Tax competition is an incentive for cantons and municipalities to keep the costs for their services as low as possible. The reason: If taxes get too high in one municipality, companies not bound to that location tend to move away. Private individuals may also consider moving a few kilometers down the road to save on taxes. However, this kind of strategy does not always pay off. Often, you would be faced with higher housing costs that cancel out the tax benefits right away.
The most attractive cantons in Switzerland from a tax perspective are Zug and Schwyz, and at a municipal level, Wollerau (SZ) is a tax haven. The canton of Neuchâtel has particularly high taxes, and on a municipal level this is true of Les Verrierès (NE). Generally, taxes in western Swiss cantons are higher than in most central and eastern Swiss cantons.
General statements are not very reliable
Tax comparisons are often based on taxable income, ignoring different possible deductible items, which vary from canton to canton, such as:
- working expenses,
- child deductions,
- deductions for married persons.
Different progression models make tax comparisons even more difficult. Capital taxation can also differ from canton to canton.
The new UBS tax calculator takes into account various deductions and calculates your tax situation in your current tax domicile and other locations in Switzerland. You can use the calculator to simulate a change of residence or income and calculate whether moving is worth it from a tax perspective.