Tax Tip #8 – Health Insurance and Your Tax Return: How to Make the Most of Your Deductions

“An apple a day keeps the doctor away” – if only it were that simple. Even with a healthy lifestyle, medical costs can’t always be avoided. So how can you deduct health insurance premiums, medical expenses, and deductibles correctly on your Swiss tax return?

FIN explains what qualifies, how the cantons differ, and how a few practical tips can help you get the most out of your tax return.

Which Medical Expenses Are Tax-Deductible?

Most Swiss health insurers provide — upon request — a yearly summary of your premiums and medical expenses, which makes it easier to declare your health and accident costs in your tax return.

Generally, you can deduct medically necessary expenses that are not reimbursed by your insurance.

Overview of Deductible Medical Expenses

Doctor’s Visits & Hospital Costs

• General practitioners, specialists, hospital stays
• Medications and vaccinations
  

Dental Costs

• Treatments and corrections
• Dental hygiene
• Dental technician services
  

Alternative Medicine

• Treatments from certified naturopaths

Medical Aids & Equipment

• Glasses, contact lenses, laser eye surgery
• Hearing aids
• Medical devices and prosthetics

Therapies & Rehabilitation

• Massage therapy, spa treatments
• Occupational therapy, speech therapy, psychotherapy
  

Special Diets

• For medically diagnosed conditions such as diabetes or celiac disease
  

Tip:
Don’t forget pharmacy or drugstore purchases that are medically prescribed — these often qualify too.
Use Smart eTax to store receipts digitally and securely.

How to Enter Health Insurance Premiums and Medical Expenses

Both health insurance premiums and out-of-pocket medical costs can reduce your taxable income —
as long as they exceed the minimum deductible threshold (Selbstbehalt).

How to calculate it:

1. Add up all unreimbursed medical and accident costs.
   
2. Subtract your deductible according to your canton.
   
3. Enter the remaining amount on page 3 of your tax return:
   → “Additional Deductions – Medical and Accident Expenses” (with attachment).
   
   
   

Cantonal Differences: Medical Deductions and Health Premium Allowances

Each Swiss canton has its own threshold (Selbstbehalt) and maximum premium deduction.
Below is an overview of key cantonal rules.

Canton	Deductible Threshold	Deductible Costs	Flat Premium Allowance
Aargau	Net income × 5 ÷ 95	All costs above this threshold	Married CHF 6,400 / Others CHF 3,200 / + per child (see child allowance blog post)
Bern	5% of net income	All costs above 5%	With 2nd/3rd pillar: CHF 3,600 / 1,800; Without: CHF 5,400 / 2,700 / + CHF 700 per child
Zurich	5% of net income	All costs above 5%	With 2nd/3rd pillar: CHF 5,200 / 2,600; Without: CHF 7,800 / 3,900 / + CHF 1,300 per child
Lucerne	5% of net income	All costs above 5%	With 2nd/3rd pillar: CHF 5,000 / 2,600; Without: CHF 6,400 / 3,300 / + CHF 700 per child
St. Gallen	2% of net income	All costs above 2%	With 2nd/3rd pillar: CHF 6,400 / 3,200; Without: CHF 7,400 / 3,700 / + CHF 1,000 per child
Solothurn	5% of net income	All costs above 5%	With 2nd/3rd pillar: CHF 5,000 / 2,500; Without: CHF 7,500 / 3,750 / + CHF 650–975 per child
Basel-Landschaft	Net income × 5 ÷ 95	All costs above this amount	With 2nd/3rd pillar: CHF 4,000 / 2,000; Without: CHF 7,500 / 3,750 / + CHF 450 per child
Schwyz	3% of net income	All costs above 3%	With 2nd/3rd pillar: CHF 6,400 / 3,200; Without: CHF 9,600 / 4,800 / + CHF 400 per child

Federal Level (Direct Federal Tax)

Contribution Status	Married	Single / Others	Per Child
With 2nd or 3rd pillar	CHF 3,600	CHF 1,800	CHF 700
Without 2nd or 3rd pillar	CHF 5,400	CHF 2,700	CHF 700

Practical Tips for Your Tax Return

Tip 1:
Don’t overlook small items – even pharmacy receipts, drugstore products, or transport costs to therapies can count if medically necessary.

Tip 2:
Always enter the maximum allowable health insurance premium deduction in your tax return.

Conclusion: Use Health Deductions to Your Advantage

Health-related costs and insurance premiums are among the most valuable tax-deductible items in Switzerland.
With careful preparation, detailed documentation, and digital support, you can significantly lower your taxable income.

Those who track their expenses and understand cantonal differences not only save money – but stay financially healthy, too.

FIN – Clarity for your finances. Structure for your tax return.