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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 800–1,000 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