The Swiss Times - Swiss News in English

Almost 20 percent of income goes to cantons and municipalities

In 2024, natural persons will pay an average of almost one fifth of their income in taxes to the canton and commune, while legal entities will pay an average of one tenth of their profits. This is shown by federal index figures. Direct federal tax is not included.

The tax burden will increase slightly in the current year compared to 2023, the Federal Finance Administration (FFA) wrote on Thursday. The differences are large from canton to canton, both for individuals and legal entities.

The FFA has published an index for legal entities and natural persons for the first time. According to this, an average of 9.5% of the taxable net profit of legal entities will go into the coffers of the cantons and municipalities in 2024, 0.2 percentage points more than in the previous year.

The highest burden is in the canton of Valais at 21% and in the canton of Ticino at 18%. Zurich, Bern, Geneva and Aargau are also above average. The most tax-efficient cantons are Zug with 2.8 percent and Schaffhausen with 3 percent. The tax burden for legal entities was lower in nine cantons and higher in 17 cantons.

In 2024, the fiscal charges levied by the cantons and communes on natural persons will burden the national average taxable income by 19.5 percent, also 0.2 percentage points more than in 2023. In 19 cantons, this so-called tax utilization increased, and in seven it decreased.

Zug remains the canton with the lowest tax take for natural persons. Vaud and Geneva are at the top end of the ranking. The tax take is also above average in Bern and Basel-Stadt. Zurich, on the other hand, is below the national average, while Ticino is around this average.

A higher tax rate is not necessarily the reason for a higher tax take. Tax take-up reflects the ratio between effective tax revenue and taxable income. An increase can be triggered by the fact that there are more high-income taxpayers in the canton.


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