What are the main deductions in the paycheck of a Swiss border worker in 2026?

The paycheck of an employed border worker in Switzerland includes: AVS/AI/IPG 5.3%, AD/AC 1.1% (with CHF 148'200 ceiling), LAINF 0.7–1.5%, LPP 7–18% according to age (from 25 years), and Swiss source tax calculated based on salary and marital status. All these items reduce the net with respect to the gross, but are mandatory by federal and cantonal law.

How does the €7,500 exemption in the New Frontier Agreement work?

Old frontier workers (hired before 17 July 2023) benefit from an exemption of €7,500 from Swiss taxable income, on a transitional basis until 2033. This means that the first stretch of income is not subject to Swiss source tax. New frontier workers benefit from a deductible of €10,000. The exemption applies in the Italian tax return (730, EC framework) and reduces the final personal income tax.

Do I have to pay taxes in both Switzerland and Italy?

No. Tax at source is only withheld in Switzerland by the employer. Italy avoids double taxation by recognizing a tax credit in the EC framework of 730 for the amount paid in Switzerland. This system, established by the New Frontier Agreement in force from 1 January 2024, protects frontier workers from double taxation.

Are there any specific deductions in the Swiss dependent child paycheck?

The New Agreement does not specify Swiss federal deductions for children in the paycheck. However, the exemption of €7.500/€10,000 applies to each border crossing regardless of marital status or number of children. Some cantons may provide additional family allowances, but they vary by canton and are not detailed in the new national agreement.

When do I have to file a tax return if I am a border worker?

The 730 declaration must be submitted by 31 May (ordinary deadline, except for annual extensions) to the Italian Revenue Agency. In the EC framework, declare Swiss labour income, tax paid at source, and benefits of the tax credit. Keep Swiss documentation (income certificates, tax receipts) for at least 5 years.

Border payroll 2026: net and family deductions (cross-border guide)

Di Marco Ferrari · Published on 20 August 2026

Swiss payslip document of a cross-border worker on desk with Alpine landscape visible through office window

New Frontier Agreement in force from 1 January 2024: how the Swiss paycheck works, AVS/LPP rates, €7.500/ exemption €10,000 and Italian tax credit.

Context

In a nutshell

New Frontier Agreement in force from 1 January 2024 (Law 83 IT, 13/6/2023)
Withholding tax withheld in Switzerland, refund in Italy through 730
Exemption €7,500 (old border guards) or €10,000 (new) from taxable income
AVS/AI/IPG rates 5.3%, LPP 7–18%, no double taxation

Key facts

When: 1 January 2024 (new agreement comes into force)
What: Border payroll structure with family protection
Who: Frontier workers hired before/after 17 July 2023
Where: Switzerland (Ticino, Valais, Graubünden)
Tax: Withholding tax in Switzerland, credit in Italian EC 730 framework
Exemption: €7,500 (old) / €10,000 (new) from taxable income
Scheme: Transitional 2024–2033 for exemption €7,500

The change in 2024: the new agreement

The New Frontier Agreement, signed on 23 December 2020, entered into force on 1 January 2024 and marks a crucial turning point in the taxation of Swiss border workers. Italian ratification came through Law 83 of 13 June 2023, making official the change of regime for hundreds of thousands of workers who every day cross the Brogeda, Chiasso and other bridges to the Canton of Ticino.

The key element: the tax at source remains withheld exclusively in Switzerland, excluding any double taxation. Italy, for its part, recognizes a tax credit in the EC framework of the tax return (form 730), eliminating the risk of

Operational details

How much is left in the pocket: the real net with family

Suppose a married frontier with one or more children working in Ticino. His gross salary in CHF is subject to the deductions mentioned above (AVS 5.3%, LPP, LAINF, Swiss source tax). After all the reductions, the net calculated in Switzerland is lower than the gross, sometimes by 25-30% depending on the salary level.

The CHF-EUR exchange rate is not indifferent. If the frontier converts his net from CHF to EUR to live in Italy, the exchange rate reduces the purchasing power even further, although the cost of living in Ticino is higher than that of the Lombardy border.

