border tax & pension specialists

The payslip simulator reconstructs your net salary step by step starting from the gross annual amount in Swiss francs: AVS/AI/IPG (5.3%), unemployment insurance (1.1%), non-occupational accident insurance, and daily sickness benefits are deducted before calculating the withholding tax.

Withholding tax is computed using the Canton Ticino A/B/C/H tax tables, updated for 2026, accounting for marital status, number of children, and religious affiliation. The result is then converted to euros at the selected exchange rate to show real purchasing power in Italy.

After the simulation you can compare the net result against actual cross-border living costs: transport, LAMal health insurance, lunches, parking, and car insurance with Swiss plates — giving you a realistic estimate of monthly savings.

A Swiss payslip (Lohnabrechnung) typically lists several deductions that Italian workers may find unfamiliar: AVS/AI/APG at 5.3% covers old-age, disability, and maternity insurance; AC at 1.1% is unemployment insurance; NBU covers non-occupational accident insurance; KTG provides daily sickness benefits; and LPP is the mandatory occupational pension contribution that varies by age bracket (7% at age 25–34 rising to 18% at age 55–64).

Understanding the difference between gross and net salary in Switzerland versus Italy is crucial for accurate financial planning. In Switzerland, social deductions total roughly 12–16% of gross pay depending on age, while in Italy INPS contributions reach 9.19% for employees plus higher IRPEF rates. The Swiss system front-loads pension savings via mandatory LPP, meaning a lower net salary actually builds more retirement capital than an equivalent Italian role — a factor often overlooked during salary negotiations.

This page is part of Frontaliere Ticino, the reference platform for cross-border workers between Switzerland (Canton Ticino) and Italy. Find practical tools, updated data, and verified information.

Content is designed to help cross-border workers make informed decisions about taxation, pensions, transportation, cost of living, and administrative procedures.

Frequently asked questions

What is the 2026 New Cross-Border Worker Agreement?: The new Italy-Switzerland tax agreement (in force since 2024 and fully applied in 2026) separates 'old' and 'new' cross-border workers. New cross-border workers (hired from 17/07/2023) who live within 20 km of the border pay 80% withholding tax in Switzerland and declare the income in Italy with a €10,000 exemption and tax credit. Beyond 20 km, Swiss withholding rises to 100%.
When are you considered a 'new cross-border worker'?: You are a new cross-border worker if your Swiss employment contract was signed on or after 17 July 2023. Those hired before that date remain 'old cross-border workers' until 31 December 2033 (transitional period), with taxation only in Switzerland at 100% and remittance of part of the tax to Italian border municipalities.
How is the withholding tax calculated in Ticino in 2026?: The Ticino withholding tax is applied by the employer using the cantonal schedule: A (single, no children), B (married, single-earner), C (married, dual-earner) and H (single-parent family). The rate depends on monthly gross income and ranges from about 2% (CHF 3,000/month) to 16% (above CHF 15,000/month). Each dependent child reduces the rate by about one percentage point.
What changes if I live beyond 20 km from the Swiss border?: New cross-border workers who live beyond 20 km from the Swiss border lose cross-border tax status under the New Agreement: they pay 100% withholding tax in Switzerland (like residents without remittance) and declare the income in Italy with a full tax credit to avoid double taxation. The €10,000 exemption does not apply in this case.
Are AVS and LPP contributions deductible in Italy?: Yes. Mandatory Swiss social security contributions AVS/AI/IPG (5.3%) and LPP (2nd pillar) withheld in Switzerland are deductible from the IRPEF taxable income of new cross-border workers when they file their Italian tax return, effectively lowering the Italian taxable base. Keep the annual Swiss salary certificate (Lohnausweis) for your accountant.