How much tax do I save with pillar 3a in Switzerland?

Tax savings depend on your canton and marginal tax rate. With the maximum contribution of CHF 7,258 and a marginal rate of 33% (e.g. Zürich), you save approximately CHF 2,400 per year. Over 20 years, this adds up to CHF 48,000–53,000.

What is the maximum 3a contribution in 2026?

CHF 7,258 per year for employees with a pension fund. For self-employed without a pension fund: 20% of net income, max CHF 36,288. New from 2026: missed contributions can be made retroactively for up to 10 years.

Should I reinvest my 3a tax savings?

Yes. Investing the annual tax savings of CHF 2,000–2,500 into a savings plan builds an additional CHF 80,000–100,000 over 20 years. This money would have gone to taxes anyway.

Pillar 3a Tax Savings Calculator: How Much Do You Really Save?

Q: How much does an invested 3a earn compared to a savings account?

Contributing CHF 7,258 per year for 20 years, an invested 3a at 6% average return grows to approximately CHF 280,000. The same deposits in a savings account at 0.75% yield only about CHF 160,000. The CHF 120,000+ difference comes from compound interest.

Thierry

February 26, 2026 2 min read

arvy 3a Calculator

3a Tax Savings Calculator: How Much Do You Really Save?

Calculate your tax savings by canton and compare invested 3a vs. savings account.

Gross salary

Your annual gross income before deductions. Determines your marginal tax rate — the higher your income, the more you save with 3a. → Budget Calculator

CHF 40,000CHF 200,000

Canton

The canton determines your marginal tax rate. Zug has the lowest (~22%), Basel-Stadt and Geneva the highest (~37%). The 3a tax savings are largest in high-tax cantons. → Glossary: Pillar 3a

Investment horizon

How many years until retirement or until you withdraw your 3a balance. The longer, the stronger the compound effect. 3a balances can be withdrawn at the earliest 5 years before AHV retirement age (exceptions: home ownership, emigration, self-employment).

5 years35 years

Expected return

The expected annual return on your 3a investment. Savings account: 0.5-1.5%. Conservative investment: 4-5%. Equity-oriented (like arvy): 6-8%. Historical stock market average: ~7% after inflation. → Compound Interest Calculator

2%10%

New from 2026: Missed 3a contributions can be made retroactively for up to 10 years — and are also fully tax-deductible.

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⚠ Simplified estimate. Not financial or tax advice. Tax savings vary by canton, income, and personal situation. Marginal rates are approximate. For binding calculations: ESTV Tax Calculator. arvy is a FINMA-regulated asset manager.

How Does the 3a Tax Savings Work?

Pillar 3a is the most tax-effective instrument for individuals in Switzerland. Every franc deposited — up to a maximum of CHF 7,258 per year (2025/2026, for employees with a pension fund) — can be fully deducted from taxable income. At a marginal tax rate of 33% in Zürich, that saves you approximately CHF 2,400 per year in taxes. Over 25 years, that's more than CHF 60,000 in tax savings alone.

Invested vs. Savings Account: The Difference Is Enormous

Many people in Switzerland have a 3a account at a bank earning 0.5–1% interest. That's better than nothing — but far from the potential. An invested 3a earning an average of 6% grows over 20 years to approximately CHF 280,000. The same deposits in a savings account at 0.75%: only about CHF 160,000. The difference of over CHF 120,000 is the price of not investing.

The Turbo Effect: Reinvesting Tax Savings

Most people spend their tax savings. Those who invest them instead get a turbo effect: the CHF 2,000–2,500 annual tax savings grow over 20 years into an additional CHF 80,000–100,000. That's free money — it would have gone to the canton anyway.

New from 2026: Retroactive 3a Contributions

Since 2026, missed pillar 3a contributions can be made retroactively for up to 10 years (starting from contribution year 2025). These retroactive payments are also fully tax-deductible. This means: if you didn't max out the contribution in previous years, you can now catch up — and realise the tax savings retroactively.

→ The Complete 3a Guide for Switzerland
→ 3a Providers Compared: Who Offers What?
→ Budget Calculator: How much can you invest monthly?