Border payroll 2026 over 20 km: complete guide (cross-border guide)

Context

In a nutshell

• Tax at source only in Switzerland for Italian border workers
• New Agreement signed on 23/12/2020, effective from 1 January 2024
• Old border guards: exemption €7,500; new: deductible €10,000
• Italy-Switzerland double taxation agreement of 9 December 1976

Key facts

• What: Withholding tax withheld exclusively in Switzerland on the income from work of border workers
• When: Regime in force from 1 January 2024 (New Agreement signed on 23 December 2020)
• Where: Canton of Ticino and the rest of Switzerland; avoidance of double taxation in Italy by means of a tax credit (EC framework of 730)
• Who: AFC/ESTV at the federal level and cantonal administrations of contributions for the tax part; INPS for social security
• Amount: Old frontier workers exemption €7,500 (transitional regime 2024–2033), new frontier workers exemption €10,000
• When: Italian ratification with Law 83 of 13 June 2023
• Who: SECO, SEM, SUVA among the reference bodies; INPS and Agenzia delle Entrate on the Italian side

From 1 January 2024, the paycheck of the Ticino border worker who works more than 20 km from the border follows completely new tax rules. The New Agreement between Italy and Switzerland, signed in Rome on 23 December 2020 and ratified by Italy with Law 83 of 13 June 2023, redesigned the taxation of frontier workers. Switzerland is not a member of the EU or the EEA: the bilateral relationship is still based on the Convention against Doubles

Operational details

The rates that appear on the paycheck of a Ticino border worker in 2026 are divided into three blocks: social contributions, taxes and insurance. Understanding the difference is essential to reading the slip.

Swiss social contributions on payroll

The AVS/AI/IPG part is equal to 5.3% borne by the employee (out of a total of 10.6% with AVS 2024 reform, half of which is borne by the worker). To this is added the AD (unemployment insurance) contribution of 1.1%, taken up to the ceiling of CHF 148,200. Beyond that threshold, the AC solidarity contribution is triggered, equal to 1% on high incomes. The LAINF premium (accident insurance) varies between 0.7% and 1.5% depending on the business risk. The LPP occupational pension, compulsory from the age of 25 for incomes above the coordination threshold, provides for rates between 7% and 18% depending on the age group.

Italian personal income tax and tax credit

For those who are over 20 km from the border and fall under the ordinary regime (not exempt), the Italian personal income tax is applied in three stages: 23% up to €28,000, 35% between €28,001 and €50,000, 43% over €50,000. Double taxation is avoided with the tax credit in the EC framework of model 730: the worker declares foreign income and discharges the tax already paid in Switzerland.

Scenario comparison: old vs. new border crossers

A border crossing already in place before 17 July 2023 enjoys the transitional regime 2024–2033

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

To navigate the 2026 payslip of a cross-border commuter beyond 20 km, it helps to follow a precise path: first identify the deductions, then calculate the real net pay, and finally plan the tax return in Italy.

2026 payslip operational checklist

1. Check the deductions on the pay slip. Make sure the following appear: withholding tax (cantonal and communal rate), OASI/DI/IC 5.3%, UI 1.1% (up to CHF 148,200), SUI 1% above the threshold, LAA 0.7–1.5%, LPP 7–18% by age bracket. If any of these items is missing, ask your employer for clarification.

2. Check the allowance or exemption. Old cross-border commuters have an exemption of up to €7,500, new ones up to €10,000. The amount must be compared with the gross annual income converted into euros at the reference exchange rate.

3. Check LAMal health insurance. G permit holders can choose between Swiss LAMal (with the right of option) and an equivalent Italian insurance, with standard deductibles between CHF 300 and CHF 2,500 for adults. Do not confuse LAMal with the so-called 'health tax': it is an insurance, not a tax.

4. Keep your pay slips and salary certificate. They are needed for the income tax return in Italy, where the foreign income must be reported in section RC of the 730 form and the foreign tax in section CE as a tax credit.

5. 2026 deadlines. The ordinary deadline for the 730 is the end of September. Repayments are calculated annually; the foreign income tax return is mandatory even when the net Italian tax is zero.

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