Is the quellensteuer retained even if I work for an Italian company but from Switzerland?

No. The quellensteuer applies when the place of work (source of income) is geographically in Switzerland. If your company is Italian and you work from home in Italy (also in smart working), the withholding is Italian, not Swiss. If, on the other hand, your company is Swiss and you work physically in Switzerland, or you have a contract with a Swiss employer who pays you from Switzerland even for remote work, then the quellensteuer is Swiss and Italy does not withhold anything. What matters is the location of the employer and/or the place of execution of the work.

What are the rate differences between Ticino, Graubünden, Valais and Bern in 2026?

The quellensteuer rates vary by canton and by income bracket. The Canton of Ticino has its own rates, as do Graubünden, Valais and Bern. In 2026, rates remain stable. For exact rates specific to the canton where you work, check the cantonal tax administration's website (e.g. DFF Ticino) or use Frontaliere Ticino's calculator for an automatic estimate based on your salary.

How do I know if I fall within the NOV threshold of CHF 120'000?

Check the annual gross total indicated in the December Lohnausweis (document you receive from the employer by February 28 of the following year). Add up all the monthly payments and any bonuses and bonuses. If the total is less than CHF 120'000, stay in the NOV and the Swiss quellensteuer is sufficient; in the case of 730 Italian you only apply the credit. If you exceed CHF 120'000, you will check on the 730 return if an additional Italian taxation emerges.

Is the deductible of €7,500 or €10,000 of the New Agreement automatic or do I have to request it?

The deductible should be applied automatically by the employer on the paycheck, because it is established by the New Frontier Agreement in force from 1 January 2024. However, not all offices are aligned: always check in your monthly paycheck that it has been deducted (about €625 or €833 per month depending on whether you are an old or new border worker). If it is not applied, report it immediately to the employer or contact the AFC.

If I change employer during the year, how is the deductible calculated?

The annual deductible of €7,500 or €10,000 applies to the total calendar year, regardless of how many employers you have had. If you work for company A for 6 months and for company B for 6 months, the total deductible is divided proportionally between the two employers, or concentrated at the first: it depends on how the employers coordinate and on the procedures of the AFC. Clarify with the staff offices of both employers to avoid overlap or omissions.

Tax at source 2026: Ticino rates (cross-border guide)

Di Marco Ferrari · Published on 22 August 2026

View of Bellinzona, capital of Canton Ticino where thousands of cross-border workers live

How does the quellensteuer work in the Canton of Ticino? Discover the 2026 rates, the rebates, the New Deal deductible and the NOV threshold of CHF 120'000.

Context

In a nutshell

Quellensteuer: Swiss source tax withheld ONLY at the time of salary payment
New Agreement Deductible: €7,500 per year (old frontier workers until 2033) or €10,000 (new frontier workers)
Threshold NOV CHF 120'000: below this amount, Swiss withholding tax is sufficient in Italy
Recognised vouchers: AVS/AI/IPG 5.3%, LPP 7-18% by age group, LAMal, commuting expenses

Key facts

What: Tax at source (Quellensteuer) on employee income in Switzerland
When: Applied continuously from 1 January 2024 (New Agreement in force)
Where: Canton Ticino, Graubünden, Valais, Bern (with own rates)
Who: Border workers resident in Italy who work in Switzerland
Exemption: €7,500 (frontier workers active before 17/7/2023) or €10,000 (new)
Legal basis: Italian-Swiss double taxation agreement (9 December 1976), New Frontier Agreement (23 December 2020)

The quellensteuer is the tax on the source of employment income applied in Switzerland at the time of remuneration. For the Ticino-Italy border crossing, this is the crucial moment: Switzerland withholds directly from the paycheck; Italy does not apply any withholding tax and subsequently recognizes the tax credit in declaration 730 (EC framework) to avoid double taxation, in accordance with the Italian-Swiss Convention of 9 December 1976.

The New Frontier Agreement, signed on 23 December 2020 and entered into force on 1 January

Operational details

Calculation of quellensteuer and franchise mechanism

The quellensteuer is calculated every month (or per pay period) on the basis of the gross salary, after deducting the subsidies recognised and, from the validity of the New Agreement (1 January 2024), the annual deductible divided into monthly instalments. A border worker with a gross annual salary of CHF 80,000 and a deductible of €7,500 (about CHF 8,000) has the calculation applied by the employer on a basis (CHF80,000 - CHF 8,000 = CHF72,000), then submitted to the Ticino steuer according to the cantonal rates in force.

