How does withholding tax change for cross-border workers in Ticino from 2026?
Answered with official sources — Tax and withholding
Updated 11 August 2026
Answer
From 1 January 2024 the new CH-IT cross-border agreement signed 23/12/2020 and ratified by Italian Law 13 June 2023 No. 83 is in force source: Fedlex SR 0.642.045.43. «New» cross-border workers (hired after 17/07/2023) are taxed at source in Switzerland at full rate and then declare income in Italy with a tax credit up to 80% of the Swiss levy source: Agenzia Entrate, Circolare 4/E 2024. «Old» cross-border workers keep Swiss-only taxation with rebates to Italian border municipalities until 2033. For 2026 the Italian IRPEF exemption rises to €10,000 and the flat healthcare deduction to €3,000 source: AFC Ticino, 2026 sheet.
Official sources
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Other questions on this topic
- What is the tax difference between «old» and «new» cross-border workers?
The watershed is 17 July 2023, the Agreement's entry into force. «Old» workers (employed in Ticino, Grigioni or Valais between 31/12/2018 and 17/07/2023 and residing within 20 km of the border) remain taxed only in Switzerland; Canton…
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The 1974 CH-IT Agreement and the 2020 Agreement provide that Switzerland remits to Italian border municipalities (Lombardy, Piemonte) a share of withholding tax on «old» cross-border workers: 38.8% for 2024-2033, then 0%.
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- Does the 20 km distance from the border affect my cross-border tax status?
The tax status of 'cross-border worker' requires residing in an Italian municipality whose territory falls, even partly, within 20 km as the crow flies from the Swiss border, plus returning to one's residence daily (or at least regularly).
- How do I compute the tax credit on Swiss tax already paid?
Italian TUIR art. 165 and the CH-IT Convention of 1976 govern the foreign-tax credit. The new cross-border worker adds to the IRPEF tax base the Swiss gross income converted at the yearly ECB average rate, applies IRPEF and regional…
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Voluntary buy-ins to the Swiss 2nd pillar (LPP Einkauf) are only partially deductible for the new cross-border worker: Italian TUIR art. 10 does not expressly allow LPP contributions exceeding the mandatory minimum as deductible charges.
- What is the €3,000 flat healthcare deduction for cross-border workers?
Italian budget law 2024 art. 1 para. 175 and L. 83/2023 art. 5 allow new cross-border workers to deduct a flat €3,000 from taxable income for mandatory Swiss health contributions (LAMal and LAINF).
- Which sections of Italian Redditi PF 2026 must a new cross-border worker fill?
The new cross-border worker must fill at least: section RC (foreign employment income, code 4), section CE I-A (foreign tax credit), section RW (tax monitoring of Swiss bank accounts and 2nd pillar over €15,000), section RP for deductions…
The information on this page is for guidance only and does not replace personal advice from an accountant, lawyer or union office. Tax, social-security and permit rules change frequently: always verify with the official sources linked in each answer.