Preliminary tax bill: Should I pay or adjust?

I couldn't help but wonder … do the biggest misunderstandings occur in relationships or when opening mail from the tax office?

'Nothing is more complicated than love!' At least, until you receive both a preliminary tax bill and a final tax bill within a few weeks. Many people then fail to realize that these bills are for different years or different taxes. The confusion can be overwhelming if you don’t understand the differences and deadlines. But it doesn't have to be that way!

We'll help you navigate the different Swiss tax bills, so you can handle them correctly. After all, unlike love, taxes don't have to cause emotional chaos.

Why you receive more than one tax bill in Switzerland

It really can be confusing to receive several tax bills in a short period of time. But this is normal and no cause for concern. It’s simply because, under the Swiss tax system, an initial estimate is made before the final calculation is carried out.

So, when it comes to tax invoices, you need to be aware of some important differences:

1. Is it a preliminary tax bill or a final tax bill? You’ll first receive a provisional bill. After you file your tax return, an assessment will be made, and only then will the final tax calculation be issued. As a result, you might, for example, receive the preliminary tax bill for 2026 at the same time as the final tax assessment for 2024. And that's after you've just filed your tax return for 2025!

2. Are these cantonal and municipal taxes, or is it the direct federal tax? In most cantons, the municipality and canton issue a joint tax bill, while the direct federal tax is collected separately. So you’ll also need to figure out which authority issued the tax bill. If you’re not yet familiar with the difference between these taxes, simply read our explanation of the Swiss tax system.

Just making these distinctions can help you feel a little more at ease when you receive mail from the tax office. But let’s take a closer look at the four tax bills that taxpayers in Zurich, for example, receive each year.

Preliminary vs. final tax bill

The preliminary tax bill is simply an estimation of your tax liability. In the Canton of Zurich, this estimate is based on your most recent tax return, your most recent tax assessment, or your expected taxable income. This tax bill is therefore merely a preliminary estimate.

You will receive your final tax bill once your tax return has been filed and processed. All provisional tax payments will then be credited against your tax liability. This may result in either a refund or an additional payment.

Depending on how much your personal circumstances and financial situation have changed, your preliminary tax bill may be a reliable estimate - or it may be completely out of date. So it’s not irrelevant, but it’s not final either! It’s almost like love at first sight: The first impression may be accurate, but it might also just be an illusion.

You will receive tax bills for these Swiss taxes

So now you know the difference between preliminary and final tax bills. But why do you receive two of them each year in some cantons? To understand this, we need to distinguish between the different types of Swiss taxes.

We’ll stick with the Canton of Zurich as an example here, but we’d be happy to advise you personally on other cantons. After all, every Swiss canton has its own tax laws!

1. Cantonal and municipal taxes

You will typically receive a preliminary tax bill for cantonal and municipal taxes at the beginning of the current tax year. In the Canton of Zurich, the bill is issued by the municipality. These taxes are generally due by September 30 of the respective tax year.

Here’s what you need to know about the preliminary tax bill from the canton and municipality:

• Credit interest: Payments made before the due date earn interest. So it’s worth paying before September 30.

• Compensatory interest: Outstanding balances after the due date, on the other hand, result in interest charges!

• Instalment payments: The provisional tax bill can also be paid in instalments. Payment options vary from canton to canton.

• Our tip: We recommend dividing the estimated tax amount by twelve and paying it monthly. This feels like a much smaller tax burden than a one-time payment!

  
  

Once your tax return for the relevant year has been reviewed, you will ultimately receive the tax assessment notice. You will then also be sent the final tax bill from the canton and municipality, which is due within 30 days.

2. The direct federal tax

In the Canton of Zurich, the preliminary tax bill for the direct federal tax is not sent before the end of the tax year. The bill is typically received in March of the following year and must also be paid within 30 days. There is only a one-time payment slip, so instalment payments are not possible.

Since the tax year is already over, you can usually calculate your direct federal tax a bit more accurately. If the estimate is no longer correct, you can request an updated preliminary tax bill. Wait for the corrected invoice instead of simply transferring just any amount!

You’ll eventually receive the final federal tax bill as well, once your tax return has been reviewed. Here, too, payment is usually due within 30 days. So it’s important to always set aside enough money!

Are you already feeling butterflies in your stomach because the next tax bill is about to arrive in the mail? It's better to schedule an initial consultation with us so that letters from the tax office no longer cause your heart to race.

Should I pay the estimated tax bill – or not?

Let’s assume you have one or more tax bills in front of you. It’s very tempting to just shove them straight into a drawer. After all, some of them are only ‘provisional’ and not final. Here’s the best way to handle them instead:

• First, you should check the year and the type of tax to correctly classify the tax bill: Is it a preliminary bill, or is it a final bill for past tax years?

• You should also determine whether the preliminary tax bill seems accurate. We’ll discuss reasons for adjustments, such as changes in your personal circumstances, in a moment.

• If it’s a preliminary tax bill from the canton and municipality, you should consider paying in instalments. It’s usually worth paying before the due date to earn credit interest and avoid compensatory interest.

• On the other hand, you should pay the preliminary tax bill for the direct federal tax within the 30-day deadline, unless you wish to request an adjustment. Then you should wait for a corrected bill.

• In any case, it’s important to set aside enough money for taxes so that you can pay both the preliminary and final tax bills by their respective deadlines!

Tip: Use a tax tracker!

Four tax bills a year – and then multiple years come all at once: It’s really no wonder you feel overwhelmed. That’s why we recommend using a tax tracker. Even a simple Excel spreadsheet will do:

1. List each tax year separately.

2. Distinguish cantonal and municipal taxes from the direct federal tax.

3. Note whether the tax bill is provisional or final.

4. Keep track of all preliminary tax amounts that are due.

5. Record any payments you’ve already made.

6. Monitor any outstanding balances.

7. That way, you’ll never lose track!

An Excel spreadsheet full of tax invoices doesn’t make your heart flutter? It does for us. That’s exactly why it pays off to work with a personal tax boutique for your taxes. We’d be happy to advise you. The spreadsheet is still important, of course, but it’s much more enjoyable when you work with us.

When you should adjust your preliminary tax bill

Ultimately, one question remains: when should you choose not to pay and request an adjustment to your preliminary tax bill? If something has changed and the assessment is inaccurate, a correction often makes sense. This way, you can avoid paying far too much or far too little.

Good reasons for an adjustment could include, for example, a significant change in your salary, a marriage or divorce, the purchase of real estate, or becoming self-employed. Anything that has a major impact on your finances is likely to affect your tax bills as well!

And when you shouldn't pay the preliminary tax bill

Furthermore, there are special cases in which it makes sense not to pay the preliminary tax bill:

• If you pay withholding tax and file a subsequent ordinary assessment: In that case, the withholding tax already paid will be credited against your actual tax liability. This means you do not have to pay in advance yourself, since your employer does it for you. You may then owe an additional payment. We can easily calculate this once we’ve prepared your tax return.

• If you plan to move to another canton or municipality before the end of the year: Your place of residence as of December 31 is used to determine your tax liability for the entire tax year in question. So if you’re planning to move, it may not be worth making payments in advance to your old municipality.

Preliminary, but not pointless!

Your next tax bill doesn’t have to weigh heavily on your heart – but you shouldn’t ignore it either. As long as you understand the difference between preliminary and final assessments, pay attention to the tax year, and distinguish between the canton and municipality, and the direct federal tax, your next letter won’t bother you at all! We’d be happy to help you make your taxes feel as easy as the beginning of a new romance. Let’s talk about it.

And just like that… mail from the tax office already reads (almost) like a love letter!