The annual gross amount, the monthly allowances, and the deductible applied appear in the Lohnausweis (annual pay slip document) that the employer delivers by February 28 of the following year. This document is fundamental for the Italian declaration 730, because the Revenue Agency uses the total of the annual quellensteuer paid to calculate the tax credit.

The NOV Threshold: CHF 120,000 and what changes beyond this amount

NOV stands for "Notation Ohne Voranmeldung" (communication without notice). This Swiss technical term indicates an income limit within which withholding tax is considered final and does not require further fulfillment at the time of declaration. When a frontier earns less than CHF 120,000 gross per annum, the quellensteuer paid in Switzerland fully covers the tax due; in Italy, the frontier applies

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 procedure: how to check withholdings and prepare declaration 730

Each frontier worker should receive a monthly paycheck (Lohnausweis) where they are detailed: gross, withholding, bonuses, contributions, and net. The first thing is to check that they are correct:

1. Declared gross : Is it consistent with the contract? 2. Subsidies: have AVS/AI/IPG (5.3%), LPP (7-18% according to age), LAMal, commuting expenses been recognised? 3. New Agreement Deductible: Has it been applied? You should see a reduction of about €625 per month (€7,500 ÷ 12) or €833 per month (€10,000 ÷ 12) if you are an eligible frontier worker. 4. Net: Is the difference between gross, withholding and allowances correct?

If you notice discrepancies, report it immediately to your employer's personnel office in Switzerland. If the problem persists, you can contact the AFC (Federal Tax Administration), which oversees procedures at the Swiss federal level.

Italian declaration 730 and tax credit

Every year between May and June, the border worker must complete the Italian declaration 730. In the EC framework (Income from other States), it declares the total income received in Switzerland during the previous year (you will find it in the Lohnausweis of December) and the total quellensteuer paid. The Revenue Agency automatically recognizes the tax credit to avoid double taxation.

The reimbursement depends on the comparison between what was paid in Switzerland and what was due in

Evaluating a Ticino job offer? Simulate your net payslip: enter gross salary, marital status and municipality for a detailed breakdown.

Frequently Asked Questions

Is the quellensteuer retained even if I work for an Italian company but from Switzerland?: No. The quellensteuer applies when the place of work (source of income) is geographically in Switzerland. If your company is Italian and you work from home in Italy (also in smart working), the withholding is Italian, not Swiss. If, on the other hand, your company is Swiss and you work physically in Switzerland, or you have a contract with a Swiss employer who pays you from Switzerland even for remote work, then the quellensteuer is Swiss and Italy does not withhold anything. What matters is the
What are the rate differences between Ticino, Graubünden, Valais and Bern in 2026?: The quellensteuer rates vary by canton and by income bracket. The Canton of Ticino has its own rates, as do Graubünden, Valais and Bern. In 2026, rates remain stable. For exact rates specific to the canton where you work, check the cantonal tax administration's website (e.g. DFF Ticino) or use Frontaliere Ticino's calculator for an automatic estimate based on your salary.
How do I know if I fall within the NOV threshold of CHF 120'000?: Check the annual gross total indicated in the December Lohnausweis (document you receive from the employer by February 28 of the following year). Add up all the monthly payments and any bonuses and bonuses. If the total is less than CHF 120'000, stay in the NOV and the Swiss quellensteuer is sufficient; in the case of 730 Italian you only apply the credit. If you exceed CHF 120'000, you will check on the 730 return if an additional Italian taxation emerges.
Is the deductible of €7,500 or €10,000 of the New Agreement automatic or do I have to request it?: The deductible should be applied automatically by the employer on the paycheck, because it is established by the New Frontier Agreement in force from 1 January 2024. However, not all offices are aligned: always check in your monthly paycheck that it has been deducted (about €625 or €833 per month depending on whether you are an old or new border worker). If it is not applied, report it immediately to the employer or contact the AFC.
If I change employer during the year, how is the deductible calculated?: The annual deductible of €7,500 or €10,000 applies to the total calendar year, regardless of how many employers you have had. If you work for company A for 6 months and for company B for 6 months, the total deductible is divided proportionally between the two employers, or concentrated at the first: it depends on how the employers coordinate and on the procedures of the AFC. Clarify with the staff offices of both employers to avoid overlap or omissions.