What is the difference between old and new border crossers in terms of taxation?

Old frontier workers, already in service before 17 July 2023, have an exemption of €7,500 per year of taxable income (transitional regime 2024–2033). The new frontier workers benefit from a more generous deductible of €10,000 per year. Both see the source tax in Switzerland traced with tax credit in Italy via 730.

Where do I get taxed if I work in Switzerland and live in Ticino?

The income tax at source is only withheld in Switzerland (federal + cantonal Ticino). Italy avoids double taxation through the tax credit applied in form 730, EC framework. The Italy-Switzerland Convention of 9 December 1976 is the foundation of this regime.

What are AVS, AD/AC, LAINF and LPP that I see on my paycheck?

Compulsory Swiss social contributions are: AVS/AI/IPG (old-age pension, disability, maternity: 5.3%), AD/AC (unemployment: 1.1%), LAINF (accidents: 0.7-1.5%), LPP (occupational pension: 7–18% according to age, from 25 years). All are withheld directly on a paycheck by the Swiss employer.

How does the Italian 730 tax credit work?

In the EC framework of 730 declare the Swiss income and the total tax paid in Switzerland (federal + cantonal). The Revenue Agency calculates the tax credit: if the Swiss tax exceeds the Italian IRPEF due, the surplus is refunded; otherwise the IRPEF is reduced by the credit. There is no double taxation thanks to this mechanism.

Is LAMal a health tax?

No. LAMal is a mandatory Swiss health insurance for border workers with a G permit. Adult deductibles range from CHF 300 to CHF 2,500 per year, depending on the plan chosen at a sick fund. It does not appear as withheld in a paycheck, but must be signed independently by the border worker.

Payroll 2026: how to read it from the border within 20 km (cross-border guide)

Di Marco Ferrari · Published on 20 August 2026

Frontalier reviews 2026 Swiss payslip on tablet at Ticino-Italy border

New Agreement 2024: Swiss withholdings, Italian tax credit, exemption €7,500 (old) or €10,000 (new frontier workers). Calculate your actual net.

Context

In a nutshell

New Frontier Agreement in force from 1 January 2024
Old border guards: exemption €7,500; new: deductible €10,000
Tax at source in Switzerland; tax credit via 730
AVS/AI/IPG 5.3%, plus contributions for unemployment, accidents, LPP

Key facts

What: New tax regime for Italy-Switzerland border workers
When: Effective January 1, 2024 (agreement signed December 23, 2020)
Where: Canton Ticino and Switzerland, border crossing within 20 km of the border
Who: Governments Italy/Switzerland; AFC (Federal Contributions Administration)
Legal basis: Double Taxation Prevention Convention of 9 December 1976
Exemption: €7,500 per year (old frontier workers, transitional regime 2024–2033)
Deductible: €10,000 per year (new frontier workers from 17 July 2023)

On 23 December 2020, the Italian and Swiss governments signed the New Frontier Agreement, which entered into force on 1 January 2024 thanks to Italian ratification with Law 83 of 13 June 2023. For those who work in Switzerland and reside in Ticino (G permit, within 20 km of the border), this agreement significantly changes the way taxation is calculated and declared.

The withholding tax is only withheld in Switzerland, not in both countries. Italy avoids double taxation through the tax credit in form 730, EC framework. This mechanism, rooted in the Convention of 9 December 1976, allows the border worker to bring in

Operational details

How to read a 2026 Swiss paycheck

Documentation of a cross-border paycheck is often dense and requires attention. Each item has a specific meaning and contributes to the calculation of taxable income in Switzerland.

Structure analysis: from gross to net amount

Starting from a contractual gross (for example, hypothetical, CHF 85,000 per year), deductions are applied as follows:

Compulsory contribution:

AVS/AI/IPG at 5.3% = CHF 4,505
AD/AC at 1.1% = CHF 935
LAINF between 0.7-1.5% = CHF 595-1,275 (depends on sector)
LPP between 7–18% according to age = CHF 5,950-15,300 (range 25–34 years approx. 9%, therefore CHF 7,650)

Tax:

Federal Source Tax (estimate) = CHF 3,500-4,200
Ticino cantonal tax = CHF 1,200-1,800 (varies by civil status, children, residence)

Estimated annual net: CHF 62,000-66,000 (on a gross basis CHF 85,000).

