Switzerland’s tax system is unique in its decentralized structure, where each of the 26 cantons operates with a high degree of fiscal autonomy. In 2025, individuals and companies face varying tax burdens depending on the canton of residence or incorporation. While individuals are generally subject to federal, cantonal, communal, and optionally church taxes, companies pay a flat federal corporate tax of 8.5% in addition to cantonal and municipal taxes that differ widely across regions. Here is a detailed breakdown of individual income and wealth taxes, as well as corporate tax rates, in each Swiss canton. Note that in most cantons, individuals pay federal, cantonal, communal, and optionally church tax, and companies pay federal (8.5%) + cantonal/communal taxes.
Swiss cantons: Individual Income & Wealth Tax
Switzerland’s cantonal tax landscape for individuals is highly diversified, reflecting each canton’s fiscal policy and autonomy. In 2025, individual taxpayers are subject to a combination of federal, cantonal, and communal income taxes, with some cantons also levying church tax. Income tax rates are progressive in most cantons, meaning higher earners face steeper tax brackets. Additionally, individuals are taxed on their global net wealth, with wealth tax rates and exemption thresholds varying significantly between cantons. Understanding these differences is essential for optimizing personal tax exposure when choosing a place of residence in Switzerland.
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Progressive in nearly all cantons, except Obwalden, which applies a flat 1.8% on cantonal level income tax
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Canton “best in class” for individuals:
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Schwyz ~22.59% total burden
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Zug, Nidwalden, Obwalden, Uri, Schwyz among the lowest spots (~22–25%)
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High-burden cantons (total tax burden including municipal):
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Geneva up to ~43%
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Bern ~41%, Basel mid-to-high 30% range, Zurich ~37%, St. Gallen ~29%, Lucerne ~30%
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Cantonal wealth taxes average around 0.3%–0.7% of net wealth, depending on the canton (e.g., Zug ~0.14–0.21%, Vaud ~0.64–0.76%)
Swiss cantons: Corporate Tax
Corporate taxation in Switzerland is shaped by a multi-tiered system combining federal, cantonal, and municipal tax components. In 2025, all Swiss companies pay a flat federal profit tax of 8.5%, while cantonal and communal tax rates vary substantially from one canton to another. These local differences can lead to effective corporate tax rates ranging from under 12% in favorable cantons like Zug and Nidwalden to over 19% in higher-tax regions such as Zurich and Bern. With recent reforms aligned with the OECD’s global minimum tax framework, Switzerland remains a competitive and transparent jurisdiction for international business operations, holding structures, and group headquarters.
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Federal: a flat 8.5% on profit after tax (equivalent to ~7.8% pre-tax)
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Cantonal+Municipal effective rates range largely from:
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~11.85% in Zug (lowest)
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~11.97% in Nidwalden, ~12.2% in Lucerne
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~20–21% in Bern (20.54%), Zurich (~19.6%), Valais (~17.1%) – these are among the higher‑end effective rates
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All cantons now meet or exceed the OECD global minimum tax requirement of 15% for large corporations (profits > CHF 750 M), reflecting recent reforms.
📊 Summary Table
| Canton | Individual Cantonal Tax | Corporate Effective Tax |
|---|---|---|
| Aargau (AG) | Progressive, ~30–35% | ~ (average Swiss) ~12–17% |
| App. Ausserrhoden (AR) | Progressive | Low–mid range (~12–15%) |
| App. Innerrhoden (AI) | Low progressive (~23–27%) | Attractively low (~12–13%) |
| Basel-Landschaft (BL) | Mid-high (~30–38%) | ~? (reduced by ~2.45pp recently) |
| Basel-Stadt (BS) | Mid-high (~30–38%) | ~13→14.5% on excess post‑2026 |
| Bern (BE) | High (~41%) | ~20.5% |
| Fribourg (FR) | Mid (~30–35%) | ~? similar regional average |
| Geneva (GE) | Very high (~43%), top bracket ~18% cantonal | ~14.7% |
| Glarus (GL) | Progressive (~30%) | Low (~12–13%) |
| Grisons (GR) | Mid (~30–35%) | ~12–15% |
| Jura (JU) | Mid (~30–35%) | ~12–15% |
| Lucerne (LU) | Mid (~30%) | ~12.2% |
| Neuchâtel (NE) | Mid (~30–35%) | ~12–15% |
| Nidwalden (NW) | Low (~25%) | ~11.97% |
| Obwalden (OW) | Cantonal flat 1.8%; overall ~24% | ~12–15% |
| St. Gallen (SG) | Mid (~29%), moderate burden | ~12–15% |
| Schaffhausen (SH) | Progressive (~30–35%) | Now progressive; profits >15 M taxed at 15% |
| Schwyz (SZ) | Low (~22.6%) | Low (~12–15%) |
| Solothurn (SO) | Mid (~30–35%) | ~12–15% |
| Thurgau (TG) | Mid (~30–35%) | ~12–15% |
| Ticino (TI) | Mid-high (~30–35%) | Cut ~3.11pp to align, likely ~13–15% |
| Uri (UR) | Low (~25%) | ~12–15% |
| Valais (VS) | Mid (~30–35%) | ~17.12% |
| Vaud (VD) | Mid (~30–35%) | ~14.7% on profits >10 M |
| Zug (ZG) | Low (~22–25%) | Lowest – 11.85% |
| Zürich (ZH) | High (~37%) | ~19.6% |
Key Takeaways for Investors & Corporates
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Zug, Nidwalden, Obwalden, Uri, Schwyz: prime for low personal & corporate taxes.
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Zurich, Bern, Geneva, Basel: have higher personal and corporate burdens; but still competitive economically.
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Reforms ensure all cantons meet OECD’s 15% minimum tax for large corporations.
Damalion supports international investors to open thier private bank account and their business bank account in Switzerland. Contact your Damalion expert now.
