Switzerland
Top Income Tax
13.2%
Marginal rate
Corporate Tax
14.9%
Standard rate
VAT / Sales Tax
8.1%
Standard rate
Capital Gains
0%
Standard rate
Overview
Switzerland offers low corporate taxes, no capital gains tax on investments, and a stable political environment. Tax rates vary significantly by canton, with Zug being famous for its low rates. The extremely high cost of living is offset by correspondingly high salaries.
Income Tax Brackets
| Income Range (CHF) | Tax Rate |
|---|---|
| 0 - 14,500 | 0% |
| 14,500 - 31,600 | 0.77% |
| 31,600 - 41,400 | 0.88% |
| 41,400 - 55,200 | 2.64% |
| 55,200 - 72,500 | 2.97% |
| 72,500 - 78,100 | 5.94% |
| 78,100 - 103,600 | 6.6% |
| 103,600 - 134,600 | 8.8% |
| 134,600 - 176,000 | 11% |
| 176,000 - 755,200 | 13.2% |
| 755,200+ | 11.5% |
Federal rates only. Cantonal and municipal taxes add 10-35% depending on location. Total can be 20-45%.
Corporate Tax
Standard Rate
14.9%
Federal 8.5% + cantonal/municipal rates. Effective rates range from 12-22% depending on canton. Zug and Schwyz among lowest.
VAT / Sales Tax
Standard Rate
8.1%
Reduced Rates
2.6%, 3.8%
2.6% on food, medicines, newspapers. 3.8% on accommodation. Lowest VAT in Europe.
Capital Gains Tax
Standard Rate
0%
No capital gains tax on private movable assets. Real estate gains taxed at cantonal level.
Social Security Contributions
Employee
6.4%
Employer
6.4%
Self-Employed
10%
AHV/IV/EO: 5.3% each. ALV: 1.1% each. Plus mandatory pension (BVG) and health insurance.
Special Tax Regimes
Lump-Sum Taxation (Forfait Fiscal)
Tax based on living expenses rather than actual income. Available in most cantons except Zurich and Basel.
Eligibility: Foreign nationals who do not carry out gainful activity in Switzerland. Minimum tax base varies by canton.
Pros & Cons
Pros
- No capital gains tax on private investments
- Low corporate tax rates
- Extremely stable economy and politics
- Lump-sum taxation option
Cons
- Very high cost of living
- Complex cantonal tax system
- No digital nomad visa
- Mandatory expensive health insurance
Living Indicators
Cost of Living Index
Expensive
Quality of Life Index
Excellent
Best For
Data Sources
Tax rate data for Switzerland is compiled from the following authoritative sources:
- OECD Tax Database
- Tax Foundation International Tax Competitiveness Index
- World Bank Business Enabling Environment
- Switzerland government tax authority publications
- PwC Worldwide Tax Summaries
Last verified: 2024-01
Disclaimer: This content is for informational purposes only and does not constitute tax advice. Tax laws change frequently. Always consult a qualified tax professional before making decisions about your tax residency or obligations.