Tax Deductions in Necuhâtel
- Deductions related to your professional activity
- General family deductions
- Deductions related to your personal situation
Deductions can be included or additional deductionsIncluded deductions are already taken into account when you file your taxes, so you don't need to mention them. To benefit from additional deductions, you must make a formal demand.
Included Deductions
In the canton of Neuchâtel, the following deductions are included in your taxes.
Contributions to AHV/IV, EO, IV and AANP
These contributions are entirely deducted from your taxes. This means that the entirety of what you contribute towards these social securities are deducted automatically.
- Employees: your employer automatically takes 5.3% of your salary to contribute towards AHV/IV, EO, IV and AANP
- Self-employed workers: you contribute a certain percentage depending on your salary
2nd Pillar Contributions
À Neuchâtel, les cotisations à la 2nd pillar are also deducted from your taxes in their entirety. They are taken directly from your salary.
Transportation Costs
In the canton of Neuchâtel, for transportation costs, no matter the kind of transportation used, 4’000 CHF are deducted from your taxes.
Work Expenses
These expenses include a few elements that are deemed necessary to the exercise of your professional activity. Are usually included in those:
- Work clothes
- Work software
- Work tools
The amount deducted is equivalent to 3% of your salary, with a minimum of 2’000 CHF and maximum of 4’000 CHF. If you believe you should be receiving higher deductions, you can make a demand with proof of your expenses.
Insurance Premiums
Whether for health or savings insurance premiums, the situation is similar to business expenses. What is deducted corresponds to 3% of your salary with a maximum amount that varies according to your personal situation.
Single person with or without children
2’500 CHF and 800 CHF per child
Married couple with a single income
4’900 CHF and 800 CHF per child
Married couple with 2 incomes
4’900 CHF and 800 CHF per child
- To simplify tax calculations, it is assumed that both spouses have the same salary, meaning that both spouses' incomes are supposed to be the same. However, a spouse's salary cannot exceed 5'725 CHF.
Modest Income Deductions
In the Neuchâtelregion, if you have a modest revenue, you are entitled to certain deductions to lighten the tax load. These deductions change according to your personal situation. The higher your income, the smaller the deductions.
Single person with or without children
2’100 CHF for a revenue of 26’000 CHF.
2’000 CHF for a revenue of 27’000 CHF.
1’900 CHF for a revenue of 28’000 CHF.
Progressive decrease until 0 CHF for a revenue of 47’000 CHF.
Single person with child(ren)
3’800 CHF for a revenue of 48’000 CHF.
3’600 CHF for a revenue of 49’000 CHF.
3’400 CHF for a revenue of CHF 50,000.
Progressive decrease until 0 CHF for a revenue of for a combined revenue of.
Married couple with a single income
3’800 CHF for a revenue of 48’000 CHF.
3’600 CHF for a revenue of 49’000 CHF, etc., jusqu’à 0 CHF pour 67’000 CHF.
If you are a married couple with 2 incomes, the modest income deduction is halved for both salaries. The amounts are similar to other deductions but they are systematically halved in 2 for each spouse.
For example:
CHF 3’800 for a revenue of 48’000 CHFis halved in two.
CHF 3’600 for a revenue of 49’000 CHFis also halved in two, until it reaches 0 CHF pour un revenu combiné de for a combined revenue of.
Deductions for Children
Once again, these deductions vary according to your personal situation. For each minor child, 7'200 are deducted, unless you're a married couple. If that's your case, you will receive half of 7'200 CHF.
To further lighten the tax load, there are also additional deductions, at 200 CHF per child.
Additional Deductions
In Neuchâtel, certain deductions are deemed additional deductions and are not included in your taxes.
To get those additional deductions, you have to fill out a TOU (subsequent ordinary taxation) form and send it before TOU à envoyer par courrier avant le March 31st of the following year (for example, for the year 2023, you have until March 31st 2024).
If you are married, your spouse must also sign the TOU. Keep in mind that if your demand is accepted, you will be you will be subject to it until you are stop being subject to withholding tax.
3rd Pillar Contributions
The payments made towards your 3nd pillar are deductible as long as that amount does not go above 6’883 CHF a year.
This means that even if you contribute more than that amount in your 3rd pillar account, you will only be able to deduct 6’883 CHF. As you can see, this kind of account is interesting to have from a tax point of view.
Purchase of 2nd Pillar Contributions
In the Neuchâtel region, if you buy back years of 2nd pillar contributions, you can deduct the exact amount purchased.
Passive Interests
Like the purchase of 2nd pillarcontributions, you can deduct the interests that arise from personal debts (like credits, loans, etc.). This does not apply to mortgage interests.
Children Upkeep
The amounts you have paid towards a child's upkeep (e.g. alimony payments) up to the child's majority are similarly deducted. You can therefore deduct the exact amount you have paid.
Training Costs
As is the case in other cantons, you can usually deduct a certain amount for the training costs you might have incurred. In Neuchâtel, the maximum deductible amount is 12,000 CHF, with the conditions that:
- The training be related to your current job
- You are older than 20 years old
- You already have a secondary education degree
- You wish to obtain a degree that is not a secondary education degree
Medical Costs
After a 5% deduction from your revenue, you can deduct the amount you have paid for medical bills. Medical costs not covered by your insurance can be deducted but only for the portion that exceeds 5% of your net income.
Childcare Costs
For children under 14 years old, you can deduct childcare costs with a maximum amount of:
- 20'400 CHF for cantonal and communal tax
- 10'100 CHF for the federal tax
Other Deductions
Similarly to childcare costs, you can ask to deduct the payments you have made to political parties, with a maximum of:
- 5'000 CHF for the cantonal and communal tax
- 10'100 CHF for the federal tax
Other Deductions
If you believe you are entitled to additional deductions because you feel penalised by withholding tax, you can make a demand.
For example, if your ride to work is very long or your job demands you to incur high meal costs , you can ask to get more deductions.
Frequently Asked Questions
What tax deductions are available in the canton of Neuchâtel?
Deductions linked to your professional activity : travel expenses, business expenses, social security contributions.
General family deductions : insurance premiums, child deductions, childcare costs.
Deductions linked to your personal situation 2nd pillar contributions, donations to political parties, medical expenses.
How are AVS/AI, APG, AC and AANP contributions deducted in the canton of Neuchâtel?
AVS/AI, APG, AC and AANP contributions are entirely deductible from your taxes. Whether you are employed or self-employed, you can deduct the full amount paid for these compulsory insurances, which represent 5.3% of your gross salary for an employee.
What are the deductions for insurance premiums in Neuchâtel?
Insurance premiums are deductible for up to 3% of your salary.The maximum amount depends on your situation:
Single person with or without children: up to 2’500 CHF + 800 CHF per child.
Married couple with one income: up to 4’900 CHF + 800 CHF per child.
Married couple with two revenues similar deduction.
What deductions are available for low-income earners in Neuchâtel?
Deductions for low-income taxpayers depend on family situation and income. For example:
For a single person without children, the deduction amount starts at 2’100 CHF for a revenue of 26’000 CHF and decreases progressively until it reaches 0 for a revenue of 47’000 CHF.
For a married couple with one revenue, the deduction amount starts at 3’800 CHF for a revenue of 48’000 CHF.
