Canton Zug is known for attractive tax rates — but also for high rents. The Zug tax guide (Wegleitung) gives tenants two concrete levers to deduct part of those housing costs straight from taxable income. Used well, they cut your cantonal and communal tax noticeably.
Here is how the rental deduction and the rules for a weekly stay at the workplace work, what you can claim, and where the Zug tax office draws the line.
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1. The General Rental Deduction (Code 407)
This is one of the few cantonal advantages that most other Swiss cantons do not offer. If you rent in Zug, you can deduct a slice of your rent directly from taxable income.
The basic rule: The deduction is for self-rented homes that you actually live in. Homeowners cannot use it.
The lever: You may deduct 30 % of your net rent — that is the rent without utilities, garage or parking.
The cap: The maximum deduction is CHF 10,800 per year.
Important: The deduction only reduces your cantonal and communal taxes. For direct federal tax it does not apply.
2. Job Expense Lump Sum & Home Office (Code 201)
If you work from home, the standard job-expense lump sum is normally your tool of choice.
The deduction: A flat 3 % of your net salary for job-related costs (minimum CHF 2,000, maximum CHF 4,000 per year). This typically covers a private home office and other small work-related costs.
The golden rule: On home-office days the commute and external meal deductions fall away. You cannot work 100 % from home and at the same time claim commuting or meal allowances for the whole year — the tax office will adjust this.
3. The Weekly Stay at the Workplace (Code 201)
If your commute is long (in general at least 60 km one way) and you stay overnight at the workplace during the week, you may benefit substantially. The condition is that you return home regularly at the weekend and remain tax resident in Zug.
In that case the necessary extra costs for accommodation, meals at the workplace and travel home are deductible. Always attach a copy of your lease to the tax return.
The deductions depend on the type of accommodation you rent:
One-room studio (with bathroom and small kitchen)
The locally standard, effective rent is fully deductible. On top of that you get the simple meals deduction of CHF 3,200 per year (CHF 15 per day). If your employer subsidises meals (canteen, vouchers and similar), the deduction is halved to CHF 1,600 per year.
Multi-room flat
Only the prorated rent for one room is deductible (total rent divided by number of rooms). The same simple meals deduction of CHF 3,200 (or CHF 1,600 with subsidised canteen) applies.
Renting just a room
The locally standard, effective rent is fully deductible. Because you have no kitchen, the double meals deduction applies: CHF 6,400 per year (CHF 30 per day). With access to a canteen or cheap restaurants this drops to CHF 4,800 per year.
Travel costs
Travel costs for the regular weekend return to Zug are also deductible. Keep your train tickets as proof.
Two Worked Examples
Example 1: Sarah deducts her Zug rent
Sarah rents a flat in Zug for a net rent of CHF 2,200 per month (CHF 26,400 per year).
- Calculation: 30 % of CHF 26,400 = CHF 7,920.
- The amount stays below the cap of CHF 10,800.
- Sarah deducts the full CHF 7,920 from her cantonal and communal taxes.
Example 2: Marc is a weekly resident in Valais
Marc lives with his family in Zug and takes a new job in Canton Valais. The one-way commute is well above 60 km and daily travel is not reasonable, so he rents a small one-room studio near work for CHF 900 per month. He returns to Zug every weekend.
- Rent in Valais: CHF 10,800 per year — fully deductible.
- Meals away from home: CHF 3,200 per year (simple deduction).
- Travel home: weekly train tickets between Valais and Zug.
- And in parallel: for the family flat in Zug, Marc still claims the regular Code 407 rental deduction.
Together this lowers his taxable income substantially — both cantonally and at federal level.
How FIN can support you
Filing your Zug tax return on your own takes time and carries real risk: a missed Code 407 line or an unsubstantiated weekly-stay deduction quickly costs hundreds of francs. We file your return cleanly, with all deductions documented and ready for the tax office.
Clear flat rates, no paperwork, one point of contact — see how the Zug tax return works with FIN. If you also want a broader view of what is deductible in Zug, our top 5 Zug deductions overview covers insurance, education, Pillar 3a, pension buy-ins and childcare.
Sources and Further Information
The figures and codes follow the Zug tax guide (Wegleitung) for individual taxpayers. The cantonal forms and the online filing portal are available from the Cantonal Tax Office of Zug .