Swiss Taxes by Canton 2026: Rates, Multipliers and Reforms Compared
In no other European country does the tax burden depend so heavily on where you live or where your company is based. The Confederation, 26 cantons and around 2,100 municipalities each levy their own taxes. In 2026 the effective corporate tax rate ranges from 11.66% to 20.54% depending on the cantonal capital, and the top income tax rate from 21.9% to 43.24%. This guide to Swiss taxes by canton explains how the system works, where the cantons stand and which reforms apply in 2026.
- ✛Corporate tax 2026 (capital, effective): Lucerne 11.66%, Zug 11.71%, Zurich 19.47%, Bern 20.54%. Swiss average 14.43%.
- ✛Top income: Zug lowest at 21.9%, Geneva highest at 43.24%.
- ✛Federal corporate tax is 8.5% on profit after tax, about 7.83% on profit before tax.
- ✛Residence on 31 December applies to the whole tax year.
- ✛Since 2024 a 15% minimum tax applies to groups with revenue of EUR 750m or more. SMEs are not affected.
The Swiss tax system: three levels
Switzerland levies taxes at three levels: federal, cantonal and municipal. The Confederation taxes income and profit uniformly across the country. The cantons set their own rates, and municipalities usually levy their tax as a percentage of the cantonal tax. The Swiss tax structure is based on the tax sovereignty of the cantons – the reason for the strong tax competition.
Federal tax
Federal income tax for individuals is progressive and reaches a maximum of 11.5%. Companies pay a flat 8.5% on profit after tax. Because the tax itself is deductible, this equals roughly 7.83% of pre-tax profit. There is no federal wealth tax.
Cantonal and municipal taxes
Cantons and municipalities tax the income and wealth of individuals and the profit and capital of companies. They account for the larger share of the total burden. That is why, for Swiss taxes, the canton – and within it the municipality – determines the actual tax bill.
The tax multiplier: how cantons and municipalities calculate
Most cantons first calculate a "simple tax" under the cantonal tariff. Canton and municipality then apply their own multiplier (Steuerfuss), expressed as a percentage of the simple tax. Some cantons, such as Geneva or Basel-Stadt, use a unified tariff instead of multipliers.
- 1Calculate the simple tax under the cantonal tariff
- 2Apply the cantonal multiplier
- 3Apply the municipal multiplier (plus church tax, if applicable)
- 4Add federal tax separately under the federal tariff
Example City of Zurich 2026: if the simple cantonal tax is CHF 10,000, the cantonal multiplier of 95% and the city multiplier of 119% give a cantonal and municipal tax of CHF 10,000 × 214% = CHF 21,400. Federal tax is added separately. The City of Zurich offers detailed tax calculators to reproduce such calculations.
The multiplier explains why two neighbouring municipalities in the same canton can charge noticeably different taxes. Comparing at canton level alone is therefore not enough.
Corporate taxes: profit tax by canton
According to the KPMG Swiss Tax Report 2026, the average effective corporate tax rate in Switzerland is 14.43% in 2026. Lucerne now leads the ranking, narrowly ahead of Zug. The figures apply to each cantonal capital and include federal, cantonal and municipal tax.
| Canton (capital) | Effective corporate tax 2026 | Note |
|---|---|---|
| Lucerne | 11.66% | New lowest rate |
| Zug | 11.71% | Slightly reduced |
| Nidwalden | 11.97% | Central Switzerland |
| Basel-Stadt | 13.04% / 14.53% | 14.53% on profits above CHF 50m |
| Vaud | 14.00% / 14.70% | 14.70% on profits above CHF 10m |
| Geneva | 14.70% | Raised in 2025 |
| Zurich | 19.47% | Slightly reduced |
| Bern | 20.54% | Highest rate in Switzerland |
Further instruments from the TRAF tax reform (since 2020) reduce the burden for certain companies: the patent box, an additional deduction for research and development and the participation deduction for holding companies. Cantons may cap the total relief at 70% of taxable profit.
