Quellensteuer (Withholding Tax) Explained

Written by Mohammed AliUpdated
Verified · Last updated 1 August 2026
Deducted from salaryRECOMMENDED

Step by step

  1. 1

    Who pays Quellensteuer?

    Holders of L and B permits without C permits or Swiss citizenship. If you're married to a Swiss citizen, you switch to standard taxation.

  2. 2

    Understand tariff codes

    Tariff A = single, no children. Tariff B = married, sole earner. Tariff C = married, both working. Tariff H = single parent. Your employer sets this based on your civil status.

  3. 3

    Check your payslip

    Quellensteuer appears as a line item on your monthly payslip. Verify the tariff code and rate match your personal situation.

  4. 4

    Request a correction (Nachträgliche ordentliche Veranlagung)

    If you have pillar 3a contributions, high commute costs, or other deductions, you can file a correction request. This often results in a refund.

  5. 5

    Know the CHF 120,000 threshold

    If your gross annual salary exceeds CHF 120,000, you must file a standard tax return. In some cantons (e.g. Geneva, Vaud) this is mandatory — you switch to 'ordentliche Veranlagung'.

  6. 6

    Don't miss the deadline

    Correction requests must be submitted by 31 March of the year following the tax year. Miss this and you lose the right to claim deductions.

How Quellensteuer is calculated

Your employer applies a cantonal Quellensteuer tariff to your gross monthly salary. The tariff is determined by your civil status (single, married, single-earner vs dual-earner), the number of children under 18 in your household, your church-tax status, and the canton you live in (not where you work, unless cross-border). The deduction shows up on every payslip as "Quellensteuer" / "impôt à la source". Federal, cantonal and communal tax are all bundled into one withholding.

The tariff letters explained

Tariff A applies to single people with no children — most young expat professionals. Tariff B is for married, single-earner households (one spouse working, one at home). Tariff C is for married couples where both spouses work — common in dual-career expat couples. Tariff H is for single parents with dependents. Tariffs L/M/N/P cover cross-border G-permit holders living in DE/FR/IT/AT and working in Switzerland.

When you must (or should) file an ordinary tax return

Two pathways take you out of pure Quellensteuer and into the regular tax-return system. Mandatory ordinary assessment (NOV) applies when your gross employment income exceeds CHF 120,000/year, you have significant non-salary income (rental, freelance, investment gains above thresholds), or you have worldwide wealth above the cantonal exemption threshold. On request (NOV auf Antrag), you can opt in to claim deductions that Quellensteuer does not include — Pillar 3a, Pillar 2 voluntary buy-ins, childcare costs, work-related training. Once you opt in, you are committed to ordinary assessment for the rest of your time in Switzerland.

Tarifkorrektur — when you can NOT file a full return

If you do not meet the NOV thresholds and do not want to commit to ordinary assessment, you can still claim specific items via a tariff correction. Eligible items vary by canton but typically include Pillar 3a contributions (up to CHF 7,258 in 2026), Pillar 2 voluntary buy-ins, childcare costs (Kita / crèche / daycare), work-related further training and re-training costs, and maintenance payments you actually paid. Deadline: submit the Tarifkorrektur form to your cantonal tax office by 31 March of the year following the tax year. Refunds typically land 3–6 months later.

Common refund situations

Started or stopped working mid-year — Quellensteuer is projected as if you worked the full year, often over-withholding. Joined or married mid-year — civil-status change is not reflected until the next year's tariff. Made a Pillar 3a contribution — never deducted automatically under pure Quellensteuer. Bought into Pillar 2 — same, requires either tariff correction or NOV.

Your next step

Turn this guide into action — run the numbers for your own situation, then work through the deadlines for your canton.

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Missing the 31 March deadline means you cannot claim deductions for that tax year.

If you earn above CHF 120,000, you must file a standard return — Quellensteuer alone is not sufficient.

People also asked

What is the difference between Quellensteuer and standard taxation?

Quellensteuer is deducted automatically by your employer using canton-specific tariff tables. Standard taxation requires you to file an annual return and pay tax yourself. Most B/L permit holders start with Quellensteuer.

Can I get a refund if I overpaid Quellensteuer?

Yes — file a correction request (Nachträgliche ordentliche Veranlagung) by 31 March. Common reasons: pillar 3a contributions, high commute, training costs, charitable donations.

What happens when I get a C permit?

You switch to standard taxation and must file annual tax returns. This happens automatically — your employer stops deducting Quellensteuer.

Which tariff code applies to me?

A = single no kids, B = married sole earner, C = married both working, H = single parent. Your employer sets this. If it's wrong, contact your cantonal tax office immediately.

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