How does the new tax regime work for frontier workers who live within 20 km from the Italian-Swiss border?

For new cross-border workers, the new tax agreement between Italy and Switzerland introduces concurrent taxation: Switzerland withholds at most 80% of the ordinary tax at source and Italy taxes the income above the 10,000 euro exemption, granting a credit for the Swiss tax to avoid double taxation. Old cross-border workers (who worked in Switzerland between 31 December 2018 and 17 July 2023) remain taxed only in Switzerland.

Can I use the tax allowance of 10,000 euros in Italy if my income in Switzerland is below that threshold?

Yes, the 10,000 euro allowance applies to annual gross income. If your income in Switzerland is lower, the share of income subject to IRPEF in Italy will be zero, but you still have to submit the tax return.

What are the main differences between the old and the new tax regime for frontier workers?

Since 1 January 2024, new cross-border workers are subject to concurrent taxation: Switzerland withholds at most 80% of the ordinary tax at source and Italy also taxes the income, granting a tax credit to avoid double taxation. Under the 1974 agreement the salary was taxed only in Switzerland, which is still the case for old cross-border workers under the transitional regime.

Tax Calculation for Cross-Border Workers Within 20 km of the Border

Di Marco Ferrari · Published on 27 February 2026 · Updated on 25 September 2026

Border crossing in Mendrisio with cars in line and mountains in the background.

A practical guide to calculating taxes for cross-border workers within 20 km of the Italy-Switzerland border, with examples and clarifications on the tax system.

Context

TL;DR

New tax regime for Italy-Switzerland border workers
New cross-border workers: Switzerland withholds at most 80% of the ordinary tax at source and Italy taxes the income with a tax credit; old cross-border workers are taxed only in Switzerland
10,000 euro exemption for cross-border workers

Key facts

Tax exemption: First 10,000 euros of annual income exempt from IRPEF in Italy
Swiss tax at source: 8.40% on 60,000 CHF (2026 table A0) and 6.70% for new cross-border workers (2026 table R0), for a single person without children
Tax credit: Italy grants a tax credit for taxes paid in Switzerland
Tax deadline: In 2026, 30 September for the 730 and 2 November for filing Redditi PF online (31 October falls on a Saturday)
Documentation: Keep the salary certificate (Form 11) issued by the Swiss employer
Border distance: Workers within 20 km of the border qualify for the exemption

Cross-border workers who live within 20 km of the Italy-Switzerland border and work in Ticino are subject to a specific tax regime that can raise questions. With the new tax agreement between Italy and Switzerland, in force since 17 July 2023 and applied from 1 January 2024, significant differences arise compared to the past, especially regarding the tax exemption and tax credit.

Old vs New Tax Regime

Until December 31, 2023, cross-border workers employed in Switzerland but residing in Italy were subject to the previous tax system: Switzerland withheld 100% of taxes at source (based on local rates), while Italian municipalities received a share of 'reimbursements'. However, for new cross-border workers the new agreement introduces concurrent taxation. In practice, they pay part of their taxes in Switzerland (at most 80% of the ordinary tax at source) and the rest in Italy, where IRPEF grants a credit for the Swiss tax to avoid double taxation. Old cross-border workers, who worked in Switzerland between 31 December 2018 and 17 July 2023, remain taxed only in Switzerland (Italian Revenue Agency circular 25/E).

📊 Key Data for 2026: For an annual income of 60,000 CHF (single, no children), the 2026 tables of the Ticino Tax Division set the tax at source at 5,040 CHF for an old cross-border worker (table A0, 8.40%) and 4,020 CHF for a new cross-border worker (table R0, 6.70%), who then also pays Italian taxes. The exemption for cross-border workers within 20 km of the border is set at 10,000 euros, which excludes part of the income from IRPEF calculations in Italy.

Operational details

How to Calculate Taxes?

