Switzerland Votes on Individual Taxation: What Expats Need to Know

On March 8, 2026, Swiss voters will decide whether to replace joint taxation of married couples with individual taxation. Even if you don’t have voting rights, the outcome could significantly change how you and your spouse are taxed. Here’s what you need to understand.

What’s Changing?

Today, married couples in Switzerland file a single joint tax return. Both incomes are added together, and a single tax rate is applied to the combined total. Because of Switzerland’s progressive tax system, this often pushes couples into a higher tax bracket than they would face individually. This is the so-called “marriage penalty” (Heiratsstrafe).

The Federal Act on Individual Taxation (Bundesgesetz über die Individualbesteuerung) would end this system. If voters approve it on March 8, every person in Switzerland would be taxed individually, regardless of marital status. Each spouse would file their own separate tax return, declaring their own income and assets. The reform applies at all levels: federal, cantonal, and municipal.

If approved, the new system would take effect by 2032 at the latest, giving the federal government and all 26 cantons time to adapt their tax systems.

For the background on how the current marriage penalty works, including calculation examples across cantons, see our detailed guide: Marriage Penalty: What Impact Does Marriage Have on Taxation?

Who Pays Less, Who Pays More?

According to the Federal Tax Administration (ESTV), approximately 50% of taxpayers would pay less under the new system, 36% would see no change, and 14% would pay more.

But those averages don’t tell the whole story. The impact depends almost entirely on one factor: how your household income is split between you and your spouse.

Dual-Income Couples with Similar Earnings: The Winners

If both partners earn roughly the same amount, you benefit. The following examples show the impact on direct federal tax only (cantonal and municipal taxes are separate).

No children:

Household Income	Split	Tax Today	After Reform	You Save
CHF 80,000	40k + 40k	CHF 357	CHF 270	CHF 87/yr (−24%)
CHF 180,000	90k + 90k	CHF 6,602	CHF 3,646	CHF 2,956/yr (−45%)
CHF 280,000	140k + 140k	CHF 19,602	CHF 12,423	CHF 7,179/yr (−37%)

With two children:

Household Income	Split	Tax Today	After Reform	You Save
CHF 80,000	40k + 40k	CHF 0	CHF 0	No change
CHF 180,000	90k + 90k	CHF 4,305	CHF 1,507	CHF 2,798/yr (−65%)
CHF 280,000	140k + 140k	CHF 17,126	CHF 9,492	CHF 7,634/yr (−45%)

Source: Federal Tax Administration (ESTV), 2026 calculations

The pattern is clear: the higher the household income and the more equal the split, the bigger the savings. A family earning CHF 180,000 with equal incomes and two children would see their federal tax bill drop by almost two-thirds.

Single-Income Married Couples: The Losers

If only one partner earns income, you lose the current “marriage bonus,” the favorable joint taxation rate that currently benefits single-earner households.

No children:

Household Income	Split	Tax Today	After Reform	You Pay More
CHF 80,000	80k + 0	CHF 761	CHF 1,102	+CHF 341/yr (+45%)
CHF 180,000	180k + 0	CHF 8,435	CHF 10,722	+CHF 2,287/yr (+27%)
CHF 280,000	280k + 0	CHF 21,435	CHF 23,819	+CHF 2,384/yr (+11%)

With two children:

Household Income	Split	Tax Today	After Reform	You Pay More
CHF 80,000	80k + 0	CHF 0	CHF 424	+CHF 424/yr
CHF 180,000	180k + 0	CHF 5,959	CHF 8,977	+CHF 3,018/yr (+51%)
CHF 280,000	280k + 0	CHF 18,959	CHF 21,871	+CHF 2,912/yr (+15%)

Source: Federal Tax Administration (ESTV), 2026 calculations

A single-earner family with CHF 180,000 and two children faces a 51% increase in federal tax. The reform does not include any compensating deduction for single-income households.

