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What will the introduction of individual taxation mean? Learn more about how it will affect all taxpayers.
The marriage penalty has been the subject of debate and political initiatives for decades. Until now, married couples in Switzerland were taxed jointly – which meant that married couples found themselves paying more taxes than unmarried couples in a similar income situation. This difference in tax treatment has long been at the center of political and social debates and has led to a fundamental shift toward individual taxation.
On 8 March 2026, the Swiss people approved the Federal Act on Individual Taxation, with 54.26% voting in favor of the proposal. The legislation will now be implemented at all three levels of government and the “marriage penalty” will be abolished.
Individual taxation will adapt the Swiss tax system to today’s social and economic conditions.
Until now, the “marriage penalty” in Switzerland meant that if two individuals with high incomes got married, they often ended up paying more taxes than if they had lived together as an unmarried couple in exactly the same income situation.
This is because their incomes were combined for tax purposes, making them subject to a higher tax rate under the progressive tax system. Consequently, with the same total income, a married couple with two evenly distributed incomes sometimes ended up paying much higher direct federal taxes than an unmarried couple.
In short, the “marriage penalty” refers to the unequal treatment of married couples compared to unmarried couples, especially when both partners earn similar amounts.
The adoption of individual taxation regardless of marital status is a landmark decision in Swiss tax law. Tax will no longer be calculated according to a couple’s combined income, but will be based on each individual’s income. Married and unmarried couples will be treated equally for tax purposes. Each person will have to file their own tax return.
As far as real estate is concerned, the ownership ratio as recorded in the land registry will be taken into account for tax purposes.
Imputed rental value – a special case: Renovation and refurbishment costs for owner-occupied residential property may continue to be deducted from taxable income until the abolition of the imputed rental value takes effect on 1 January 2029. To be eligible for the deduction, the relevant person must be listed as the property owner in the land register. This deduction will remain possible for non-owner-occupied properties even after the imputed rental value has been abolished.
Tax deductions can still be claimed for retirement planning contributions such as payments into a pension fund or a 3a account. However, this will not necessarily remain worthwhile in every case in the future, especially for married couples with different income levels.
A capital gains tax is levied on withdrawals of retirement savings from the second and third pillars. Under the new system, a married couple’s withdrawals within the same tax year will no longer be combined. It will still make sense to stagger withdrawals per person to mitigate the progressive tax rate, but coordination between married couples will no longer be essential. As a result, careful planning will be increasingly important when determining who should receive pension benefits or lump-sum payments from their pension fund and how much. Otherwise, this could significantly alter the amount of tax due.
The federal child deduction will be increased from the current CHF 6,800 (as of 2026) to CHF 12,000 per child. This total amount applies to both parents together. When allocating child-related deductions, the primary consideration will be parental custody. If parents have joint custody and no child support payments are made, the deductions will be split equally between the parents. For unmarried parents who receive child support, the deductions will be allocated to the recipient of the payments. If custody is granted exclusively to one parent, the deductions will be credited in full to that parent.
Married couples with two similar, evenly distributed middle-to-high incomes will benefit considerably: following the abolition of the marriage penalty, each spouse will be subject to much less tax due to the lower tax progression per person.
For example, a married couple with an individual income of CHF 100,000 per person and two children will save about CHF 3,700 in direct federal taxes per year.
Situation | Taxable income | Total tax | Result |
|---|---|---|---|
Before the reform (joint taxation) | CHF 200,000 in total | Higher | Both incomes are added together, with a high tax progression |
Following the introduction of individual taxation | CHF 100,000 | Lower | Each income will be taxed separately, so the tax progression will be lower |
Conclusion: Individual taxation will generally result in a lower tax burden for dual-income couples, as each income will be taxed separately. However, the actual amount of taxes owed depends on the canton and municipality, the deductions claimed and the individual’s personal circumstances. Many aspects currently remain unclear, particularly the specific impact on cantonal and municipal taxes, which typically account for the largest share of the annual tax burden.
Single-income couples with one partner who earns a high income and the other who earns little or nothing can expect to face a higher tax burden. Instead of being taxed jointly under the preferential married couple’s tax bracket, the high income will now be taxed separately on an individual basis. The amount of tax due could end up being a lot higher. The same applies to married couples with spouses who earn very different incomes, who so far benefited significantly from the married-couple tax bracket and spouse-related deductions.
The federal tax burden will be higher in the future for households with a single income, for instance if one person earns CHF 140,000.
Situation | Taxable income | Total tax | Result |
|---|---|---|---|
Before the reform (joint taxation) | CHF 140,000 in total | Moderate | The spousal tax rate is more advantageous for single-income households |
Following the introduction of individual taxation | CHF 140,000 | Similar or higher | The entire income is declared by a single spouse, so there is no tax relief. |
Conclusion: For single-income households, individual taxation may result in a higher tax burden, since married couples previously benefited from a more favorable tax rate. The actual tax burden depends on the canton, municipality and applicable deductions – and therefore on each couple’s specific circumstances. At present, many issues remain unresolved, particularly the impact of individual taxation on cantonal and municipal taxes. These taxes typically account for the largest portion of the annual tax bill.
The law will not take effect immediately. Individual taxation is due to be implemented at federal level by 1 January 2032 at the latest. The cantons will have until then to amend their tax laws, review their tax rates and deductions, and decide on any additional relief measures.
Despite the provisions of the Direct Taxation Harmonisation Act, cantonal legislative procedures are still required, which means that further votes are to be expected at cantonal level. Since cantonal and municipal taxes often account for a larger share of the total tax burden than direct federal taxes, the effective tax burden will greatly depend on how each canton decides to implement the tax system.
Given the various unresolved issues regarding implementation in the cantons and the long transition period until 2032, there is no immediate need for action. In particular, major transfers of assets between spouses should not be made hastily or without sound advice. It is advisable to wait for the specific implementation details to be announced in your particular canton of residence, as a reliable assessment of the individual implications will not be possible until then.
Once the reform takes effect, all natural persons will be taxed on an individual basis, regardless of their marital status. Every taxpayer will have to file their own tax return.
Direct federal tax will be based on parental custody for the purpose of allocating the income and assets of children under 18 and for taking into account any child-related deductions. If both parents have custody and no child support is paid, the children’s income and assets will be divided equally between the parents. The same will apply to any child-related deductions.
Joint accounts will usually be split 50-50. Securities, vehicles or works of art will be attributed to the person they belong to under civil law.
Taxation will depend on the entry in the land register: if only one name is listed, this person will be liable for the full property tax; if the names of both partners are recorded, the tax will be calculated proportionally based on their ownership ratio.
The Federal Act on Individual Taxation is due to take effect no later than 1 January 2032.
Please note that all of this information is provided for general guidance only and does not replace individual tax advice.
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