Deductions are a central element of the income tax system in Canton Basel-Landschaft. Starting from gross income, taxpayers can claim a range of deductions that reduce the income subject to federal, cantonal and communal income tax.

This page provides an overview of the main deduction categories in Basel-Landschaft and how they interact with federal rules. Exact deduction amounts, lump-sums and caps depend on the tax year and the cantonal legislation in force.

Principles of Deductions in Basel-Landschaft

Basel-Landschaft broadly follows the Swiss standard approach to deductions. In practice, the system recognises:

• Employment-related and professional expenses,
• Mandatory social security and occupational pension contributions,
• Tax-privileged private pension savings (Pillar 3a),
• Insurance premium and interest-related deductions within set limits,
• Family-related deductions and social allowances,
• Property-related deductions for homeowners and landlords,
• Extraordinary, unavoidable expenses (e.g. high medical costs).

While many categories mirror federal rules, Basel-Landschaft uses its own lump-sums, thresholds and special deductions.

Employment-Related Deductions

Employees in Basel-Landschaft can deduct expenses incurred in earning employment income. These typically include:

• Professional expenses – generally either a lump-sum based on a percentage of salary, or documented actual costs if higher and accepted by the tax authorities.
• Commuting expenses – travel between home and the regular workplace, usually based on public transport costs; deductions for private car use are subject to restrictive conditions and caps.
• Other job-related costs – such as mandatory professional memberships, specific tools and work-related equipment, where recognised by tax law.

As in other cantons, Basel-Landschaft applies detailed administrative practice on when actual costs may be claimed instead of the lump-sum.

Social Security and Occupational Pension Contributions

Contributions to mandatory social security and occupational pension schemes are generally fully deductible. This includes:

• AHV/IV/EO contributions,
• ALV (unemployment insurance),
• Mandatory occupational pension contributions (2nd pillar),
• Recognised voluntary buy-ins to the 2nd pillar, within statutory limits.

These amounts are usually deducted at source and shown on the Swiss salary certificate, which is the primary reference for the tax return.

Private Pension Savings (Pillar 3a)

Contributions to tax-privileged private pension schemes (Pillar 3a) are deductible up to the federal annual maximum. Basel-Landschaft follows the federal framework without significant cantonal deviations.

• Taxpayers with 2nd pillar coverage have a standard annual limit,
• Self-employed taxpayers without 2nd pillar coverage benefit from a higher limit.

Insurance Premiums and Interest on Savings

Basel-Landschaft grants deductions for certain insurance premiums and, where applicable, interest on savings and similar income, within federal and cantonal rules. Typical items are:

• Qualifying health and life insurance premiums,
• Combined insurance/interest deductions, subject to caps that depend on marital status and family situation.

The exact limits are set out in the cantonal tax law and may change over time.

Family-Related Deductions and Allowances

Taxpayers with dependants benefit from a range of family-related deductions, such as:

• Child deductions for each dependent child,
• Deductions for dependants in need of financial support,
• Special deductions or social allowances for single parents.

Basel-Landschaft also applies income splitting (Vollsplitting) for jointly taxed couples and certain single-parent households when determining the applicable tax rate, which interacts with the deduction system.

Second-Earner Deduction

Where both spouses or registered partners are gainfully employed, Basel-Landschaft grants a specific second-earner deduction. For cantonal tax purposes, the taxable combined income is reduced by the lower income up to a cantonal maximum. For the federal tax, a separate second-earner deduction applies based on a percentage of the lower income, subject to federal minimum and maximum amounts.

This deduction reduces the tax burden on dual-income households and should be carefully reflected when completing the tax return.

Childcare Costs

Under certain conditions, childcare costs can be deducted, in particular when they are necessary to allow:

• Gainful employment by one or both parents, or
• Education or training of the parents.

Typically:

• Expenses must be supported by invoices or contracts,
• Only recognised forms of childcare (e.g. nurseries, daycare, after-school care) qualify,
• Cantonal maximum amounts per child and per year apply.

Education and Training Costs

Basel-Landschaft generally allows deductions for continuing education and training closely linked to the taxpayer’s current profession or professional development. Examples include:

• Professional development and continuing education courses,
• Postgraduate programmes related to the existing occupation,
• Specialised seminars that enhance professional skills.

Initial education leading to a first profession is usually not deductible, in line with federal practice.

Property-Related Deductions

Taxpayers who own real estate in Basel-Landschaft must declare rental income or imputed rental value, but in return may claim property-related deductions, including:

• Mortgage interest on loans secured by the property,
• Maintenance and repair costs (either actual costs or a lump-sum, based on cantonal rules),
• Recognised renovation expenses that preserve, but do not enhance, property value.

Value-enhancing investments are generally not immediately deductible and are treated as capital improvements.

Extraordinary Expenses and Medical Costs

Certain extraordinary expenses may be deducted if they are unavoidable and exceed a defined proportion of income. Typical examples are:

• High medical and dental costs not reimbursed by insurance,
• Disability-related expenses and necessary assistance,
• Support payments for persons in financial need that go beyond normal living expenses.

Whether an expense qualifies as extraordinary depends on cantonal thresholds and practice; detailed documentation is crucial.

Cross-Border Situations and Allocation Rules

Taxpayers with income or assets outside Basel-Landschaft or abroad may be affected by:

• Double Taxation Agreements (DTAs),
• Unilateral relief provisions,
• Inter-cantonal allocation and exemption-with-progression rules.

These mechanisms are not “deductions” in the narrow sense, but they can reduce the share of income or tax attributable to Basel-Landschaft.

Interaction Between Federal and Cantonal Deductions

Many expenses are relevant for both federal and cantonal tax, but:

• Federal and cantonal maximum amounts can differ,
• Some deductions exist only at one level,
• The same expense may be treated differently in the federal and cantonal calculations.

When completing the tax return, it is important to apply the correct rules separately in the federal and Basel-Landschaft sections.

Documentation and Evidence

The ability to claim deductions in Basel-Landschaft depends largely on proper documentation. Taxpayers should keep:

• Salary certificates and pension contribution statements,
• Tickets and invoices for commuting and work-related expenses,
• Contracts and invoices for childcare, education and training,
• Insurance premium statements,
• Bank and mortgage statements,
• Receipts for significant medical or extraordinary expenses.

Practical Considerations

The overall effect of deductions in Basel-Landschaft depends on:

• The type and level of income,
• The taxpayer’s family situation,
• Housing status and property ownership,
• The interaction between federal rules and cantonal practice.

To understand your specific tax position, this Deductions section should be read together with the pages on Rates, Filing Requirements, Special Rules and Examples in the Basel-Landschaft income tax guide.