Where does the New Agreement come in: the exemption of €7,500 (or €10,000 for new frontiers) reduces the Swiss taxable base. This means that the first income bracket is not subject to source tax. If a frontier has an annual gross income (converted to EUR) of €50,000, the exemption of €7,500 reduces it to €42,500 for the Swiss tax calculation. At the Italian level, the 730 recognizes the Swiss tax credit and does not apply additional IRPEF on that part already taxed at source.

The family with children: protection and deductions

The New Agreement does not specify specific federal Swiss tax allowances for dependent children (such as federal deductions or supplementary family allowances in the agreement text). However, the exemption of €7,500/€10,000 applies regardless of marital status or number of children - it is a recognized protection for every frontier who falls into the old/new category. Some cantons may provide supplementary family allowances, but these vary by canton.

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Key points

Checklist operational annual for border workers with family

To maximize the net income and avoid errors in the income tax declaration, every border worker with children should follow this annual checklist:

1. January–February: Collect the documentation from the previous year (Swiss income certificates, tax withholding receipts, bank account statements, LPP contributions paid). Verify that the gross income declared by the Swiss payroll corresponds to the data source.

2. March–April: Fill out the Italian income tax declaration (730 or Unico for self-employed). In the CE section, insert the income from foreign work, the tax paid in Switzerland, and verify the exemption of €7,500 (old border workers) or €10,000 (new border workers).

3. May: Submit the 730 by the ordinary deadline (31 May, subject to annual extensions). If you choose a patronage or a tax consultant, send the documents at least a week in advance.

4. June–September: Wait for the refund or the payment of the IRPEF advance/salary. If the border worker has had unjustified deductions, it's time to ask for clarification from the Italian Revenue Agency.

5. Always: Keep all documents (pay slips, payment certificates, bank statements, employer documentation) for at least 5 years, in case of audit.

Digital tools and resources

To simplify the simulation of the payroll and understand how much tax will be paid, Frontaliere Ticino provides several tools:

Payroll calculator: estimates the net income starting from the gross income in CHF, applying the 2026 tax rates (AVS, LPP, LAINF, Swiss tax withholding).

Permit comparator G and B: understand which status is more convenient for your situation.

Guide to tax credit: detailed instructions for the 730 and the CE section.

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Frequently Asked Questions

What are the main deductions in the paycheck of a Swiss border worker in 2026?: The paycheck of an employed border worker in Switzerland includes: AVS/AI/IPG 5.3%, AD/AC 1.1% (with CHF 148'200 ceiling), LAINF 0.7–1.5%, LPP 7–18% according to age (from 25 years), and Swiss source tax calculated based on salary and marital status. All these items reduce the net with respect to the gross, but are mandatory by federal and cantonal law.
How does the €7,500 exemption in the New Frontier Agreement work?: Old frontier workers (hired before 17 July 2023) benefit from an exemption of €7,500 from Swiss taxable income, on a transitional basis until 2033. This means that the first stretch of income is not subject to Swiss source tax. New frontier workers benefit from a deductible of €10,000. The exemption applies in the Italian tax return (730, EC framework) and reduces the final personal income tax.
Do I have to pay taxes in both Switzerland and Italy?: No. Tax at source is only withheld in Switzerland by the employer. Italy avoids double taxation by recognizing a tax credit in the EC framework of 730 for the amount paid in Switzerland. This system, established by the New Frontier Agreement in force from 1 January 2024, protects frontier workers from double taxation.
Are there any specific deductions in the Swiss dependent child paycheck?: The New Agreement does not specify Swiss federal deductions for children in the paycheck. However, the exemption of €7.500/€10,000 applies to each border crossing regardless of marital status or number of children. Some cantons may provide additional family allowances, but they vary by canton and are not detailed in the new national agreement.
When do I have to file a tax return if I am a border worker?: The 730 declaration must be submitted by 31 May (ordinary deadline, except for annual extensions) to the Italian Revenue Agency. In the EC framework, declare Swiss labour income, tax paid at source, and benefits of the tax credit. Keep Swiss documentation (income certificates, tax receipts) for at least 5 years.