Calculating taxes for cross-border workers within 20 km of the border requires a thorough understanding of the tax regulations in both countries. Here are the main points:

Tax exemption: For cross-border workers residing within 20 km of the border, the first 10,000 euros of annual income are exempt from IRPEF in Italy.
Swiss rates: On income earned in Ticino, cantonal and municipal rates apply. For example, under the 2026 tax-at-source tables the rate for a single person without children earning 60,000 CHF is 8.40% (table A0) and falls to 6.70% for new cross-border workers (table R0).
Tax credit: Italy grants a tax credit for taxes already paid in Switzerland. This credit is deducted from Italian IRPEF, avoiding double taxation.

It is essential to keep the salary certificate (Form 11) issued by the Swiss employer. This document will be crucial for filing tax returns in Italy.

💡 Practical Example: Marco, a resident of Como (within 20 km), is a new cross-border worker, single with no children, and earns 50,000 CHF annually in Ticino. Under table R0 2026 (5.40%) Switzerland withholds 2,700 CHF in tax at source; an old cross-border worker, taxed under table A0 (6.80%), would pay 3,400 CHF and no IRPEF. In Italy, assuming for simplicity an exchange rate of 1 CHF = 1.068 EUR (SNB average for August 2026), his salary is worth about 53,400 euros and the taxable base above the 10,000 euro exemption is about 43,400 euros. With the 2026 IRPEF rates (23% up to 28,000 euros, 33% up to 50,000, 43% above; Law 199/2025) the gross IRPEF is about 11,522 euros. The credit for the Swiss tax is about 2,344 euros: the 2,884 euros withheld in Ticino are reduced in the same proportion in which the foreign income enters the Italian taxable income (43,400 out of 53,400). The final balance then also depends on deductible social contributions, employee tax deductions and the regional and municipal surcharges, which vary with income and municipality.

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

Practical Tips for Cross-Border Workers

Keep all tax documents: The Swiss salary certificate and documentation of taxes paid are essential.
Calculate your taxes in advance: Use tools like the salary calculator to estimate taxes at source and net income.
Consult a tax professional: Regulations can be complex and subject to changes. Contact a tax consultant specializing in cross-border taxation.

⚠️ Attention! In 2026 the 730 must be filed by 30 September and Redditi PF online by 2 November (31 October falls on a Saturday). Plan ahead to avoid penalties.

For a personalized analysis of your situation and to calculate your net salary based on the new 2026 tax regime, use our salary calculator.

Sources: Italy-Switzerland agreement of 23 December 2020 (Law 83/2023) and circular 25/E of the Italian Revenue Agency; 2026 tax-at-source tables of the Ticino Tax Division; 2026 IRPEF rates (Law 199/2025) and 730/2026 instructions of the Italian Revenue Agency; average exchange rates of the Swiss National Bank. Data verified on 25 September 2026.

Frequently Asked Questions

How does the new tax regime work for frontier workers who live within 20 km from the Italian-Swiss border?: For new cross-border workers, the new tax agreement between Italy and Switzerland introduces concurrent taxation: Switzerland withholds at most 80% of the ordinary tax at source and Italy taxes the income above the 10,000 euro exemption, granting a credit for the Swiss tax to avoid double taxation. Old cross-border workers (who worked in Switzerland between 31 December 2018 and 17 July 2023) remain taxed only in Switzerland.
Can I use the tax allowance of 10,000 euros in Italy if my income in Switzerland is below that threshold?: Yes, the 10,000 euro allowance applies to annual gross income. If your income in Switzerland is lower, the share of income subject to IRPEF in Italy will be zero, but you still have to submit the tax return.
What are the main differences between the old and the new tax regime for frontier workers?: Since 1 January 2024, new cross-border workers are subject to concurrent taxation: Switzerland withholds at most 80% of the ordinary tax at source and Italy also taxes the income, granting a tax credit to avoid double taxation. Under the 1974 agreement the salary was taxed only in Switzerland, which is still the case for old cross-border workers under the transitional regime.