Capital tax
Cantons also levy a capital tax on equity. Rates range from about 0.001% to around 0.5%. Several cantons credit profit tax against capital tax, so profitable companies effectively pay no capital tax. For equity-rich holdings, capital tax remains an important factor when choosing a location.
Anyone planning a company formation in Switzerland should never look at corporate tax in isolation. Dividends are subject to 35% withholding tax, which can be reclaimed fully or partly depending on the double tax treaty. Since 2025, trading in shell companies is also prohibited – see our article on the shelf company ban.
Set up a GmbH or AG in the right canton – with clear tax planning.
Company formation Switzerland →Income tax: the cantons compared
For income tax the differences are even larger than for companies. The average top rate fell slightly to 33.04% in 2026. The figures below are maximum marginal rates in the cantonal capital for single persons without church tax.
| Canton (capital) | Top rate 2026 |
|---|---|
| Zug | 21.9% |
| Zurich | 39.10% |
| Basel-Stadt | 39.75% |
| Bern | 40.85% |
| Vaud | 41.50% |
| Basel-Landschaft | 42.22% |
| Geneva | 43.24% |
Besides Zug, the cantons of Schwyz, Nidwalden, Obwalden and Appenzell Innerrhoden are particularly attractive for individuals. The largest cuts in 2026 were made by Ticino, Aargau and Zurich.
Withholding tax for foreign employees
Foreign employees without a permanent residence permit (C) generally pay withholding tax deducted directly by the employer. Since 2021, people with gross income of CHF 120,000 or more are subject to a mandatory subsequent ordinary assessment. Below that threshold, it can be requested to claim additional deductions.
Wealth tax for individuals
Unlike most countries, Switzerland taxes the worldwide net wealth of individuals – but only at cantonal and municipal level. Rates are progressive and differ widely.
- ✛Lowest maximum rates 2026: Nidwalden 0.13%, Obwalden 0.14%, Schwyz 0.17%, Uri 0.20%, Zug 0.22%
- ✛Average: around 0.43%
- ✛Highest maximum rates: Basel-Stadt 0.79%, Vaud 0.79%, Geneva 0.86%
Allowances also vary considerably. Foreign real estate and permanent establishments are exempt from Swiss wealth tax but are taken into account when determining the rate.
Lump-sum taxation by canton
Foreign nationals moving to Switzerland for the first time, or after at least ten years abroad, who do not work here can be taxed on their expenditure. Living costs then replace actual income as the tax base. The base is at least seven times the rental value of the home. For federal tax there is also an indexed minimum base of over CHF 400,000. Many cantons require considerably higher minimums.
Lump-sum taxation has been abolished in Zurich, Schaffhausen, Appenzell Ausserrhoden, Basel-Landschaft and Basel-Stadt. It remains available in all other cantons and is particularly common in Vaud, Valais, Geneva, Ticino and Graubünden.
The KPMG overview of Swiss taxes offers more detail on the legal framework of lump-sum taxation.
Choosing a residence and moving abroad
For income and wealth tax, residence on 31 December is decisive: anyone moving in December is taxed in the new canton for the whole year. Swiss citizens and C-permit holders simply deregister in the old and register in the new municipality. Tax authorities do, however, check whether the centre of life has actually moved.
- ✛Property prices and rents
- ✛Schools and family environment
- ✛Commute and professional connections
- ✛Language region and quality of life
Switzerland has no general exit tax for individuals. Unrealised gains on private shareholdings remain tax-free when moving abroad. Companies are different: if a company moves its seat abroad, hidden reserves are taxed. Lump-sum payments from pension funds and pillar 3a are subject to withholding tax on departure. Alternatives abroad are covered under residency abroad.
Current developments and reforms 2026
OECD minimum tax
Since 1 January 2024 Switzerland has levied a domestic top-up tax, and since 2025 the international top-up tax as well. Only groups with revenue of at least EUR 750 million are affected; for them the effective rate is at least 15%. 75% of the top-up tax goes to the cantons, 25% to the Confederation. SMEs continue to benefit fully from cantonal differences.
