Travel expenses between residence and workplace

When it comes to tax declarations, it is always important to know which deductions are allowed. One of the most relevant deductions is professional expenses. Essentially, costs incurred by a person to carry out their work activities are tax-deductible. In the following blog article, we will address the deduction for travel costs between home and workplace.

What exactly are travel costs between home and workplace?

This refers to the costs incurred while commuting between home and workplace. It is important that it concerns the regular workplace. Occasional trips to other locations are not included.

What deductions are available?

There are essentially three different deduction options:

Bicycle: If a person has a workplace very close, for example, less than two kilometers from home, they will likely not purchase a public transportation subscription. For such cases, there is a flat-rate bicycle deduction. This amounts to CHF 700 per year. It is important to mention that this deduction can also be claimed if the bicycle is used for the trip between home and the nearest bus stop or train station.

Public Transport: The "regular" and for most the most relevant option is public transport (ÖV). Those who travel to work by bus, tram, or train can claim the monthly subscription costs. However, only what is necessary can be claimed. For example, someone living in Schlieren and working at Zürich HB cannot claim the cost of a general subscription, even if the purchase can be proven.

Tip: If you have purchased an annual subscription, the SBB gives you one month for free. Make sure to enter the price for the monthly subscription x12 on your tax declaration and not the annual price you paid.

Car: The deduction for a car is 70 cents per kilometer driven. This can be best explained with a short example:

Let's assume that the distance between home and workplace is 17 kilometers. This route is driven twice a day, and this for the entire year (220 working days). The calculation is as follows: 17 km x 2 = 34 km per day x 220 days = 7,480 km in total x 0.7 (70 cents) = CHF 5,236 total travel cost deduction.

Unfortunately, the requirements to deduct car expenses are relatively strict and vary by canton. However, here are the most common ones:

• Time savings compared to public transport of more than one hour per day
• Medically necessary
• Required by employer's certificate
• The car is regularly used during work

Costs for purchasing a vehicle cannot be deducted. The same applies to vehicles provided by the employer.