Reform of individual taxation in Switzerland:

The Federal Council announced on 19 August 2026 that the reform of individual taxation will come into force on 1 January 2032, which is the latest date permitted by law. This timetable is intended to give the cantons the time they need to adapt their legislation, tax scales and tax systems.

Approved by the Swiss people on 8 March 2026 with 54.23 per cent of the vote, the reform provides that each taxpayer will be taxed individually, regardless of their marital status. For married couples, income and wealth will, in principle, be allocated individually in accordance with the applicable rules, thereby bringing an end to the current principle of joint taxation of spouses.

What will be the main effects?

The impact of the reform will depend, in particular, on the distribution of income between spouses and the family situation:

• Married couples with relatively balanced incomes: they should generally benefit from a reduction in their tax burden, as each spouse will be taxed separately on their own income.
• Couples whose income is heavily concentrated in one spouse: the effect may be less favourable and, depending on the situation, could lead to an increase in the tax burden.
• Unmarried individuals: the impact will depend in particular on their family situation as well as on the tax scales and allowances that will apply. Indeed, a slight change to these is expected.
• Families with children: in terms of direct federal tax, the reform notably provides for an increase in the child allowance, from CHF 6,800 to CHF 12,000 per child.

The actual effect of the reform will therefore need to be assessed on a case-by-case basis, taking into account income structure, family circumstances and the canton of residence.

It should be noted that although wealth tax does not appear to be the main focus of the reform, the distribution of assets and liabilities between spouses could also be significant, particularly in the case of a matrimonial regime of separate property.

A key point: the cantonal arrangements have yet to be determined

Whilst the date of entry into force has now been set, it is not yet possible to determine all the specific tax consequences for each taxpayer.

Individual taxation will need to be implemented at federal, cantonal and municipal levels. In particular, the cantons will need to amend their legislation and determine the specific arrangements for their tax scales and certain deductions. Depending on the canton, these adjustments may also require legislative procedures or a cantonal referendum.

It is therefore still too early to calculate precisely a household’s future tax burden at cantonal and municipal level. The final impact will depend, in particular, on the choices made by each canton within the framework of its fiscal autonomy.

Key points for taxpayers

At this stage, it is important to draw a clear distinction between what has now been finalised and what remains to be defined.

What has been confirmed:

• 1 January 2032: entry into force of individual taxation;
• each taxpayer will, in principle, be taxed separately, regardless of their marital status;
• the reform will affect the federal, cantonal and municipal levels;
• the cantons must adapt their legislation and tax systems;
• certain measures at federal level, notably the new child allowance, are already provided for in the reform.

What remains to be determined:

• the cantonal tax scales that will apply from 2032;
• certain cantonal tax allowances and parameters;
• the precise implementation arrangements in each canton;
• the final impact of the reform on each household’s tax burden;
• any necessary legislative amendments and cantonal referendums.

What are the practical implications as of today?

For taxpayers, no immediate changes to taxation are to be applied on the basis of the reform for the current tax years. The priority is rather to monitor cantonal developments as they are published.

For married couples, however, it may be useful to anticipate the potential impact of the reform by examining, in particular, the allocation of income between spouses, their family situation and their canton of residence. In the case of separate property or an unequal division of assets, wealth tax could also be a factor to consider. 

However, a reliable simulation of the tax burden from 2032 onwards will only be possible once the relevant cantonal parameters have been finalised. For entrepreneurs, it may be useful to analyse a reduction in salary whilst complying with current AHV regulations and to plan future dividend distributions, combined with a partial transfer of the company to their spouse.