Tax glossary
Direct federal tax
The direct federal tax is Switzerland's national income tax on individuals; it is declared on the same form as your cantonal return, assessed and collected by the cantons, and there is no federal wealth tax.
The direct federal tax is the only income tax levied by the Swiss Confederation itself. It is based on the Federal Act on Direct Federal Taxation (DBG). It applies to the income of individuals and the profits of companies, but not to wealth — wealth tax exists only at cantonal and municipal level.
There is no separate federal tax return. You declare your income and deductions once, on the cantonal return; for most items the form has two columns, one for cantonal tax and one for federal tax. The federal tax is assessed and collected by the cantons. In Zurich you therefore receive a single assessment covering both taxes, but separate invoices.
The rate schedule is steeply progressive. Low incomes pay no federal tax or only very little; for high incomes the rate rises to a maximum of 11.5% of taxable income. Unlike cantonal tax, there is no multiplier — the tariff in the law determines the amount directly. The cantons keep 21.2% of the federal tax they collect and pass on the rest to the Confederation.
Why the federal deductions are different
Because the Confederation and the canton have their own laws, many deductions differ in amount. Your taxable income for federal purposes is therefore almost never the same as for cantonal purposes. Some examples for tax year 2025:
- Commuting costs: federal max. CHF 3,300, Zurich max. CHF 5,200
- Child deduction: federal CHF 6,800, Zurich CHF 9,300 per child
- Training and education costs: federal max. CHF 13,000, Zurich max. CHF 12,400
- Political party donations: federal max. CHF 10,600, Zurich up to CHF 10,300 or CHF 20,600 for married couples
- Insurance premiums and the dual-earner deduction: separate amounts at federal level
Rates for single people, married couples and parents
The DBG has a basic rate for single people and a lower rate for married couples and single parents living with their children. On top of that there is a parental rate: for each child, a fixed amount is deducted directly from the tax due, not just from income. Amounts below CHF 25 are not collected at all.
Deductions and rate bands are adjusted for inflation every year. To estimate your tax, the official calculators of the Federal Tax Administration (ESTV) or the canton are the best starting point.
Due date and payment
In Zurich the direct federal tax falls due on 1 March of the following year — for tax year 2025, on 1 March 2026. You have 30 days to pay; after that, late-payment interest applies. Payments made in advance earn credit interest at a rate set annually by the Confederation.
- Provisional federal tax invoice usually early in the following year
- Final invoice after the assessment
- Objection to the assessment within 30 days, as for cantonal tax
Example: Commuting from Winterthur to Zug
A software engineer living in Winterthur drives to her job in Zug and has actual commuting costs of CHF 7,800 a year. For cantonal and municipal tax she can deduct CHF 5,200 of that, for the direct federal tax only CHF 3,300. She also pays CHF 12,800 for a professional course herself: CHF 12,400 is deductible at cantonal level, the full CHF 12,800 at federal level.
Her federal taxable income is therefore CHF 1,500 higher than her cantonal one (CHF 1,900 more because of commuting, CHF 400 less because of the course). Two different figures on the assessment notice are not a mistake but a deliberate feature of the system. We check both columns separately.
Frequently asked questions: Direct federal tax
Do I need a separate return for federal tax?
No. You complete the Zurich tax return; where federal and cantonal deductions differ, there is a second column for federal tax. The ZHprivateTax software, Zurich's official filing tool, calculates the figures automatically.
Why is my federal taxable income higher?
Usually because some federal deductions are lower, for example for commuting, children or insurance premiums. This is normal and not a sign of an error.
Do I pay federal tax if I'm taxed at source?
Yes. Tax at source already includes the federal share. With a subsequent ordinary assessment it is settled against your definitive tax.
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