Becoming a freelancer in Switzerland offers independence and flexibility — but it also means managing your own taxes, social security, and pension planning.
If you’re a freelancer in Canton Zurich for example, understanding how much you actually take home from your revenue is essential for planning, saving, and pricing your services fairly.

This guide breaks it down clearly, step-by-step, with real numbers, context, and tax-smart strategies.

The Swiss Freelancer Tax Puzzle

What You’re Really Paying

As a self-employed person (“Einzelfirma” / sole proprietor), your obligations differ from employees. You must handle everything yourself — from AHV contributions to your tax returns. Let’s unpack the four pillars of what affects your take-home pay:

Type	Description	Rate / Rule
🧓 Social Security (AHV/IV/EO)	Old-age, disability, and survivor insurance.	10.0% for income ≥ CHF 60,500
🇨🇭 Federal Income Tax	Progressive, max 11.5%.	~ 3 % at CHF 80k income
🏠 Cantonal Tax (Zurich)	Based on “basic tax × cantonal multiplier.”	Multiplier = 98 % (2025)
🏙️ Municipal Tax (City of Zurich)	Based on “cantonal tax × municipal multiplier.”	Multiplier = 119 % (2025)

Other possible payments include health insurance premiums (mandatory but separate), optional 3a pension contributions, and possibly VAT if your turnover exceeds CHF 100k.

Concrete Example for Zurich

Let’s illustrate this with CHF 100,000 revenue and CHF 20,000 expenses, a realistic annual figure for an independent designer, consultant, or developer.

Calculate Your Business Profit

Revenue             CHF 100,000
– Expenses          CHF 20,000
= Net profit        CHF 80,000

This CHF 80k is your gross profit before social contributions and tax.

Deduct AHV/IV/EO (Social Security)

At this income level (≥ CHF 60,500), the flat 10 % rate applies:

10 % × 80,000 = CHF 8,000

These contributions cover you for retirement and disability — and are tax-deductible.

🧾 After AHV/IV/EO:

80,000 – 8,000 = 72,000

Calculate Your Taxes (Zurich 2025)

🧮 Federal Tax

At CHF 80k income, single, no kids, no church:

≈ CHF 2,410

🏛️ Cantonal Tax (Zurich)

Basic cantonal tax ≈ CHF 4,407
Apply 2025 multiplier (98 %) → CHF 4,319

🏙️ Municipal Tax (City of Zurich)

Cantonal tax × 119 % → CHF 5,244

Find Your Take-Home Pay

Net profit             80,000
– AHV/IV/EO            8,000
– All taxes            2,410 + 4,319 + 5,244 = 11,973
= Take-home ≈ 60,027

🎯 Final take-home pay: CHF 60,027
That’s an effective tax + social contribution rate of about 25 %.

Optimization Tip

Use Pillar 3a

If you’re self-employed without a 2nd-pillar pension, you can pay into Pillar 3a (private retirement savings) and deduct up to 20 % of your net income (max CHF 36,288 in 2025).

Example:

Net profit after AHV: 72,000
3a contribution (20 %) = 14,400
New taxable income = 57,600

Tax savings ≈ CHF 2,700 – 3,000, depending on your commune.
➡️ Real cash after tax and AHV ≈ CHF 50,800, but you’re also saving CHF 14,400 for retirement.

Tax Progression Snapshot

(Zurich, single person)

Net Profit	Approx. Take-Home	Effective Rate
CHF 40k	~ 34,000	14.8 %
CHF 60k	~ 47,600	20.8 %
CHF 80k	~ 60,000	25.0 %
CHF 125k	~ 87,000	30.4 %
CHF 170k	~ 111,500	34.5 %

👉 The Swiss tax system is progressive, so earning more pushes you into higher marginal brackets — and smart use of deductions (3a, insurance, business costs) can make a big difference.

What Can You Deduct?

