The tax deduction pays for the nanny’s social insurance: in 20 of 26 canton capitals the family saves more than declaring her costs
Many families pay their nanny cash because it looks cheaper. Using the ESTV tax calculator, Clino worked out for all 26 canton capitals what the childcare deduction brings for a declared nanny, and what declaring her costs. In 20 of 26 capitals the family comes out ahead with the legal nanny, and in all of them at a higher income. With one important condition.
Summary
Parents can deduct the cost of care for their children under 14 from their taxes: up to CHF 25,800 per child for federal tax, and between CHF 8,000 (Schwyz) and CHF 27,300 (Grisons) in the cantons. That includes a nanny. But the deduction is only for documented costs, and a nanny paid cash without being declared is hard to document.
Clino calculated a family with two children (4 and 7) and a nanny on 25 hours a week at CHF 30. Declaring her costs the family about CHF 4,000 a year in employer contributions, CHF 3,926 in Zurich. Deducting her net wage saves CHF 6,291 in tax in Zurich. On balance the declared nanny is cheaper in 20 of 26 canton capitals than one paid cash, for the same gross wage. At CHF 250,000 income it holds in all 26.
The ranking: Neuchâtel first, Zug last
Family with CHF 150,000 income, nanny on CHF 39,000 gross a year. Positive means the tax saving is bigger than the employer contributions. In Neuchâtel CHF 4,847 a year is left, in Solothurn CHF 4,611, in Basel CHF 4,277, in Bern CHF 3,335, in Zurich CHF 2,365.
| # | Advantage/year | |
|---|---|---|
| 1 | Neuchâtel (Neuchâtel)Tax saved CHF 9,211 · employer contributions CHF 4,364 | +CHF 4,847 |
| 2 | Solothurn (Solothurn)Tax saved CHF 8,584 · employer contributions CHF 3,973 | +CHF 4,611 |
| 3 | Basel-City (Basel)Tax saved CHF 8,447 · employer contributions CHF 4,170 | +CHF 4,277 |
| 4 | Geneva (Genève)Tax saved CHF 8,190 · employer contributions CHF 4,365 | +CHF 3,825 |
| 5 | Appenzell Outer Rhodes (Herisau)Tax saved CHF 7,806 · employer contributions CHF 4,151 | +CHF 3,655 |
| 6 | St. Gallen (St. Gallen)Tax saved CHF 7,869 · employer contributions CHF 4,229 | +CHF 3,640 |
| 7 | Ticino (Bellinzona)Tax saved CHF 7,558 · employer contributions CHF 4,123 | +CHF 3,435 |
| 8 | Bern (Bern)Tax saved CHF 7,447 · employer contributions CHF 4,112 | +CHF 3,335 |
| 9 | Glarus (Glarus)Tax saved CHF 6,959 · employer contributions CHF 3,990 | +CHF 2,969 |
| 10 | Grisons (Chur)Tax saved CHF 6,878 · employer contributions CHF 4,112 | +CHF 2,766 |
| 11 | Zurich (Zürich)Tax saved CHF 6,291 · employer contributions CHF 3,926 | +CHF 2,365 |
| 12 | Aargau (Aarau)Tax saved CHF 6,368 · employer contributions CHF 4,010 | +CHF 2,359 |
| 13 | Vaud (Lausanne)Tax saved CHF 6,544 · employer contributions CHF 4,548 | +CHF 1,996 |
| 14 | Uri (Altdorf)Tax saved CHF 5,925 · employer contributions CHF 4,107 | +CHF 1,818 |
| 15 | Basel-Country (Liestal)Tax saved CHF 5,820 · employer contributions CHF 4,005 | +CHF 1,815 |
| 16 | Fribourg (Fribourg)Tax saved CHF 6,157 · employer contributions CHF 4,443 | +CHF 1,714 |
| 17 | Appenzell Inner Rhodes (Appenzell)Tax saved CHF 5,527 · employer contributions CHF 4,056 | +CHF 1,471 |
| 18 | Lucerne (Luzern)Tax saved CHF 5,119 · employer contributions CHF 3,906 | +CHF 1,213 |
| 19 | Jura (Delémont)Tax saved CHF 5,478 · employer contributions CHF 4,535 | +CHF 943 |
| 20 | Thurgau (Frauenfeld)Tax saved CHF 4,585 · employer contributions CHF 3,990 | +CHF 595 |
| 21 | Schaffhausen (Schaffhausen)Tax saved CHF 3,684 · employer contributions CHF 3,951 | −CHF 267 |
| 22 | Obwalden (Sarnen)Tax saved CHF 3,594 · employer contributions CHF 4,006 | −CHF 412 |
| 23 | Nidwalden (Stans)Tax saved CHF 3,504 · employer contributions CHF 4,029 | −CHF 525 |
| 24 | Valais (Sion)Tax saved CHF 3,214 · employer contributions CHF 4,599 | −CHF 1,385 |
| 25 | Schwyz (Schwyz)Tax saved CHF 2,526 · employer contributions CHF 4,034 | −CHF 1,508 |
| 26 | Zug (Zug)Tax saved CHF 1,493 · employer contributions CHF 4,012 | −CHF 2,519 |
Tax saved through the childcare deduction (the nanny’s net wage, CHF 30 an hour, 25 hours a week) minus employer contributions. Married, two children (4 and 7), canton capital, no church tax. Negative: the declared nanny costs more. Source: ESTV tax calculator, Clino calculation.