It is crucial to keep each document of the paycheck, because these data are used for the Italian declaration via 730.

The role of the Italian tax credit

The border worker residing in Italy is obliged to declare Swiss income in the Italian form 730. Italian IRPEF is progressive: 23% up to €28,000, 35% between €28,001 and €50,000, 43% over €50,000. However, you do not pay double taxation because the tax paid in Switzerland (federal plus cantonal) is recognized as a tax credit in Italy.

Example: if a frontier worker has paid CHF 5,000 in taxes

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

Operational checklist for the cross-border worker 2026

Step 1: Identify your category

The first critical piece of data is knowing whether you are an 'old cross-border worker' (already in service before July 17, 2023, with a €7,500 exemption) or a 'new cross-border worker' (started after July 17, 2023, with a €10,000 allowance). This information determines your taxable income in both Switzerland and Italy.

Step 2: Gather payslip documentation

Keep every Swiss payslip (issued monthly or bi-monthly):

Contractual gross salary
AVS/AI/IPG deductions (5.3%)
AD/AC contributions (1.1%, up to CHF 148,200)
LAINF contributions (0.7–1.5%)
LPP contributions (7–18% depending on age bracket)
Federal withholding tax
Ticino cantonal withholding taxes

These will be needed to calculate the Italian tax credit and to check any tax refunds.

Step 3: Monitor the annual exemption limit

If you are an old cross-border worker, the first €7,500 of gross income each year is exempt. If you are a new cross-border worker, the limit is €10,000. Progressively sum all monthly/bi-monthly gross amounts from January to December and verify that the deductions respect these ceilings. If the amount exceeds the limit, the deduction should increase on the excess part (the employer automatically applies full federal/cantonal rates).

Step 4: Prepare the Italian Form 730 (May–June)

1. Gather the statement of account for total gross income from Switzerland (annual) 2. In section CE of Form 730, declare the foreign income earned in Switzerland 3. Attach documentation certifying total taxes paid in Switzerland (federal + cantonal) 4. Calculate the tax credit according to INPS/Agenzia Entrate tables 5. Submit Form 730 by the deadline (usually June 30 via a tax assistance center [CAF] or accountant)

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Frequently Asked Questions

What is the difference between old and new border crossers in terms of taxation?: Old frontier workers, already in service before 17 July 2023, have an exemption of €7,500 per year of taxable income (transitional regime 2024–2033). The new frontier workers benefit from a more generous deductible of €10,000 per year. Both see the source tax in Switzerland traced with tax credit in Italy via 730.
Where do I get taxed if I work in Switzerland and live in Ticino?: The income tax at source is only withheld in Switzerland (federal + cantonal Ticino). Italy avoids double taxation through the tax credit applied in form 730, EC framework. The Italy-Switzerland Convention of 9 December 1976 is the foundation of this regime.
What are AVS, AD/AC, LAINF and LPP that I see on my paycheck?: Compulsory Swiss social contributions are: AVS/AI/IPG (old-age pension, disability, maternity: 5.3%), AD/AC (unemployment: 1.1%), LAINF (accidents: 0.7-1.5%), LPP (occupational pension: 7–18% according to age, from 25 years). All are withheld directly on a paycheck by the Swiss employer.
How does the Italian 730 tax credit work?: In the EC framework of 730 declare the Swiss income and the total tax paid in Switzerland (federal + cantonal). The Revenue Agency calculates the tax credit: if the Swiss tax exceeds the Italian IRPEF due, the surplus is refunded; otherwise the IRPEF is reduced by the credit. There is no double taxation thanks to this mechanism.
Is LAMal a health tax?: No. LAMal is a mandatory Swiss health insurance for border workers with a G permit. Adult deductibles range from CHF 300 to CHF 2,500 per year, depending on the plan chosen at a sick fund. It does not appear as withheld in a paycheck, but must be signed independently by the border worker.