Childcare Costs: Which Expenses Are Tax-Deductible?

Childcare is a significant expense for many families in Switzerland. Whether daycare, after-school care, childminder or holiday supervision – costs can quickly add up. To ease the burden on families and promote the compatibility of work and family life, Swiss tax law allows the deduction of third-party childcare costs. This deduction was massively increased at federal level in 2023 and has been adjusted in many cantons as well.

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

Important note: Unless otherwise stated, amounts refer to the 2025 tax year. The maximum deductions are regularly adjusted as part of the cold progression offset.

Background: The Major Reform of 2023

Until the end of 2022, the maximum deduction for third-party childcare costs at direct federal tax level was only CHF 10,100 per child per year. As of 1 January 2023, this was more than doubled to CHF 25,000. The ceiling has since been adjusted for inflation (2024: CHF 25,500; 2025: CHF 25,800). Many cantons have also raised their ceilings, some to the same level as the federal government. The reform aims to strengthen work incentives and improve the compatibility of family and career from a tax perspective.

Conditions for the Deduction

The deduction for third-party childcare costs is subject to the following cumulative conditions (Art. 33 para. 3 DFTA):

1. Child's age: under 14The child must not yet have reached its 14th birthday. Costs incurred from the 14th birthday onwards are no longer deductible. This age limit applies uniformly at federal level and in most cantons.

2. Same householdThe child must live in the same household as the taxpayer who provides for its maintenance.

3. Connection with employment, education or inability to workThird-party care must be necessary because the taxpayer is employed, in education, or unable to care for the child due to health-related incapacity. Costs for care during the parents' leisure activities are not deductible.

For married couples living together, both spouses must simultaneously be employed, in education, or incapacitated for the deduction to be claimed. If only one spouse is employed and the other is not, the deduction is forfeited – as the non-working person could provide the care.

For single-parent families, it is sufficient that the single parent is employed, in education, or incapacitated.

Temporary unemployment also qualifies as employment, since the unemployed person must provide proof of childcare arrangements to the unemployment insurance in order to be considered available for placement.

4. Actual and documented third-party costsCosts must have actually been incurred for care by third parties or institutions and must be documented.

Deduction at Federal Level

Maximum deduction 2025

At direct federal tax level, up to CHF 25,800 per child per year in documented third-party childcare costs can be deducted (2025 tax year, after inflation adjustment). The ceiling applies per child.

Which forms of care are deductible?

Deductible costs include in particular:

• Daycare centres and crèches (day fees excluding meal costs)
• Childminder families and childminders (on a professional basis)
• After-school care and extracurricular supervision
• Nannies and au pairs, provided they are formally employed (employment contract, social insurance contributions). For nannies/au pairs who also do housework, half of the net salary can be claimed as childcare costs as a flat rate
• Day schools and boarding schools: A flat rate of CHF 1,200 per child per year as the care component
• Holiday care programmes: Subject to cantonal deductions (e.g. Canton of Bern: 50% of actual costs, max. CHF 250 per week)

Meal costs: Reduction required

If meal costs (main meals) are included in the childcare fees – which is regularly the case with daycare centres – these must be deducted. The rates from the FTA guideline on "Benefits in kind for employees" apply. In practice, meal costs are often shown separately on the daycare invoice. If not, a reduction must be made.

Cantonal Ceilings

The cantons set their own ceilings for cantonal and municipal taxes. Since the federal reform of 2023, many cantons have followed suit, while others have not. The differences are considerable.

Examples (2025 tax year, cantonal tax):

• Canton of Zurich: CHF 25,000 per child (aligned with federal level)
• Canton of Bern: CHF 16,000 per child
• Canton of Schwyz: CHF 6,000 per child (cantonal); CHF 25,800 (federal tax) – the difference has a significant practical impact
• Canton of Zug: Deduction possible, cantonal ceiling lower than federal level; however, Zug also offers a self-care deduction
• Canton of Geneva: Ceiling aligned with federal level

The cantonal guide to the tax return is always the most reliable source for the current ceiling.

Which Costs Are NOT Deductible?

• Costs for leisure activities: Sports courses, music school, ballet, scouts, playgroups, tutoring – even if they coincide with working hours, these do not constitute care
• Care outside working/education hours: Babysitting in the evening for a restaurant visit is not deductible
• Self-care: If a parent cares for the child themselves (e.g. on a part-time basis), these "self-provided services" cannot be deducted (exception: some cantons offer a self-care deduction, see below)
• Pure household costs for nanny/au pair: Only the childcare portion is deductible, not the housework portion
• Private favours without cost documentation: Occasional babysitting by friends or neighbours without payment and documentation

Special case: Care by grandparents and relatives

Contrary to widespread belief, care by grandparents or other relatives can be deductible under certain conditions. The requirement is that documented actual expenses are reimbursed. The Canton of Bern, for example, explicitly recognises the reimbursement of actual travel costs to grandparents who travel to the child's home for childcare. An unpaid "favour" without cost documentation is not deductible.