The map: where declaring pays off
Declaring the nanny pays off most where income is taxed heavily and the canton allows high deductions. In low-tax central Switzerland the deduction brings less.
Red: the declared nanny costs more. The darker green to blue, the bigger the advantage. Canton capitals. Source: ESTV tax calculator, Clino calculation.
At a higher income: in all 26 capitals
At CHF 250,000 household income, tax progression is steeper and every franc deducted saves more. The declared nanny is then cheaper everywhere: by CHF 9,629 a year in Neuchâtel, CHF 7,526 in Zurich, and still CHF 1,253 in Zug.
| # | Advantage/year | |
|---|---|---|
| 1 | Neuchâtel (Neuchâtel)Tax saved CHF 13,993 · employer contributions CHF 4,364 | +CHF 9,629 |
| 2 | Ticino (Bellinzona)Tax saved CHF 13,246 · employer contributions CHF 4,123 | +CHF 9,123 |
| 3 | Geneva (Genève)Tax saved CHF 13,134 · employer contributions CHF 4,365 | +CHF 8,769 |
| 4 | Bern (Bern)Tax saved CHF 12,722 · employer contributions CHF 4,112 | +CHF 8,610 |
| 5 | Solothurn (Solothurn)Tax saved CHF 12,496 · employer contributions CHF 3,973 | +CHF 8,523 |
| 6 | St. Gallen (St. Gallen)Tax saved CHF 12,404 · employer contributions CHF 4,229 | +CHF 8,175 |
| 7 | Appenzell Outer Rhodes (Herisau)Tax saved CHF 11,946 · employer contributions CHF 4,151 | +CHF 7,795 |
| 8 | Basel-City (Basel)Tax saved CHF 11,920 · employer contributions CHF 4,170 | +CHF 7,750 |
| 9 | Zurich (Zürich)Tax saved CHF 11,452 · employer contributions CHF 3,926 | +CHF 7,526 |
| 10 | Aargau (Aarau)Tax saved CHF 11,179 · employer contributions CHF 4,010 | +CHF 7,170 |
| 11 | Grisons (Chur)Tax saved CHF 11,250 · employer contributions CHF 4,112 | +CHF 7,138 |
| 12 | Glarus (Glarus)Tax saved CHF 11,022 · employer contributions CHF 3,990 | +CHF 7,032 |
| 13 | Vaud (Lausanne)Tax saved CHF 11,347 · employer contributions CHF 4,548 | +CHF 6,799 |
| 14 | Basel-Country (Liestal)Tax saved CHF 10,073 · employer contributions CHF 4,005 | +CHF 6,068 |
| 15 | Lucerne (Luzern)Tax saved CHF 9,724 · employer contributions CHF 3,906 | +CHF 5,818 |
| 16 | Fribourg (Fribourg)Tax saved CHF 10,248 · employer contributions CHF 4,443 | +CHF 5,805 |
| 17 | Appenzell Inner Rhodes (Appenzell)Tax saved CHF 9,329 · employer contributions CHF 4,056 | +CHF 5,273 |
| 18 | Uri (Altdorf)Tax saved CHF 9,377 · employer contributions CHF 4,107 | +CHF 5,270 |
| 19 | Jura (Delémont)Tax saved CHF 9,291 · employer contributions CHF 4,535 | +CHF 4,756 |
| 20 | Thurgau (Frauenfeld)Tax saved CHF 8,290 · employer contributions CHF 3,990 | +CHF 4,300 |
| 21 | Schaffhausen (Schaffhausen)Tax saved CHF 7,775 · employer contributions CHF 3,951 | +CHF 3,824 |
| 22 | Valais (Sion)Tax saved CHF 8,236 · employer contributions CHF 4,599 | +CHF 3,637 |
| 23 | Obwalden (Sarnen)Tax saved CHF 7,046 · employer contributions CHF 4,006 | +CHF 3,040 |
| 24 | Nidwalden (Stans)Tax saved CHF 7,064 · employer contributions CHF 4,029 | +CHF 3,035 |
| 25 | Schwyz (Schwyz)Tax saved CHF 6,264 · employer contributions CHF 4,034 | +CHF 2,230 |
| 26 | Zug (Zug)Tax saved CHF 5,265 · employer contributions CHF 4,012 | +CHF 1,253 |