Cantonal adjustments
| Canton | Change | Effect |
|---|---|---|
| Lucerne | Corporate tax cut (11.91% → 11.66%) | New lowest rate in Switzerland |
| Basel-Stadt | Profits above CHF 50m: 13.04% → 14.53% (temporary) | Closer to the minimum tax |
| Vaud | Progressive tariff: 14.70% from CHF 10m profit | Higher burden for large companies |
| Geneva | Corporate tax raised to 14.70% in 2025 | Closer to the minimum tax |
| Zurich, Zug, Aargau, Jura, Schwyz | Slight cuts | Small relief |
Individual taxation
On 8 March 2026 voters approved individual taxation with 54.2%. Married couples will in future each file their own tax return – at federal, cantonal and municipal level. The law enters into force on 1 January 2032 at the latest. By then all cantons must adapt their tariffs.
Inheritance and gift tax
The Confederation levies no inheritance tax; the cantons regulate it themselves. Spouses are exempt in all cantons, direct descendants in almost all. Schwyz levies neither inheritance nor gift tax. For distant relatives and unrelated persons, rates – for example in Geneva or Vaud – can be substantial. A national 50% inheritance tax on estates above CHF 50 million was clearly rejected at the ballot box on 30 November 2025.
Choosing a location as an entrepreneur
Choosing a canton is more than a tax question. A canton with low corporate tax but high income tax can make recruiting harder. Conversely, Zurich offers the largest labour market and densest network despite higher taxes.
- ✛Zug: Crypto Valley, commodity trading, low taxes for companies and individuals
- ✛Lucerne: lowest corporate tax in 2026, good connections to Zurich and Zug
- ✛Zurich: financial centre, fintech, largest talent pool
- ✛Vaud and Geneva: biotech, medtech, international organisations
Beyond tax, living costs, international schools, transport links and efficient authorities matter. The banking relationship should also be planned early: our guide to the business account in Switzerland shows what banks look for in new companies.
Compliance and information exchange
Switzerland distinguishes between tax evasion (incomplete declaration, fine) and tax fraud (use of forged documents, criminal offence). A penalty-free voluntary disclosure is possible once in a lifetime; back taxes and late interest remain payable.
Through the automatic exchange of information (AEOI), cantonal tax authorities receive account data from over 100 partner states. Foreign accounts and assets must therefore be declared in full.
Practical tax optimisation tips
For individuals:
- ✛Plan a change of residence before 31 December
- ✛Use pillar 3a and pension fund buy-ins
- ✛Stagger pension lump-sum withdrawals over several years
- ✛Factor wealth tax into your investment strategy
For companies:
- ✛Compare canton and municipality before formation
- ✛Check participation deduction, patent box and R&D deduction
- ✛Plan dividend policy and withholding tax
- ✛Document transfer prices and review the structure regularly
More on international corporate structures is available on the SWICOR website, for example on tax optimisation or the comparison with the UK in our article on UK taxes.
Frequently asked questions
Which canton has the lowest taxes in 2026?
For companies, Lucerne with 11.66% effective corporate tax, just ahead of Zug at 11.71%. For top incomes, Zug at 21.9%.
Which canton has the highest taxes?
For corporate tax, Bern at 20.54%, followed by Zurich at 19.47%. For income tax, Geneva at 43.24%.
How high is federal corporate tax?
8.5% on profit after tax, about 7.83% on profit before tax – the same in all cantons.
What is the tax multiplier?
A percentage that canton and municipality apply to the simple tax. It explains differences between municipalities within the same canton.
Does the OECD minimum tax apply to SMEs?
No. The 15% minimum tax only affects groups with annual revenue of at least EUR 750 million.
Does Switzerland have an exit tax?
Not for individuals. For companies moving their seat abroad, hidden reserves are taxed.
Looking for the right canton for your company?
We compare cantons and municipalities for your profile, set up your GmbH or AG remotely and handle accounting and tax – OECD-compliant and at fixed prices.
This article is a general analysis and does not replace individual tax or legal advice. Regulations change; the information reflects the status at the date of publication.