Childcare Costs: Which Expenses Are Tax-Deductible?

Childcare is a significant expense for many families in Switzerland. Whether it’s daycare, after-school care, a nanny, or holiday camps, costs can quickly add up. Swiss tax law allows certain deductions for childcare costs to financially support families. These deductions apply both federally and at the cantonal level, with varying amounts and rules.

This article explains which childcare costs are tax-deductible, the maximum deductions, and what documentation is required.

Principles of the Deductions

Purpose of the Regulation

The tax treatment of childcare costs aims to enable parents to remain employed or pursue education while their children are cared for.

Requirements

• Both parents must be employed or undergoing education/training.
• The care must be organized externally (no family members providing care).
• Effective proof of costs is required (invoices, receipts).

Deduction Options at the Federal Level

Maximum Amount

Up to CHF 25,000 per child per year can be deducted for childcare costs at the federal level (as of 2025).

Deductible Childcare

• Daycare centers and nurseries
• Nannies with a formal contract
• After-school care and supplementary school programs
• Holiday care or camps (as long as childcare is the primary purpose)

Differences Between Cantons

Each canton sets its own maximum deduction amounts. Examples (2025):

• Zurich: up to CHF 10,100 per child
• Bern: up to CHF 12,000 per child
• Geneva: up to CHF 25,000 per child
• Zug: up to CHF 6,000 per child

The deductible amounts can therefore vary significantly depending on your place of residence.

Costs That Are Not Deductible

Not all expenses related to children qualify as deductible childcare costs. Non-deductible costs include:

• Care by grandparents or other family members without a formal contract
• Tutoring or extracurricular activities (sports, music) that are not purely care-related
• Food and travel costs associated with childcare

Documentation and Declaration

Required Proof

• Invoices from daycare centers or after-school programs
• Contracts with nannies
• Proof of payment (e.g., bank transfers)

Tax Declaration

Childcare costs must be declared in the designated section of the tax return and supported by documentation.

Practical Examples

Example 1: Family in Zurich

A couple pays CHF 20,000 per year for childcare for two children. In Zurich, the maximum deductible per child is CHF 10,100, so the total deductible amount is CHF 20,200.

Example 2: Single Mother in Geneva

A single mother pays CHF 15,000 in childcare costs for her child. Since Geneva allows deductions up to CHF 25,000, she can claim the full amount.

Common Mistakes and Tips

Common Mistakes

• Claiming care by relatives without a contract as deductible
• Failing to submit documentation
• Claiming deductions for extracurricular activities or tutoring

Tips

• Always have written contracts with caregivers or institutions
• Keep all invoices carefully
• Check federal and cantonal maximum limits
• Consider cantonal differences if moving

Conclusion

Childcare costs are tax-deductible in Switzerland if properly documented and provided by external caregivers. Deduction amounts vary widely between cantons, so parents should carefully review their tax return.

Submitting complete documentation and understanding cantonal rules can significantly reduce your tax burden.