Who among the frontier workers is exempt from the tax at source?

There is no real exemption, but a deductible. Old frontiersmen (already such before 17 July 2023) benefit from €7,500 of income not subject to withholding tax until 2033, while new frontiermen have €10,000. In addition to the deductible, Swiss withholding tax (AVS/AI/IPG 5.3%, AD/AC 1.1%, etc.) applies normally. Italy then recognized a tax credit in 730 to avoid double taxation.

How do I recover the source tax paid in Switzerland?

Using the Italian form 730, filling in the CE (Income from foreign sources) table with the Swiss gross income and the amount of the withholding tax actually paid. The Revenue Agency compares the Swiss withholding tax with the personal income tax due (23–43% in stages) and grants credit for the lower amount. If the withholding tax is higher, you receive a refund; if lower, you pay the difference.

What source tax rates apply in 2024-2025?

The current rates are: AVS/AI/IPG 5.3% (employee contribution), AD/AC 1.1% up to CHF 148'200, LAINF 0.7-1.5% (by sector), LPP 7–18% by age group (from 25 years). These federal and cantonal rates apply on the paycheck. Check with the Swiss employer the total withheld, as Ticino cantonal rates may vary.

When do I have to file the 730 declaration as a border worker?

By 30 April of the year following the income period. For example, 2025 income must be declared by April 30, 2026. Use the Swiss salary certificate (Jahreslohnausweis) as supporting documentation. Keep the documents for at least five years in case of control.

What is the difference between Swiss withholding tax and Italian personal income tax?

Swiss withholding tax is paid ONLY to Switzerland and is an aggregate of social security contributions (AVS, AD, LPP, etc.). Italian IRPEF is a progressive tax (23% up to €28,000, 35% up to €50,000, 43% more) applied by Italy. In 730, the tax credit recognizes the smaller of the two amounts. If Switzerland withholds more than the IRPEF, you receive reimbursement; otherwise you pay the difference.

How to calculate Ticino source tax (cross-border guide)

Di Marco Ferrari · Published on 22 August 2026

Frontalier with tablet showing tax calculator interface, Lugano and lake view in background

Practical guide to the calculation of the tax at source for border workers Ticino-Italy: rates, 2024 deductibles, tax credit in 730 and interactive simulator.

Context

In a nutshell

Tax at source withheld ONLY by the Swiss employer (not in both countries)
New Frontier Agreement: from 1 January 2024, deductible €7,500 (old) or €10,000 (new)
Italian tax credit: recovery in 730 (EC framework), avoids double taxation
SVizzere rates: AVS/AI/IPG 5.3%, AD/AC 1.1%, LPP 7–18% by age group

Key facts

What: Tax at source on income from employment
When: Effective from 1 January 2024 (New Frontier Agreement)
Where: Switzerland (withheld in paycheck); Italy (credit in 730)
Who: Border workers with G Permit (classified as old or new from 17 July 2023)
Amount: Deductible €7,500 (old border guards, 2024–2033) or €10,000 (new)
Entry into force: 1 January 2024, following signature 23 December 2020
Basic Convention: Italy-Switzerland of 9 December 1976

The New Frontier Agreement, signed on 23 December 2020 and entered into force on 1 January 2024, has redesigned the rules of tax at source for those who cross the borders between Ticino and Italy on a daily basis. For the border worker who works in Switzerland and resides in Italy, the tax at source is withheld ONLY by the Swiss employer. It does not happen, contrary to what is sometimes believed, in both countries.

The Agreement between Italy and Switzerland, signed on 9 December 1976, provides that Switzerland has the exclusive right to tax the income from employment of those who reside in Italy but work in the territory

Operational details

How to calculate: Swiss rates and contributions

Tax at source in Switzerland is not a single tax, but an aggregate of contributions and taxes paid by the employee on the paycheck. The current federal rates are:

AVS/AI/IPG (social security, disability insurance): 5.3% of gross salary
AD/AC (Unemployment and Skills Accumulation Insurance): 1.1% up to a maximum income of CHF 148'200
LAINF (accident insurance): 0.7-1.5% depending on the sector of work
LPP (company pension fund): 7–18% depending on the age group (from 25 years onwards)

All these payments constitute the withholding tax that appears on the Swiss paycheck of the border worker. The calculation is crude: the gross salary is reduced by these contributions before any cantonal or municipal tax deduction. Switzerland, in fact, uses an early withholding system that extracts contributions directly and leaves the subject net of any further cantonal tax debts.