Tax saved through the childcare deduction (the nanny’s net wage, CHF 30 an hour, 25 hours a week) minus employer contributions. Married, two children (4 and 7), canton capital, no church tax. Negative: the declared nanny costs more. Source: ESTV tax calculator, Clino calculation.
Where declaring costs more than it saves
At CHF 150,000 income the declared nanny costs more in Zug (CHF 2,519 more), Schwyz (1,508), Valais (1,385), Nidwalden, Obwalden and Schaffhausen. Two reasons. First, the deductions there are low: CHF 8,000 per child in Schwyz, 8,400 in Nidwalden, 9,400 in Schaffhausen, against 25,300 in Zurich. Second, Zug and Valais have a deduction for parents who look after their own children, which the family keeps even with a cash-paid nanny. In Zug that is CHF 12,200 per child.
The condition: the nanny must really look after children
Only childcare is deductible, not housework. Cantons apply this differently: for a nanny or au pair, Bern uses a flat half of the net wage; for a household help who also minds the children, Schwyz uses a quarter. If the tax office counts only half, the declared nanny at CHF 150,000 income is cheaper in only 9 capitals, and at a quarter in 0. An employment contract that clearly describes the childcare is therefore worth real money.
| Household income | Base case (net wage deductible) | Gross wage and employer contributions deductible | Nanny keeps the same net pay | Tax office counts 50 % of the net wage | Tax office counts 25 % of the net wage |
|---|---|---|---|---|---|
| CHF 150,000 | 20/26 | 20/26 | 4/26 | 9/26 | 0/26 |
| CHF 250,000 | 26/26 | 26/26 | 21/26 | 25/26 | 0/26 |
Nanny at CHF 30 an hour, 25 hours a week, married, two children. 50 %: Bern’s flat rate for nannies and au pairs. 25 %: Schwyz’s flat rate for a household help who also minds children.
And the nanny?
The comparison assumes the family pays the same gross wage either way. The declared nanny then gets about CHF 3,681 less net a year, but she is insured against accidents, covered if she loses her job, and pays into AHV and a pension fund. If the family wants to guarantee her the same net pay as in cash, declaring her pays off at CHF 150,000 income in only 4 capitals, and at CHF 250,000 in 21.
What the tax office wants to see
No canton expressly bans deducting childcare paid in cash, but all of them require proof. Zurich requires a copy of the salary statement when the carer is an employee. Bern requires the carer to be actually paid. Geneva accepts costs for a nanny or au pair, expressly excluding housework. On top of that, tax authorities must pass on signs of undeclared work, and unpaid social-insurance contributions can be claimed five years back, with late-payment interest.
Quellen
- ESTV, tax calculator (2026)
- ESTV, canton sheets on the childcare deduction (2026)
- Zurich cantonal tax office, directive ZStB 34.1 (2026)
- Bern tax administration, third-party childcare costs (2025)
- Clino, wage calculator (employer contributions) (2026)
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About Clino
Clino is a Swiss SaaS platform enabling households to legally employ domestic workers: payroll, contract and AHV registration; Clino guides the household, insurance stays with the household. CHF 19.90/month. All 26 cantons. Founded 2026 in Zurich. clino.ch
