Pillar 3a calculate tax savings: formula and examples

1. What determines the amount of the Pillar 3a tax savings?

How much a contribution to Pillar 3a saves in tax and whether the annual savings lie closer to CHF 1'000 or CHF 2'500 is determined at its core by two figures:

Amount of the contribution: Employees pay in up to the maximum contribution of CHF 7'258, self-employed without a pension fund up to 20 percent of their income and at most CHF 36'288. The higher the contribution, the larger the deduction.

Personal marginal tax rate: It is based on income and canton of residence and determines how strongly the deduction acts. At high income and in high-tax cantons it turns out higher, so the same contribution saves more.

Both figures together give the savings: those who max out the maximum contribution and tax a high income in a high-tax canton benefit most. Beyond the annual deduction, Pillar 3a brings further tax advantages: no wealth tax on the balance and a reduced rate at withdrawal.

2. How do I calculate my tax savings concretely?

The tax savings are calculated from two values:

Tax savings = contribution × marginal tax rate

The marginal tax rate is the tax rate on the last franc earned and rises with income in Switzerland's progressive tax system. A contribution to Pillar 3a lowers taxable income directly by the amount paid in and is deductible under Art. 82 BVG/LPP within the legally permitted scope.

Sample calculation: A 33-year-old marketing manager from Uster has a net income of CHF 120'000 and pays the maximum contribution of CHF 7'258 into Pillar 3a. Her taxable income thereby falls to CHF 112'742. As a single, non-denominational person in the canton of Zurich, she saves around CHF 2'032 in tax per year.

Partial amounts also save tax proportionally:

How high the contribution amount is remains up to you. Your last tax bill gives a reference point for the personal marginal tax rate; the exact franc amount is calculated by the tax calculator by canton of residence and family status.

3. How much tax do I save in my canton of residence?

Income and canton of residence determine the level of annual savings: income acts via the marginal tax rate, canton of residence via the cantonal tariffs. High-tax cantons such as Geneva, Basel-City or Bern have higher marginal tax rates than low-tax cantons such as Zug or Schwyz and thus significantly higher savings per contribution.

For CHF 100'000 income and a full contribution of CHF 7'258, the following values arise:

Between Geneva and Zug, a difference of around CHF 940 per year arises, due solely to canton of residence. Extrapolated over three decades, that results in over CHF 28'000 with the same contribution. Within the same canton, the marginal tax rate additionally differs from municipality to municipality.

Anyone planning a move to a low-tax canton only benefits from the higher savings as long as their residence at year-end is still in the high-tax canton.

4. How much tax do I save at what income?

With rising income, the marginal tax rate grows and with it the savings per franc paid in. The following values show the full contribution of CHF 7'258 in the canton of Zurich (single):

At an income of CHF 150'000, the same contribution saves more than twice as much as at CHF 60'000. Especially at higher income, fully using the maximum contribution is therefore particularly worthwhile.

Self-employed without a pension fund calculate differently: they deduct up to 20 percent of their income instead of the fixed amount and thereby save a multiple. With fluctuating income or a voluntary pension fund, the calculation for self-employed changes once more.

This article was first published on 04/05/2026