On 8 March 2026, Swiss voters approved a major reform of the tax system: the introduction of individual taxation. With around 54% of voters supporting the proposal, Switzerland will gradually move away from the current system under which married couples file a joint tax return.
The reform primarily aims to eliminate the so-called “marriage penalty”, a situation in which married couples, particularly those with two incomes, may pay more tax than unmarried couples with similar earnings.
The new system is expected to be introduced no earlier than 1 January 2030 and at the latest by 2032, giving the Confederation and the cantons time to adapt their tax laws and administrative systems. The reform will apply at all levels of taxation, meaning federal, cantonal and municipal taxes.
What changes under individual taxation?
Currently, married couples and persons in registered partnerships submit one joint tax return, combining their income and assets. Unmarried couples, by contrast, are taxed individually based on separate tax returns.
Under the new system, each spouse will file their own tax return, declaring their individual income, wealth and deductions. Each spouse will also be personally responsible for their own tax liability.
As joint taxation disappears, the allocation of income and assets between spouses will become more important. For couples with shared assets or more complex financial structures, this may require clearer documentation and a more precise allocation of ownership. Where assets are jointly owned, they will generally need to be allocated between the spouses, often on a 50/50 basis, unless another ownership structure can be demonstrated.
Who benefits and who might lose?
Overall, the reform aims to ensure that married and unmarried couples are treated equally for tax purposes. However, the actual impact will depend largely on how income is distributed within a household.
Couples with two similar incomes are likely to benefit from the reform. The same may apply to retired couples receiving comparable pension income, as these households previously faced the progression effect created by combining their income under a joint tax return.
By contrast, single-earner couples or households where one spouse earns significantly more than the other may face a higher tax burden compared to the current system. Under joint taxation, such households can sometimes benefit from a “marriage bonus”, which disappears under individual taxation.
To mitigate potential disadvantages for families, the child deduction for direct federal tax will be increased, helping ensure that couples with children and single parents are not disproportionately affected.
The reform will also affect individuals taxed under the lump-sum taxation regime. Currently, spouses can only benefit from this regime jointly. Under the new system, each spouse will be assessed individually, meaning that one spouse could be taxed under the lump-sum regime while the other is taxed under the ordinary rules.
Why was the reform introduced?
The reform primarily seeks to address two long-standing issues.
First, it aims to eliminate the “marriage penalty”. For decades, married couples with two incomes could be pushed into higher tax brackets because their income was combined and taxed together. Due to Switzerland’s progressive tax rates, this often resulted in a higher overall tax burden for married couples.
Second, supporters of the reform argue that individual taxation could encourage greater workforce participation. Under the current system, additional income earned by the second earner in a household may be taxed at a relatively high marginal rate once combined with the spouse’s income. Supporters therefore believe the reform could encourage second earners to increase their employment, potentially supporting labour market participation and economic growth.
What should taxpayers consider already?
For most taxpayers, nothing will change immediately. However, the reform highlights several topics that may become more relevant in the future, including:
Ownership of assets and investments
Allocation of debts and financing structures
Distribution of income between spouses
Tax planning for international or high-net-worth families
For households with complex financial or asset structures, it may therefore be advisable to review how assets and income are allocated within the family.
Should you require any assistance to plan the optimal tax set-up, please do not hesitate to reach out.