The calcolatore dedicato on our site allows you to simulate these amounts based on the gross salary, age group and deductibles (€7,500 or €10,000) applied since 2024. The rates shown are based on federal regulations; always check with the Swiss employer the specific amounts withheld, as the Ticino cantonal rates may vary annually.

Comparison scenario: before vs after the New 2024 Agreement

Before 1 January 2024, the

Useful tools for your case

To verify your within/over 20 km tax scenario, use the net salary calculator and the tax return guide.

Key points

Declaration Procedure and Deadlines

Every fiscal year, the border resident has the obligation to declare the Swiss work income to the Italian Revenue Agency. The steps are simple:

1. Request the Swiss employer for the salary certificate (Jahreslohnausweis or equivalent documentation) showing gross, deductions, contributions, and any applicable exemption. 2. Complete the Italian 730 model in the section dedicated to foreign income (CE table). Declare the annual gross income and the amount of foreign taxes withheld. 3. Communicate the data at the 730 presentation at the Italian CAF/patronato or via telematic agency. 4. The Italian Revenue Agency recognizes the tax credit and calculates the refund or payment due.

The deadline for presenting the 730 model is the 30th April of the following year relative to the income period. For example, the 2025 Swiss work income must be declared by 30th April 2026. The Swiss salary certificate represents the main supporting documentation; keep it in case of Italian Revenue Agency controls.

Using the Simulator

On our website, the interactive calculator is designed to simulate the withholding tax based on real or hypothetical data. The tool allows you to enter:

Annual gross salary (in CHF)
Canton of work (Ticino)
Age range (for LPP calculation from 25 years)
Applicable exemption (€7,500 for old border residents, €10,000 for new ones, starting from 2024)

…

Frequently Asked Questions

Who among the frontier workers is exempt from the tax at source?: There is no real exemption, but a deductible. Old frontiersmen (already such before 17 July 2023) benefit from €7,500 of income not subject to withholding tax until 2033, while new frontiermen have €10,000. In addition to the deductible, Swiss withholding tax (AVS/AI/IPG 5.3%, AD/AC 1.1%, etc.) applies normally. Italy then recognized a tax credit in 730 to avoid double taxation.
How do I recover the source tax paid in Switzerland?: Using the Italian form 730, filling in the CE (Income from foreign sources) table with the Swiss gross income and the amount of the withholding tax actually paid. The Revenue Agency compares the Swiss withholding tax with the personal income tax due (23–43% in stages) and grants credit for the lower amount. If the withholding tax is higher, you receive a refund; if lower, you pay the difference.
What source tax rates apply in 2024-2025?: The current rates are: AVS/AI/IPG 5.3% (employee contribution), AD/AC 1.1% up to CHF 148'200, LAINF 0.7-1.5% (by sector), LPP 7–18% by age group (from 25 years). These federal and cantonal rates apply on the paycheck. Check with the Swiss employer the total withheld, as Ticino cantonal rates may vary.
When do I have to file the 730 declaration as a border worker?: By 30 April of the year following the income period. For example, 2025 income must be declared by April 30, 2026. Use the Swiss salary certificate (Jahreslohnausweis) as supporting documentation. Keep the documents for at least five years in case of control.
What is the difference between Swiss withholding tax and Italian personal income tax?: Swiss withholding tax is paid ONLY to Switzerland and is an aggregate of social security contributions (AVS, AD, LPP, etc.). Italian IRPEF is a progressive tax (23% up to €28,000, 35% up to €50,000, 43% more) applied by Italy. In 730, the tax credit recognizes the smaller of the two amounts. If Switzerland withholds more than the IRPEF, you receive reimbursement; otherwise you pay the difference.