Education Costs for Children: Tax Deductions and Financing Options

Education is one of the most important investments in a child's future for many families – but also a significant expense. Whether secondary school, vocational training, university studies or further education: parents often bear a large share of these costs. To ease the burden on families, Swiss tax law provides various deductions and relief measures.

This article explains which tax deductions families with children in education can claim, how much they amount to, and what other funding options are available.

Important note: Tax deductions for families with children involve a complex interplay of different deduction types at federal and cantonal levels. The cantons have considerable discretion in designing their systems. Unless otherwise stated, amounts refer to the 2025 tax year.

Overview of the Different Deduction Types

Swiss tax law provides several distinct relief measures for families with children in education. These are frequently confused:

1. Child Deduction (Social Deduction)

The child deduction is a flat-rate social deduction from taxable income, granted for each child regardless of actual education costs. It is available to parents who predominantly finance the maintenance of a minor child or an adult child in initial professional education.

Direct federal tax (2025): CHF 6,800 per child.

Cantonal level: Amounts vary significantly, for example:

• Canton of Zurich: CHF 9,000 per child (minor or in initial education)
• Canton of Bern: CHF 8,300 per child
• Canton of Aargau: varies by age (CHF 7,100 to CHF 11,100 for adult children in education)
• Canton of St. Gallen: CHF 7,200 (pre-school) to CHF 10,200 (in education)

2. Tax Reduction per Child (Federal Tax Only)

In addition to the child deduction, the direct federal tax grants a reduction of the tax amount (not from income) of CHF 263 per child (2025). This is deducted directly from the federal tax owed.

3. Education Cost Deduction (Cantonal Only)

Some cantons provide a separate education cost deduction for actual costs of the child's education (e.g. tuition fees, study materials, additional costs for out-of-town accommodation). This deduction does not exist at the federal tax level.

Examples:

• Canton of Bern: up to CHF 6,400 for education costs
• Canton of St. Gallen: up to CHF 13,000 for additional education costs
• Some cantons provide additional deductions for children living away from home during education (e.g. Obwalden: CHF 5,100; Nidwalden: CHF 5,600 to CHF 7,800)

4. Deduction for Own Training and Further Education Costs

The deduction for training and further education costs under Art. 33 para. 1 lit. j DFTA relates to the taxpayer's own career-oriented further education costs – not the education costs of their children. At the federal level, it amounts to a maximum of CHF 13,000 (2025). This deduction is available from the first upper secondary qualification (apprenticeship, baccalaureate) or from age 20.

5. Third-Party Childcare Deduction

For children under 14 who are cared for by third parties due to the parents' employment or education, a separate deduction applies. At the federal level, it amounts to a maximum of CHF 25,800 per child (2025). Cantonal amounts vary.

Requirements for the Child Deduction

Parents can claim the child deduction if the following conditions are met:

• The child is a minor, or
• the child is an adult in initial professional or academic education (e.g. secondary school, apprenticeship, university studies, higher vocational college)
• The parents predominantly finance the child's maintenance
• The child's own income does not exceed the cantonal threshold (varies; e.g. in the canton of Solothurn CHF 11,000)

Important: There is no age limit of 25 for the child deduction at the federal level. The child must simply be in initial education and economically dependent on the parents. However, some cantons do apply age limits (e.g. Zurich, Thurgau, Ticino, Geneva).

The deduction is generally available to the parent who predominantly finances the child's maintenance. For jointly assessed married couples, it is claimed in the joint tax return. Special rules apply for separated or unmarried parents.

Which Costs Are Deductible – and Which Are Not?

Covered by the Child Deduction (Flat-Rate)

The child deduction is a flat-rate amount and requires no documentation of individual education costs. It implicitly covers the additional expense of having children.

Cantonal Education Cost Deductions (Actual Costs, Where Applicable)

Where cantons provide a separate education cost deduction, the following costs can typically be claimed:

• Tuition and semester fees
• Examination fees
• Study materials and school supplies
• Additional costs for out-of-town accommodation and meals at the place of education (often as a flat rate)

Not Deductible

• Living costs that would arise regardless of education
• Leisure courses or non-academic activities
• Costs for primary education (public schools are free)
• Private school fees are regulated differently by canton – in many cantons they are not deductible

Other Funding Options

Training Allowances (Family Allowances)

The training allowance is a monthly payment from the mandatory family compensation fund, which parents receive for children in post-compulsory education (ages 16 to 25). It is paid regardless of parental income.

Minimum rates since 1 January 2025:

• Child allowance (up to age 16): at least CHF 215 per month (CHF 235 in mountain areas)
• Training allowance (ages 16–25, in education): at least CHF 268 per month (CHF 288 in mountain areas)

Around a quarter of cantons pay amounts above the minimum. For example, the canton of Valais pays up to CHF 585 for the first two children.