Freelancers can deduct a wide range of business expenses that reduce taxable income:

🏢 Home office rent or coworking fees

💻 Equipment and professional software

🚗 Business travel or public-transport costs

📱 Phone & internet (business portion)

📚 Professional training & certifications

💳 Bank & accounting fees

🪙 AHV/IV/EO contributions

💰 Pillar 3a contributions (if eligible)

Keeping good records is crucial — you can use simplified bookkeeping if your annual revenue is below CHF 500,000.

Other Factors to Remember

🩺 Health Insurance

Mandatory for all residents, paid privately.
Premiums vary (CHF 250 – 500 / month typical).
Partially deductible for taxes.

💸 VAT (MWST)

You must register if your worldwide turnover ≥ CHF 100,000.
Standard rate = 8.1 % (2025).
Neutral in most B2B cases (you reclaim input VAT).

🕓 Quarterly Payments

Freelancers make provisional tax payments quarterly based on last year’s results — avoid surprises by setting aside 25–30 % of each invoice.

📍 Location Matters

Each municipality in Zurich has its own multiplier.
For instance:

City of Zurich: 119 %
Küsnacht: 80 %
Winterthur: 122 %

A few kilometres can change your tax bill by thousands.

Smart Tax Planning Checklist

Track every expense — it’s all deductible.

Pay AHV quarterly to avoid late-payment interest.

Open a 3a account (e.g., with VIAC, Frankly, or your bank).

Use accounting tools like Bexio, Klara, or Findea

Budget ~ 25–30 % of profit for taxes + AHV.

Consult a fiduciary once a year— they can often save you more than their fee.

Example Summary

The 100k Freelancer in Zurich

Category	Amount (CHF)
Revenue	100,000
Expenses	–20,000
Net Profit	80,000
AHV/IV/EO (10 %)	–8,000
Income Taxes	–11,973
Take-Home Pay	≈ 60,000
Optional 3a (–14,400)	saves ~ 3,000 tax
Net + Savings	≈ 50,800 cash + 14,400 pension

🚀
Final Thoughts

Switzerland’s freelancer tax system looks daunting, but once you understand the structure, it’s highly predictable.
For a Zurich freelancer earning CHF 100k with CHF 20k expenses:

You keep around CHF 60k cash, or CHF 50k + CHF 14k (with 3a).
Your effective tax + social burden is about 25 % – 30 %.
Careful deduction planning can reduce this further.

✨ Rule of thumb: Keep 70–75 % of your profit for yourself after all deductions — the rest goes to taxes and retirement security.

Cantonal comparative table

Assumptions:

Self-employed (Einzelfirma)
Single, no children, no church tax
Living in the main city of each canton (Lausanne – Vaud, Zurich – Zurich, Zug – Zug)
2025 tax multipliers applied
AHV/IV/EO = 10 %
No pillar 3a contribution (for simplicity)

Freelancer Take-Home Comparison
(2025, Estimated)

Canton	Net Profit (Before Deductions)	AHV/IV/EO (10 %)	Federal Tax	Cantonal + Communal Tax	Total Tax + Social	Estimated Take-Home Pay	Effective Rate
Vaud (Lausanne)	80 000	8 000	≈ 2 400	≈ 15 600	≈ 26 000	≈ 54 000 CHF	32 %
Zurich (Zürich City)	80 000	8 000	≈ 2 400	≈ 9 600	≈ 20 000	≈ 60 000 CHF	25 %
Zug (Zug City)	80 000	8 000	≈ 2 400	≈ 7 200	≈ 17 600	≈ 62 400 CHF	22 %

👇

Explanation of the Numbers

Net Profit (CHF 80,000)
Your income after business expenses (revenue – expenses).
AHV/IV/EO (10 %) = CHF 8,000
Mandatory old-age, disability, and survivor insurance contributions.
These payments are tax-deductible and apply uniformly across cantons.
Federal Tax
The same for all cantons. Around CHF 2,400 for a single person at this income.
Cantonal + Communal Tax
Varies widely by canton and municipality:
- Vaud (Lausanne) has high multipliers, so ~19–20 % effective total rate.
- Zurich (City) sits mid-range with ~12–13 % effective total rate.
- Zug (City) remains the lowest-tax canton, ~9–10 % effective total rate.
Total Tax + Social
Sum of all taxes (federal + cantonal + communal) and AHV/IV/EO.
Take-Home Pay
The amount left after taxes and social contributions — the freelancer’s real income.
Effective Rate
Total deductions ÷ Net Profit, showing what percentage of profit goes to taxes and AHV.

