The Swiss Tax System
Switzerland has a unique
federalist tax system with three levels of taxation: federal (Confederation),
cantonal, and municipal. Each of the 26 cantons has its own tax law, and approximately 2,120
municipalities can set their own tax multipliers.
Income Tax
(Impôt sur le revenu)
All cantons levy a comprehensive
income tax covering employment income, self-employment, pensions, investment income, and property
income. For married couples, the Swiss system uses global family taxation — the
incomes of both spouses living in the same household are combined. Income tax rates are
progressive in most cantons, meaning higher incomes face higher tax rates, though
the exact brackets and progressivity vary significantly between cantons.
Wealth Tax
(Impôt sur la fortune)
Switzerland is one of the few
countries with a wealth tax on individuals. All cantons and municipalities tax net
wealth (total assets minus debts) including property, securities, bank accounts,
vehicles, and business assets. Personal household items are exempt. Wealth tax is assessed annually
on December 31st. Tax-free thresholds vary widely between cantons (CHF 51,000 to CHF 402,000 for
married couples).
Deductions
Taxpayers can deduct
professional expenses, social insurance contributions (AHV/IV/EO/ALV), pension contributions (2nd
and 3rd pillar), debt interest, and insurance premiums. Social deductions for married couples,
single parents, children, and dependents also apply but vary significantly between
cantons.
Data Sources
- Tax Multipliers:
Official 2025
data sourced from
the Federal Tax Administration (ESTV).
- Base Tax Rates:
Derived from the Official Tax
Act (§ 45 StG) and current cantonal tables.
- Geographic Data:
Municipal boundaries provided
by swisstopo (swissBOUNDARIES3D).
Calculation Formula
The total tax bill is calculated using
the following formula:
Total Tax = Base Tax × (Cantonal Multiplier % + Municipal Multiplier %)
Example: If the Base Tax is CHF 100, the Cantonal Multiplier is 100%,
and the Municipal Multiplier is
119%, the total tax is CHF 219.