Important: Family allowances are taxable income and must be declared in the tax return.

Cantonal Scholarships and Education Loans

All cantons provide scholarships and/or education loans for individuals who cannot finance their own education and living costs. Awards are means-tested.

The intercantonal scholarship concordat (22 member cantons, 94% of the population) sets minimum standards:

• Upper secondary level (apprenticeship, baccalaureate): minimum CHF 12,000 per year
• Tertiary level (university, higher vocational education): minimum CHF 16,000 per year

Actual amounts may be higher depending on the canton. Scholarships do not need to be repaid. Loans must generally be repaid after completing education, often interest-free or at low interest rates.

Applications should be submitted to the cantonal scholarship office of the canton of residence, generally before the start of the academic year.

Private Foundations and Funds

Beyond state scholarships, numerous private foundations offer education grants. Universities often have their own social funds for students in financial difficulty.

Tax Optimization Through Pillar 3a

Pillar 3a primarily serves retirement provision, not education financing. Early withdrawal is only possible for narrowly defined purposes (home ownership, self-employment, emigration), not for financing children's education. However, the annual tax savings from Pillar 3a contributions can indirectly free up financial resources.

Practical Examples

Example 1: Student in Zurich

A married couple supports their 22-year-old daughter during her bachelor's studies at the University of Zurich. The daughter earns less than the income threshold from a part-time job. The parents can claim the following deductions:

• Child deduction Canton of Zurich: CHF 9,000 (social deduction, cantonal tax)
• Child deduction federal tax: CHF 6,800 (social deduction)
• Tax reduction federal tax: CHF 263 (deduction from tax amount)

The family also receives the training allowance of at least CHF 268 per month (CHF 3,216 per year), which however must be declared as income.

Example 2: Apprenticeship in Bern

A single mother supports her 17-year-old son during his apprenticeship as a chef. The son receives an apprentice wage, which counts as his own earned income and is taxed in his own name. The mother can claim:

• Child deduction Canton of Bern: CHF 8,300 (cantonal tax)
• Child deduction federal tax: CHF 6,800
• Education cost deduction Canton of Bern: Actual costs up to CHF 6,400 (e.g. for professional school materials, knife set)
• Tax reduction federal tax: CHF 263
• As a single parent, she also benefits from the more favourable tax rate (married persons' rate at the federal level)

Example 3: Adult Child in Master's Studies

A father supports his 24-year-old son, who is pursuing a Master's degree at ETH and lives in Zurich. The son has no significant income of his own. The father lives in the canton of St. Gallen.

• Child deduction Canton of St. Gallen: CHF 10,200 (child in education)
• Additional education cost deduction St. Gallen: up to CHF 13,000 for actual costs
• Child deduction federal tax: CHF 6,800
• Tax reduction federal tax: CHF 263

The father also checks whether his son can apply for a scholarship from the canton of St. Gallen.

Common Mistakes and Tips

Common Mistakes

• Confusing deduction types: The child deduction is a flat-rate social deduction – it does not require documentation of education costs. The further education cost deduction (CHF 13,000 federal tax) applies to the taxpayer's own costs, not to their children's.
• Forgetting the child deduction after age 18: The child deduction also applies for adult children in initial education, as long as the parents predominantly finance their maintenance.
• Incorrect treatment of apprentice wages: Earned income of minor children is generally treated as negligible by the tax authorities. From the age of majority, the wage must be taxed in the child's own name.
• Ignoring the reference date principle: The child deduction depends on whether the child is still in education at the end of the tax period (31 December). If the child completes education in September and is no longer in training at year-end, the deduction is forfeited.
• Failing to declare family allowances: Child and training allowances are taxable income and must be declared.

Tips

• Check the specific deductions of your canton of residence – the differences are substantial. The cantonal guide to the tax return is the most reliable source.
• For the federal tax, also claim the tax reduction of CHF 263 per child (this is automatically applied when the child deduction is declared).
• For separated parents: clarify early which parent claims the child deduction. The child deduction and the alimony deduction are generally mutually exclusive.
• Submit scholarship applications to the cantonal scholarship office well before the start of education.
• For children living away from home, check whether your canton provides an additional deduction for out-of-town education.
• Compare the child deduction with the support deduction: the two cannot be combined. The higher deduction applies.

Conclusion

Education in Switzerland is supported through an interplay of tax deductions, family allowances and cantonal scholarships. The most important tax lever is the child deduction, which as a flat-rate social deduction can be claimed at both federal level (CHF 6,800) and cantonal level (with widely varying amounts). Some cantons additionally provide specific deductions for actual education costs.

It is essential not to confuse the different types of deductions and to understand the cantonal specificities. Combined with training allowances and any scholarships, families can noticeably reduce their financial burden.