Key Insight 🔍

For the same CHF 100 000 in revenue and CHF 20 000 in expenses:

A freelancer in Zug keeps roughly CHF 62 400,
In Zurich, around CHF 60 000,
In Vaud, only CHF 54 000.

👉 That’s an ~8 000 CHF annual difference just from canton choice — without changing your business!

🇨🇭 AHV/IV/EO Contribution Brackets for the Self-Employed (2025)

Annual Net Self-Employed Income (CHF)	Contribution Rate (Total: AHV + IV + EO)	Notes
≥ 60,500	10.00 %	Full contribution rate (maximum)
Between 57,400 – 60,499	9.65 %
Between 54,300 – 57,399	9.30 %
Between 51,200 – 54,299	8.95 %
Between 48,100 – 51,199	8.60 %
Between 45,000 – 48,099	8.25 %
Between 41,900 – 44,999	7.90 %
Between 38,800 – 41,899	7.55 %
Between 35,700 – 38,799	7.20 %
Between 32,600 – 35,699	6.85 %
Between 29,500 – 32,599	6.50 %
Between 26,400 – 29,499	6.15 %

📌 Key Points to Remember

The rate decreases progressively for lower incomes (so-called degressive scale).
These contributions are tax-deductible for income tax purposes.
The minimum annual contribution is CHF 514 (even for tiny profits).
The 10 % rate applies fully from CHF 60,500 of net self-employed income upward.
Self-employed individuals do not pay ALV (unemployment insurance).
If you are both employed and self-employed, AHV applies to both income sources, but coordinated so you don’t double pay beyond the ceiling.

🇨🇭 Swiss Federal Income Tax Brackets 2025 — Single Person

Taxable Income (CHF)	Federal Tax Rate	Tax Calculation Rule
Up to 14,500	0 %	No federal income tax
14,501 – 31,600	0.77 %	`(Income − 14,500) × 0.77 %`
31,601 – 41,400	0.88 %	`131.65 + (Income − 31,600) × 0.88 %`
41,401 – 55,200	2.64 %	`219.80 + (Income − 41,400) × 2.64 %`
55,201 – 72,500	2.97 %	`590.00 + (Income − 55,200) × 2.97 %`
72,501 – 78,100	5.94 %	`1,097.65 + (Income − 72,500) × 5.94 %`
78,101 – 103,600	6.60 %	`1,430.75 + (Income − 78,100) × 6.60 %`
103,601 – 134,600	8.80 %	`3,072.05 + (Income − 103,600) × 8.80 %`
134,601 – 176,000	11.00 %	`5,808.05 + (Income − 134,600) × 11.00 %`
Over 176,000	11.50 %	`10,417.05 + (Income − 176,000) × 11.50 %`

Example

Federal Tax on CHF 80,000

Let’s compute step by step:

The income CHF 80,000 sits in the 78,101 – 103,600 bracket.

Apply the formula:

1,430.75 + (80,000 – 78,100) × 6.6 %  
= 1,430.75 + 1,900 × 0.066  
= 1,430.75 + 125.40  
≈ CHF 1,556

✅ Rounded to about CHF 1,550–1,600 in federal tax.

Practical Takeaway

At common freelancer income levels (CHF 60–120 k):

Federal tax is relatively modest (2–4 % of income).
Cantonal + communal taxes and AHV form the bulk of the total burden.

For instance, at CHF 80 k profit, you pay roughly:

Component	Approx. Amount	Share of Total
AHV/IV/EO	~8,000	~40 %
Federal tax	~1,600	~8 %
Cantonal + municipal tax (Zurich City)	~9,000	~45 %
Total	~18,600	~23 % total burden

How to Calculate Your Take-Home Pay