Withholding Tax for Foreign Household Workers: What Employers Need to Know
Forget to withhold the tax and you still owe it - plus interest. The tax office catches up retroactively once it notices the missing deductions. The obligation applies whenever your household worker doesn't hold a C permit. This guide covers how the deduction works, which rate applies, and what changed with the 2021 reform.
Key Takeaways
- 1Foreign employees without a C settlement permit are subject to withholding tax - the employer deducts it directly from wages.
- 2In the simplified procedure (VAV), withholding tax is a flat 5% of gross wages - the same in all cantons.
- 3In the standard procedure, withholding tax rates vary significantly: by canton, income, marital status and religion.
- 4Since the 2021 withholding tax reform, taxed-at-source employees can request subsequent ordinary assessment (NOV) under certain conditions.
Important: Employer is liable
What Is Withholding Tax?
Withholding tax (Quellensteuer/QST) is a tax deducted directly at source - i.e., from wages. Unlike regular income tax, the taxable person does not file their own tax return. Instead, the employer deducts the tax monthly from gross wages and remits it to the cantonal tax office.
For private households employing a cleaner, nanny or carer from abroad, withholding tax is a key topic. As the employer, YOU are responsible for the correct deduction - not your household employee.
Legal basis: Art. 83-101 DBG / Art. 32-38 StHG
«Withholding tax is retained by the debtor of the taxable payment when it becomes due.»
Who Is Subject to Withholding Tax?
Not all foreign employees are subject to withholding tax. It depends on the residence permit:
Subject to withholding tax
- •B permit (residence permit) - up to CHF 120,000 gross income
- •L permit (short-term residence)
- •F permit (provisionally admitted foreigners)
- •N permit (asylum seekers with work permit)
- •Cross-border commuters (G permit) - special rules per canton
NOT subject to withholding tax
- •Swiss citizens
- •C permit (settlement permit) - regular tax return
- •B permit with gross income over CHF 120,000 (since 2021: mandatory NOV)
- •Persons with a Swiss spouse (spouse's C permit is sufficient)
Withholding Tax in the Simplified Procedure (VAV)
Most private households use the simplified accounting procedure (VAV) for their household help. Withholding tax is charged at a flat 5% of gross wages - regardless of canton, income or marital status.
This 5% is a lump sum covering all taxes: federal, cantonal and municipal. The household employee does NOT need to file their own tax return (as long as they have no other income).
Advantages of VAV
Important: wage limit
Withholding Tax Calculator
Calculate the withholding tax for your household employee.
Simplified procedure
For annual wages up to CHF 22,680, private employers can use the simplified settlement procedure. The flat deduction of 5% covers all taxes (federal, cantonal, municipal). The employee does not need to file a tax return.
Withholding Tax in the Standard Procedure
If the household employee earns more than CHF 22,680 per year or has multiple employers, the standard withholding tax procedure applies. Regular cantonal withholding tax tariffs are used.
Rates depend on several factors: the employee's canton of residence, marital status, number of children, church membership and gross income. As the employer, you must apply the correct tariff (A, B, C, D, etc.).
Tariff A: Single without children
For single, divorced or widowed persons without dependent children. The most common tariff for cleaners.
Tariff B: Married (single earner)
For married persons whose spouse is not or only marginally employed (under CHF 500/month).
Tariff C: Dual earners
For married persons whose spouse is also employed. The tariff accounts for the second income.
Tariff H: Single parents
For single persons with children. Grants a single-parent deduction.
Cantonal Differences: Withholding Tax Rates Compared
Withholding tax rates vary significantly between cantons. Here is a comparison for a single person without children (tariff A0) at a gross salary of CHF 3,000/month:
| Canton | WHT Rate (Tariff A0) | WHT Deduction/Month |
|---|---|---|
| Zürich | 9.86% | CHF 296 |
| Bern | 12.53% | CHF 376 |
| Luzern | 9.21% | CHF 276 |
| Basel-Stadt | 13.68% | CHF 410 |
| Basel-Landschaft | 11.47% | CHF 344 |
| St. Gallen | 10.34% | CHF 310 |
| Aargau | 9.72% | CHF 292 |
| Zug | 5.89% | CHF 177 |
| Genève | 13.92% | CHF 418 |
| Vaud | 12.15% | CHF 365 |
Source: Cantonal tax administrations, ESTV withholding tax tariffs 2026. Rates rounded, incl. church tax (ref.).
Note
As the employer, you bear responsibility for correct withholding tax deduction. Clino calculates the deduction automatically - you don't need to worry about a thing.
How Withholding Tax Deduction Works: Step by Step
As the employer of a foreign household employee, you are responsible for the correct process. Here is how it works:
Verify residence status
Check your employee's permit. No C permit = subject to withholding tax. Obtain a copy of the permit.
Determine tariff (or choose VAV)
Simplified procedure: flat 5%. Standard procedure: determine the correct tariff (A, B, C etc.) from the employee's cantonal tax office.
Deduct monthly from wages
Deduct withholding tax from gross wages with each payment. The deduction must be shown separately on the payslip.
Remit to tax office / compensation fund
VAV: annually via the AHV compensation fund. Standard procedure: monthly or quarterly to the cantonal tax office. Respect deadlines - late interest applies!
Issue wage certificate
At year-end, issue a wage certificate showing the withheld tax separately. In the VAV, the compensation fund issues the tax certificate automatically.
How to create a correct payslip with WHT deduction
Subsequent Ordinary Assessment (NOV)
Since the 2021 withholding tax reform, taxed-at-source employees can request a subsequent ordinary assessment (NOV) under certain conditions. This means: they file a regular tax return, and the already-paid withholding tax is credited.
For household employees with low income, the NOV can be advantageous because deductions (professional expenses, insurance premiums, child deductions) can reduce the taxable amount.
When is an NOV possible?
Deadline: March 31
2021 Withholding Tax Reform: What Changed?
On January 1, 2021, the comprehensive withholding tax reform came into effect. The key changes for household employers:
Uniform tariffs
Withholding tax tariffs were harmonized across Switzerland. The calculation method is now the same in all cantons - only the tax rates themselves still vary.
NOV right for everyone
All taxed-at-source persons (including those under CHF 120,000) can now request subsequent ordinary assessment. Previously, this was not possible in many cantons.
Quasi-residency abolished
The former concept of 'quasi-residency' was replaced by the uniform NOV right. Conditions are clearer and equal for everyone.
Corrections only via NOV
Individual corrections (e.g., for insurance premiums or child deductions) are now only possible via NOV - no longer through a simplified correction procedure.
Without a system
- •Research and calculate tariffs yourself
- •Risk: wrong tariff = pay out of your own pocket
- •Monthly effort for payroll accounting
- •Create wage certificate manually
With Clino
- •Withholding tax calculated automatically
- •Correct tariff guaranteed - no liability risk
- •Everything in one annual settlement (VAV)
- •Wage certificate and tax documents generated automatically
Automate withholding tax
Clino calculates the correct withholding tax for your household employee, creates payslips and delivers all documents for the tax office. CHF 19.90/month, all included.
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Frequently Asked Questions About Withholding Tax
Do I need to deduct withholding tax as a private household?
How much is the withholding tax in the simplified procedure?
What happens if I forget to deduct withholding tax?
Can my household employee reclaim withholding tax?
What is the difference between VAV and standard withholding tax?
Does the 5% flat rate apply to cross-border commuters?
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