Real-World Scenarios: Unequal Income Splits

Most households don't have a perfect 50/50 or 100/0 split. Here's how more realistic income distributions play out at the federal level:

Household Income	Split	Children	Impact
CHF 100,000	70k + 30k	1	Saves CHF 17/yr
CHF 140,000	70k + 70k	2	Saves CHF 1,211/yr
CHF 140,000	100k + 40k	1	Saves CHF 256/yr
CHF 200,000	110k + 90k	2	Saves CHF 1,065/yr
CHF 210,000	170k + 40k	2	Saves CHF 456/yr
CHF 140,000	120k + 20k	2	Pays CHF 724 more/yr
CHF 80,000	80k + 0	3	Pays CHF 93 more/yr

Sources: Federal Tax Administration via watson.ch; Blick calculations using official ESTV calculator

The tipping point depends on how unequal the split is. Couples with a roughly 70/30 distribution or more balanced generally benefit. Once the split reaches about 85/15 or more extreme, the loss of the marriage deduction and the full progression on the higher earner's income starts to outweigh the benefits, especially with children.

Retired Couples: Often Winners

Retired couples where both spouses receive AHV and pension fund income, which typically results in a near-equal income split, are among the biggest beneficiaries. According to federal estimates, approximately 46% of the total tax relief (around CHF 276 million of the projected CHF 600 million annual revenue reduction) would flow to retirees, even though they represent only about a quarter of all taxpayers.

Singles: Minimal Changes

Singles are already taxed individually, so the direct impact is smaller. Low earners generally pay slightly less due to adjusted rates, while higher earners pay marginally more:

Income	Children	Impact
CHF 80,000	None	Saves CHF 169/yr (−13%)
CHF 180,000	None	Pays CHF 544 more/yr (+5%)
CHF 80,000	2	No change
CHF 180,000	2	Pays CHF 662 more/yr (+10%)

Source: Federal Tax Administration (ESTV), 2026 calculations

What Changes in Your Tax Return

Beyond the tax amounts, the reform changes how married couples file and claim deductions.

Two Separate Returns

Each spouse would file their own tax return. The tax authorities estimate this will create approximately 1.7 million additional tax dossiers across Switzerland.

How Assets Are Allocated

Assets would not simply be split 50/50. Allocation follows civil-law ownership:

Asset Type	How It's Allocated
Employment income and pensions	Each person declares their own salary, pension, and personal income
Real estate	Based on the land registry (Grundbuch) entry. Co-owners declare proportional shares
Joint bank accounts	Split 50/50 between spouses
Securities and other assets	Attributed to the legal owner. Joint assets divided by ownership share
Mortgage debt and interest	Proportional to property ownership per Grundbuch

This makes property ownership structure critically important under the new system.

Deductions That Disappear and Change

The child deduction is split 50/50 between parents (each claims CHF 6,000). The married-couple and dual-earner deductions become unnecessary since incomes are no longer combined. Cantonal child deductions vary widely, from CHF 3,000 in Schaffhausen to CHF 25,000 in Ticino.

Impact on Pillar 2 and Pillar 3a

Under the current system, if both spouses withdraw pension capital (Pillar 2 or Pillar 3a) in the same year, their withdrawals are combined and taxed together at a higher progression rate. Under individual taxation, each spouse's withdrawal would be taxed separately, eliminating the aggregation effect entirely.

This is particularly relevant for retirement planning. Couples who both plan to withdraw pension capital could benefit significantly from independent taxation of their withdrawals.

Pillar 3a contribution deductions remain per-person and are unaffected by the reform. Each spouse continues to deduct their own Pillar 2 buy-ins and Pillar 3a contributions individually, as they do today.

What You Should Do Now

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This article covers the direct federal tax implications of the proposed reform. Cantonal and municipal tax impacts will vary depending on how each canton implements the changes. All tax figures are based on simulations published by the Federal Tax Administration (ESTV) for the 2026 tax year.

For background on how the current marriage penalty system works, including cantonal comparison examples, see our guide: Marriage Penalty: What Impact Does Marriage Have on Taxation?