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Individual taxation in Switzerland: what changes for taxpayers and families

In a nutshell. On 8 March 2026 the Swiss people approved the individual taxation reform: every person will be taxed separately on their own income, regardless of marital status. The change will come into force by 2032 and will significantly modify how families, singles and cohabiting partners pay taxes. The Confederation estimates that around 50% of taxpayers will pay less, 14% will pay more, and the rest will remain substantially unchanged.

A historic reform, already decided

In Switzerland, until today, spouses file a joint tax return: their incomes and assets are added together and taxed jointly, with a specific tariff for married couples. It is a system that, especially for couples with two similar incomes, has produced for years the phenomenon known as the "marriage penalty": the married couple ends up paying more tax than they would as unmarried cohabitants.

On 8 March 2026, the Swiss people put an end to this system. With 54.26% of votes in favour (1,662,017 yes against 1,400,963 no, official federal vote data), the Federal Act on Individual Taxation was approved and will become the foundation of the Swiss tax system for individuals.

It is no longer a political hypothesis: it is a decision taken, written into law. One important thing, however, changes: the actual timing of application.

When it actually comes into force

The effective entry into force of individual taxation is expected by 2032, with a six-year transitional period. It is not a delaying choice: it is needed because the Confederation and the twenty-six cantons have to adapt IT systems, administrative processes and staffing. The Confederation alone estimates an increase of around 1.7 million tax returns at national level; Canton Ticino, on its own, may have to hire about forty additional people to manage the higher workload.

For taxpayers this means two things. The first is that nothing changes immediately: in the coming years, returns continue to be filed under current rules. The second is that it pays to start thinking about it now: some asset, family or career choices made today will fully take effect precisely in the post-reform world.

How individual taxation works

The logic is simple and already applies today to those who are not married: every person is taxed on their own income, files their own return and pays their own taxes. The same tariff applies to everyone — singles, cohabiting partners, spouses, registered partnerships — without the special tariff that today exists for married couples.

The main change compared with today therefore concerns spouses and registered partnerships: they will move from a joint return, based on combined incomes, to two separate returns, one per partner. Joint assets are split according to the rules of civil law.

In practice:

• No more spouse tariff: everyone taxed on the same progressive scale.
• No more income pooling: each partner climbs the progressive curve only with their own income.
• The child deduction for federal direct tax rises from CHF 6,800 to CHF 12,000 (recognised in both parents' returns, in a split share).
• Rates are reduced on low and medium incomes and slightly raised on very high incomes.

Who pays less and who pays more

This is the most frequent question, and it is right to answer with official Confederation data, not with partisan scenarios. The estimated picture is:

• about 50% of taxpayers will pay less;
• about 14% will pay more tax;
• about 36% will see no significant change.

The average relief estimated by the Confederation is around CHF 69 per year per taxpayer. The cost for the federal coffers is estimated at around CHF 600 million in the first period.

In terms of profiles, the reform has the following impact:

• Couples with two similar incomes → tend to pay less: it is the category most affected today by the "marriage penalty".
• Couples with one part-time partner and children → pay less, especially thanks to the higher child deduction.
• Couples with one high income → pay more: this is the most politically debated critical point.
• Singles with low and medium incomes → generally pay less.
• Singles with very high incomes → may pay more.
• Retired couples with two pensions → generally pay less.
• Single parents → generally neutral impact.

A controversial political choice

Behind the reform there is a long political battle. The original push comes from the FDP Women, who with the popular initiative "For individual taxation regardless of marital status" opened the debate. The act approved on 8 March 2026 is the indirect counterproposal of Parliament, which found a majority, albeit a narrow one.

In favour, alongside the FDP Women, were the SP, the Greens, the Green Liberals and most of the trade unions: the main argument is gender equality and the incentive for female labour, today penalised by the fact that the couple's second income enters the progression of the first.

Against were the SVP, The Centre, the EPP and the EDU, as well as a large part of cantonal finance directors, concerned about the additional workload and the impact on cantonal public finances. The Centre keeps active its own separate popular initiative ("For fair taxes"), proposing to maintain income pooling: a possible front of political tension in the coming years.

The SVP has circulated very critical numerical scenarios on the reform (for certain profiles it talks of tax increases of around 65% for a single-income married couple). These are however partisan calculations: the official Confederation data, which should be taken as the reference, point to an average relief per taxpayer, with a minority of losers.

In line with Europe

Switzerland was one of the few European countries still maintaining joint taxation of spouses. In Germany, France, Spain, the United Kingdom, Italy, Sweden, Denmark and most OECD countries, individual taxation is already individual, with national variants on family deductions. With the reform, Switzerland aligns with the European standard of taxation independent of marital status.

What to do already today

Even if the entry into force will come by 2032, some things are worth looking at now, especially if you fall into one of the categories most affected by the reform.

• Couple with one high income: it is worth assessing in good time how income and deductions will be allocated under the new logic, and reviewing family and asset planning.
• Couple with two incomes and children: the higher child deduction and the abolition of cumulative progression may significantly improve the situation; it pays to understand the effect in advance.
• People with significant income and assets: the move from joint to individual taxation may change investment, tax residence or wealth transfer choices.
• Entrepreneurs and company shareholders: the interaction between dividends, salary and the new taxation of individuals will have to be recalibrated on the new system.

How we help

For a fiduciary, a reform of this scale means one thing: our clients — individuals, families, entrepreneurs — need to understand first what will change for them and act ahead of time where needed. Not in immediate panic, but with lucid planning, because some choices made today will only take full effect in the post-reform world.

Fidav has been supporting individuals and families resident in Ticino, cross-border workers and taxpayers living cross-border between Italy and Switzerland since 1982. In the new scenario we will continue to do what we have always done: look at the real case, calculate the real effects on your profile and propose the most sensible tax planning. Read more about our tax advisory for individuals or, if you are an entrepreneur, tax advisory for companies, where we also look at the interaction between company, dividends and the new taxation.

Want to understand what will really change for you? Chat with us on WhatsApp at +41 79 741 02 89 or call +41 91 640 40 20 for an initial discussion.

FAQ (visible on page + FAQPage schema above)

What is individual taxation in Switzerland? Individual taxation is a tax system in which every individual is taxed separately on their own income, regardless of marital status. The same logic applies to singles, married couples, cohabiting partners and registered partnerships. It was approved by the Swiss people on 8 March 2026 and will gradually replace the current system of joint taxation of spouses by 2032.

When does individual taxation come into force in Switzerland? The law has already been approved, but actual entry into force is expected by 2032. A six-year transitional period has been granted to allow the Confederation and the 26 cantons to adapt IT systems, procedures and staffing, considering that the number of tax returns will increase by around 1.7 million at national level.

Who pays less and who pays more under individual taxation? According to Confederation estimates, around 50% of taxpayers will pay less tax and around 14% (1 in 7) will pay more; for the remaining 36% there will be no significant change. Couples with two similar incomes benefit in particular, also thanks to the child deduction that rises to CHF 12,000. Couples with only one high income and singles with very high incomes generally pay more.

Do I have to change anything immediately in my tax return? No, until the reform comes into force, the current system of joint taxation of spouses continues to apply normally. The returns of the coming years are filed under current rules. The changes will arrive gradually, canton by canton, by 2032 at the latest. However, it is useful to start assessing your case in good time.

Does individual taxation really benefit those with only one income in the family? For traditional single-income couples, the reform generally represents an increase in the tax burden compared with the current system. The higher the income of the working partner, the higher the additional burden. It is one of the most debated critical points of the reform. Careful family tax planning therefore becomes important for those in this situation.