Medical costs and health insurance: 2023 tax return
Can I deduct medical costs and health insurance premiums from my taxes? Comparis explains.
31.01.2024
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1. Is my health insurance tax deductible?
You can deduct health insurance premiums from your cantonal taxes. However, there’s a maximum amount. This varies from canton to canton.
In the canton of Zurich, for example, individuals may deduct a maximum of 2,600 francs. If no contributions have been made to the occupational pension fund or pillar 3a, the maximum deduction is 3,900 francs. Parents can deduct a maximum of 1,300 francs per child.
For direct federal tax, individuals can deduct a maximum of 1,800 francs. Jointly taxable spouses may deduct 3,600 francs; the maximum deduction for children is 700 francs.
Under certain circumstances, you can cancel your health insurance policy at the end of the first half of the year i.e. by 30 June. This is possible for policyholders insured under the traditional model with the minimum deductible of 300 francs (zero francs for children).
However, be aware: the notice period is three months in this case. This means your cancellation letter must be received by your current insurer by 31 March at the latest.
Comparis can help you create your cancellation letter and notify you when the new health insurance premiums are announced.
2. Deducting medical expenses from taxes in Switzerland
Under certain conditions, you can deduct medical expenses from your taxable income. You cannot deduct costs that have been paid for by your health insurance or accident insurance.
In addition: at the federal level and in almost all cantons, only health costs that exceed 5% of your net income are deductible. The definition of “net income” varies between the cantons.
The threshold is lower in the following cantons:
Glarus, St. Gallen and Valais: 2%
Geneva: 0.5%
Basel-Landschaft: no threshold
Deductible healthcare costs: example
A taxable person in the canton of Zurich has a net income of 60,000 francs per year. 5% of this net income is 3,000 francs. This person may only deduct health costs that exceed this 3,000 francs. If their medical expenses are 5,000 francs, they can therefore deduct only 2,000 francs.
3. Tax declaration: which medical and accident expenses can I deduct?
Any expenses that contribute to “maintaining and restoring physical and mental health” can be deducted in accordance with the conditions described above.
This generally includes costs for the following treatments:
Medical treatment and any therapies that are prescribed by a doctor and provided by suitably qualified persons.
Naturopathic treatment provided by an accredited naturopath. Depending on the canton, a medical prescription may be required.
Medicines prescribed by a doctor.
Hospital stays and outpatient care at home (Spitex), if prescribed by a doctor.
Nursing costs in retirement and nursing homes.
Medically necessary transportation, rescue and recovery costs.
Good to know: there are cantonal differences in how tax deductions work. In the canton of St. Gallen, for example, acupuncture treatments and other costs for alternative medicine are deductible even without a doctor’s prescription. In the canton of Zurich, on the other hand, a medical prescription is required.
4. Can I deduct dental costs from my taxable income?
If you have documented dental expenses that are not covered by any insurance, they can be deducted from your taxable income as medical expenses. In most cantons, only annual expenses that exceed 5% of net income can be deducted from taxes.
5. Can I deduct the costs of health-promoting measures?
Preventive health measures such as gym memberships, weight-loss treatments or preventive examinations are considered normal costs of living, unless prescribed by a doctor. As a rule, they are therefore not tax deductible.
Find the right supplemental insurance
Supplemental insurance usually covers part of the cost of health-promoting measures. However, the premiums vary significantly – it’s well worth comparing.
6. Why should I schedule treatment in the first half of the year?
Do you have any upcoming health treatments and are they tax-deductible? In this case, it’s worth doing some planning. If possible, arrange any appointments, therapies or dental treatment in the first half of the year.
The reason? You can then assume that all invoices will arrive in the same year. What is relevant for the deduction is the invoice date, not the date of treatment. This means: you can only benefit from a possible deduction in the year of the invoice.
7. Deducting medical expenses from taxes: which documents do I need?
For your tax return, you will need a cost statement (tax confirmation) from your health insurance provider. You will usually receive this document from your health insurance company by the end of February. This provides you with a receipt for the deduction of premium payments and healthcare costs in the relevant tax year.
It usually contains the following information:
Premiums paid in the past year
Amount spent on medical bills
Amount covered by the insurer
In addition, collect receipts for other medical expenses that are deductible but not covered by your health insurance.
Examples of additional health costs not included in the tax confirmation:
Self-paid, doctor-prescribed medication
Dental bills
Self-payment of accident costs
Costs for hospitalization(contribution to hospital costs)
Self-paid medical bills and examinations
Are self-paid medical bills included in the tax confirmation?
Depending on your health insurer’s billing model, your out-of-pocket expenses (e.g. self-paid medical bills as part of your deductible) are not included in the health insurance provider’s tax confirmation. Therefore, keep all medical bills that you pay directly yourself.
This article was first published on 19.01.2021
