Childcare costs: deduction up to CHF 25,000 in Geneva (and CHF 10,100 for federal tax)

Childcare costs are one of the most important tax deductions for Geneva families, yet one of the most underused. Since the adoption of the new version of Article 35 LIPP, the deduction ceiling for cantonal and communal tax (ICC) has been significantly raised from CHF 4,000 to CHF 25,000 per child per year. This represents an increase of over 500% in the deductible ceiling, offering significant tax relief to families using childcare solutions.

The conditions for benefiting from this deduction are as follows: the child must be under 14 years of age and live in the same household as the taxpayer providing for their maintenance. Childcare costs must be documented (invoices, contracts) and have a direct causal link with the taxpayer's gainful activity, training or incapacity to work. This covers: nursery, daycare, home nanny, after-school care, and now holiday camps under certain conditions.

In March 2026, the Federal Court issued an important ruling (TF 9C_156/2025) on the deductibility of holiday camps. The Federal Court ruled that holiday camp costs for children can be considered deductible childcare costs when both parents work and the camp primarily meets a childcare need. The taxpayer must be able to demonstrate this need. This case law applies to all decisions that have not become final, and you can file an objection if you received your tax bill less than 30 days ago.

For federal direct tax (FDT), the situation is different. The federal commission has refused to increase the corresponding deduction. The ceiling remains at CHF 10,100 per child for the FDT, in accordance with Article 33 LIFD. In concrete terms, a Geneva family with two children in daycare at CHF 22,000 per child per year can deduct CHF 25,000 per child on their cantonal return (ICC), but only CHF 10,100 per child on their federal return (FDT). These two returns must be handled separately.

The gap between the ICC and FDT ceilings can reach CHF 29,800 in additional deductions for a family with two children (CHF 25,000 - CHF 10,100 = CHF 14,900 x 2 children). At the Geneva marginal tax rate, this represents a cantonal tax saving of around CHF 3,000 to CHF 5,000 per year. This is a major tax opportunity that many Geneva taxpayers are still unaware of.

A common trap is to report the CHF 25,000 amount on the federal return, believing that the new Geneva ceiling also applies to the FDT. This is not the case. The federal return must respect the CHF 10,100 ceiling, while the cantonal return can go up to CHF 25,000. It is recommended to keep separate records of childcare costs per child and per period, to facilitate the completion of both returns and to justify the amounts in the event of an audit.

At MVO Fiducia, we help Geneva families optimise their childcare cost deductions. We verify each child's eligibility, calculate optimal amounts for ICC and FDT separately, and assist you in the event of a tax audit. Since the March 2026 Federal Court ruling, we also include holiday camps in our analysis. Contact us for an initial no-obligation meeting.