Between 2010 and 2023, Swiss taxpayers paid around 20 billion CHF too much in taxes. The reason: the effects of bracket creep (also known as “cold progression”) were underestimated or not properly adjusted by federal and cantonal authorities.
🧮 What is bracket creep?
When wages rise due to inflation or standard salary adjustments, but tax brackets remain unchanged, many people are automatically pushed into higher tax categories, even though their purchasing power does not increase. The result: higher taxes for the same standard of living.
📉 Who is affected the most?
- Families and middle-income households
- Employees receiving yearly wage adjustments
- Individuals in progressive tax systems
For many households, this has meant an additional tax burden of 800 to 1,000 CHF per year, money that could have supported savings, pension contributions, or everyday expenses.
💡 What can you do now?
It is unlikely that taxpayers will receive refunds. However, there are several legal ways to optimize your personal tax situation going forward:
- 3a pillar contributions to reduce taxable income
- Deductions for education, work-related expenses & insurance
- Strategic mortgage and asset structure planning
We offer a free tax and pension analysis to help you understand how much you can save each year.
📖 Source: Blick.ch, 2025
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