To offset the effects of cold progression, the Federal Department of Finance (FDF) adjusts the tax rates and deductions for federal direct tax annually. The most recent changes apply to the 2027 tax year.
Since the last adjustment for cold progression a year ago, inflation has been 0.47 percent (as of June 30, 2026). Inflation is measured based on changes in the National Consumer Price Index (LIK). The adjustment takes effect as of the 2027 tax year and will first apply to the tax return to be filed in 2028 for the 2027 tax year.
The legally mandated adjustment ensures that taxpayers do not have to bear a higher tax burden due to inflation if their purchasing power has remained the same.
Starting with the 2027 tax year, the deduction for third-party childcare, among other things, will increase to 25,900 francs per child (previously 25,800 francs). For career-oriented education and training costs, up to 13,100 francs can now be deducted from taxes. That is 100 francs more than before.
The adjustment for cold progression results in changes across all tax brackets. Married couples will now pay taxes on taxable income starting at 29,900 francs (previously 29,700 francs). The top tax rate now applies to taxable incomes of 946,000 Swiss francs or more (previously 941,400 Swiss francs). In addition, the tax-free allowance for winnings from high-stakes games and online casino games increases to 1,076,100 Swiss francs (previously 1,071,000 Swiss francs).
The tax brackets in the appendix to the Withholding Tax Regulation will also be adjusted. There will be no changes to the deductions under the Professional Expenses Regulation, because the amounts remain the same when rounded.
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