Income tax – rates and tax-free amounts

It is important in this respect that the home mortgage interest deduction and the premiums for the descending life insurance in relation to an owner-occupied home cannot be deducted based on the rate of 35.4%, but only based on the rate of 30.4%. The following rates apply for the national insurances in 2023:

Incapacity insurance (AOV)	25% on a maximum of USD 33.628
General Widow and Orphan Act (AWW)	1.3% on a maximum of USD 33.628
Employee contribution healthcare	0.5% on a maximum of USD 33.628

The tax-free sum and the corresponding allowances may be considered when calculating the income tax, the incapacity insurance, general widow and orphan act benefits, and the employee contribution to healthcare insurance. The following tax-free sum and allowances apply:

Tax-free sum	USD 17.352
Elderly allowance	USD 1.470

Rates preceding years 2018 to 2022

Year	35.4% income tax rate in case of a taxable sum greater than	Maximum premium base	Tax-free sum	Elderly allowance
2022	281.921	31.517	12.198	1.378
2021	290.640	32.493	12.575	1.421
2020	288.333	32.235	12.475	1.410
2019	282.957	31.635	12.242	1.384
2018	275.518	30.804	11.920	1.348