Income Tax Cut in Geneva
To anticipate your tax return for the fiscal year 2025. The major tax changes resulting from the vote on November 24, 2024.
One of these changes is a reduction in your taxes, from 11.4 % to 5.3 %, depending on your taxable income. The new scale will be applied when you file your tax return in 2026.
Bear in mind, however, that despite this tax change, the tax cut does not apply to advance payments. The tax authorities (AFC) base their calculations on the latest information available (such as your most recently filed tax return).
Increased Deduction for Child Care Expenses
To anticipate your 2025 tax return, it's important to know that the maximum tax deduction for childcare costs for children under the age of 14 has been increased for direct federal tax purposes. It rises from 25,500 to CHF 25,800. Each canton also implemented changes for this deduction.
Canton of Vaud
One of the tax changes is the maximum deduction for childcare costs, which increases from 13,000 to CHF 15,000 per child in the canton.
Canton of Geneva
For the canton of Geneva, the maximum deduction for actual childcare costs is CHF 25,000 per child. An indexation of 0,48 % rates will be applied from August 2025, which may also influence the deductible amount.
Canton of Valais
Valais has one of the most modest tax changes. The maximum deduction will rise from 3,110 to CHF 3,130 per child.
Canton of Jura and Bern
Although the exact amount of the new deduction has not yet been announced, a tax change similar to that of Valais can be expected.
Canton of Neuchâtel
No significant increases have been announced for fiscal year 2025. However, further cuts are planned for fiscal 2025.
Increased Deductions for Health Insurance Premiums
To anticipate your 2025 tax return, it's important to know that for direct federal tax, the cantons of Vaud, Jura and Valais are planning to increase deductions for insurance premiums. In these cantons, you will generally be able to deduct up to CHF 4,900.
Late Tax Payments to be Penalized More Severely
One of the major tax changes concerns late payment. When you pay your taxes late, you'll have to pay more in the tax year 2025. If you pay late, you'll have to pay an additional moratorium interest rate, which will now be higher. The following rates now apply:
- Berne: 4 % (formerly 3 %)
- Geneva: 3 % (formerly 2.5 %)
- Fribourg: 3.75 % (formerly 3 %)
- Vaud: 4.5 % (formerly 3 %)
Compensation for Caregivers
In the canton of Fribourg, compensation will be paid to relatives who have dependants to care for. The allowance is now set at CHF 35 per day, compared with 25 in the past.
Another major tax change to anticipate for your tax return is the removal of the ceiling. Previously, the allowance was capped at 7 x CHF 25 (CHF 175 in total). This capping has now been lifted, and all days of assistance are tax-deductible for the 2025 tax year.
Lower Tax Burden for Vaud and Neuchâtel
If you file your tax return in the canton of Vaud, for the 2025 tax year, your tax burden will be reduced by 3,5 %. For the canton of Neuchâtel, the reduction will amount to 1 %.
Frequently Asked Questions
What tax changes are planned for 2025?
2025 will be a year full of tax changes. In this article, we tell you everything that will change for your tax return in 2025.
Is income tax falling in Geneva?
Yes, to anticipate your 2025 tax return, you need to know that income tax in Geneva will fall following the vote on November 24, 2024. You can expect a reduction of between 11.4 % and 5.3 %, depending on your taxable income.
When does the tax cut apply in Geneva?
The new tax scale will be applied for the tax return you file in 2026, concerning income for the 2025 tax year.
Does the tax cut in Geneva apply to instalments?
No, the tax cut does not apply to advance payments. The FTA continues to use the latest tax data available.
What will change for the childcare expense deduction in 2025?
To anticipate your 2025 tax return, you need to know that the maximum deduction for childcare costs is increasing for direct federal tax: from CHF 25,500 to CHF 25,800. Adjustments are also being made at cantonal level.
What is the maximum deduction for childcare costs in the canton of Vaud?
In the canton of Vaud, the maximum deduction will rise from CHF 13,000 to CHF 15,000 per child from tax year 2025.
What is the deduction for childcare costs in the canton of Geneva?
In Geneva, the maximum deduction for actual childcare costs is CHF 25,000 per child, with rates indexed to 0.48 % from August 2025.