Self-Care Deduction: Selected Cantons

Some cantons – notably Zug, Lucerne and Valais – grant parents who forgo third-party care an additional self-care deduction. This supplements the child deduction and aims to improve the equal tax treatment of families with different care models. There is no self-care deduction at federal level.

Division for Separated Parents

Special rules apply for separated or divorced parents:

• The deduction generally belongs to the parent with whom the child lives and who holds parental authority
• With alternating custody, each parent may claim a maximum of half the permitted ceiling of documented costs. A different division must be jointly requested and documented
• The sum of both parents' deductions per child may not exceed the ceiling
• Each parent may only claim costs incurred during their custody period

Documentation and Declaration

Required documents

• Invoices from daycare centres, after-school care or childminder families (ideally with separate breakdown of care and meal costs)
• For nanny/au pair: Salary statement, employment contract, proof of social insurance contributions
• For reimbursements to grandparents: Statement of actual expenses with receipts
• Payment receipts (bank transfers, receipts)

Declaration in the tax return

Third-party childcare costs are declared as a general deduction (not as professional expenses) in the designated section of the tax return. In most cantons, a statement of costs paid with details of recipients must be enclosed with the tax return without being requested.

Note that federal and cantonal taxes may have different ceilings. Cantonal tax software generally applies the respective ceilings automatically.

Practical Examples

Example 1: Dual-income couple in Zurich, two children

A married couple (both working 80%) pay daycare and after-school care costs of CHF 32,000 per year for their two children (aged 3 and 7). The daycare invoice shows meal costs of CHF 2,400 and CHF 1,800 respectively. Deductible amounts:

• Child 1: CHF 18,000 – CHF 2,400 meals = CHF 15,600 (below the ceiling)
• Child 2: CHF 14,000 – CHF 1,800 meals = CHF 12,200 (below the ceiling)
• Total deduction cantonal tax ZH: CHF 27,800 (max. CHF 25,000 per child, not exceeded)
• Total deduction federal tax: CHF 27,800 (max. CHF 25,800 per child, not exceeded)

Example 2: Single mother in Bern

A single mother (100% employed) pays CHF 24,000 per year in daycare costs for her child (age 5), of which CHF 3,600 is for meals. Deductible care costs: CHF 20,400.

• Cantonal tax Bern: Deduction CHF 16,000 (ceiling reached)
• Federal tax: Deduction CHF 20,400 (below the CHF 25,800 ceiling)

Example 3: Couple, one parent not working

A couple in Zurich: the father works 100%, the mother does not work. They send their child (age 2) to daycare two days per week.

Result: No deduction possible. For married couples, both spouses must simultaneously be employed, in education or incapacitated. Since the mother is not employed and could provide the care, the deduction is forfeited.

Common Mistakes and Tips

Common Mistakes

• Not deducting the meal portion: Many parents claim the full daycare invoice without removing the meal costs.
• Claiming deduction when only one spouse works: For married couples, the deduction requires both partners to be simultaneously employed/in education/incapacitated.
• Child over 14: The deduction only applies for children under 14.
• Declaring leisure costs as childcare: Sports courses, music school, activity-focused holiday camps are not childcare costs.
• Ignoring different federal and cantonal ceilings: In many cantons, the cantonal ceiling is significantly lower than the federal ceiling.

Tips

• Request invoices that show care and meal costs separately from your daycare or after-school care provider.
• Always conclude a written contract with nannies, au pairs or childminders and correctly account for social insurance contributions.
• For grandparent care, check whether your canton recognises reimbursement of actual expenses as third-party childcare costs.
• When moving to another canton, note that cantonal ceilings may differ significantly.
• Check whether your canton offers a self-care deduction alongside the third-party care deduction (ZG, LU, VS).

Distinction from the Child Deduction

The third-party childcare cost deduction is frequently confused with the child deduction. These are two entirely independent deductions:

• Child deduction (social deduction): Flat-rate deduction per child, regardless of childcare costs. Federal tax CHF 6,800, cantonal amounts vary. Applies to all children (including over 14, as long as in initial education).
• Third-party childcare cost deduction: Deduction for documented actual third-party care costs. Only for children under 14. Federal tax max. CHF 25,800.

Both deductions can be combined – they are not mutually exclusive.

Conclusion

Since the massive increase in 2023, the third-party childcare cost deduction is one of the most effective tax instruments for families with young children. At federal tax level, up to CHF 25,800 per child per year can be deducted, while cantonal ceilings vary. It is essential to know the conditions precisely – particularly the age limit of 14, the requirement for both spouses to be simultaneously employed, and the correct treatment of meal costs. Those who keep their documentation in order and observe cantonal specificities can noticeably reduce their tax burden.