Comparison of taxes for corporations and individuals
Looking to compare taxes in different places? PwC’s tax comparison gives you a quick overview of effective tax rates for corporations and individuals.
The tax rate applicable for individuals varies depending on their taxable income and their place of tax residency. You can compare the tax rates of the Swiss cantons for a taxable income of CHF 100,000, CHF 250,000 and for an income subject to the marginal tax rate (i.e., the rate applicable for the highest income brackets).
When it comes to corporate tax, you can even extend the comparison of effective rates beyond Switzerland. Whether you want to compare tax rates in the canton of Zurich with those in Germany or see how Hong Kong compares with the US, the comparison allows you to examine all the permutations worldwide. Note that the corporate tax rate comparison focuses on the ordinary corporate tax rates and does not include considerations around the OECD minimum taxation rules. The latter are only relevant for multinational groups with a consolidated annual revenue of at least EUR 750 million (also referred to as Pillar Two rules). For more information in this regard, please check out our Pillar Two development tracker.
The map of Switzerland below shows the tax rates for the capital of each canton. More information can be derived from the interactive map, which allows you to make your own comparisons.
Swiss corporate tax rates
Swiss corporate income tax rates for 2024 are largely in line with the 2023 tax rates. The graphic shows that the cantons of Berne, Zurich and Ticino have the highest tax rates in the country, while tax rates are significantly lower in Central Switzerland.
On one end of the spectrum is Zug, which has an effective tax rate of some 11.85%. On the other end of the spectrum is Berne, whose effective tax rate is nearly twice as high.
It should be noted, however, that the effective tax burden of a company can vary materially depending on the company’s chosen commune and depending on whether the company can benefit from tax incentives (such as the patent box, an R&D super deduction, tax holidays or a step up mechanism).
There are two notable cantonal developments as far as 2024 are concerned. On the one hand, Schaffhausen introduced a multi-stage rate increase (the graphic shows the tax rate for taxable income exceeding CHF 15m). On the other hand, Geneva has abolished the so-called ‘taxe professionelle’ and in turn increased its regular cantonal income tax rate. Both of these developments are to be seen against the backdrop of Pillar Two.
Corporate tax rates: EU and Switzerland
The Swiss cantons with the lowest tax rates (using Zug for illustration purposes) are attractive compared with the lowest tax rates in EU countries, ranking near the top of the international rankings. The highest-tax cantons (using Berne for illustration purposes) still rank in a middle position in this comparison.
Tax rates reflected in the table are:
- the most common rates if there are several rates applicable for different industries and/or sources of income
- the marginal tax rates if the rates are progressive or bracketed
- the rates applicable in the capital city or the important economic center if the rates vary by region, province or city
- not considering the OECD minimum taxation rules
Corporate tax rates: OECD and G20
The Swiss cantons with the lowest tax rates (using Zug for illustration purposes) are attractive compared with the lowest tax rates in the OECD/G20. The highest-tax cantons (using Berne for illustration purposes), where the tax burden is twice as high, rank in mid-table internationally.
Tax rates reflected in the table are:
- the most common rates if there are several rates applicable for different industries and/or sources of income
- the marginal tax rates if the rates are progressive or bracketed
- the rates applicable in the capital city or the important economic center if the rates vary by region, province or city
- not considering the OECD minimum taxation rules
Individual tax rates in Switzerland
Income tax rates in Switzerland vary considerably from canton to canton and even from municipality to municipality. For example, for a taxable income of CHF 100,000 the following canton capitals have tax rates below 15%: Zug, Schwyz, Appenzell. Nidwalden would be slightly higher at 15.20%. At the other end of the scale we have some capitals with a tax rate of more than 23% (Bern, Lausanne, Neuchatel and Basel-Stadt).
The maximum marginal tax rates for high incomes range from 22.22% in Zug all the way up to 45.00% in Geneva.
Please note that all calculations are done based on the following assumptions: marriage status single and no religion. Married status could lead to different results. The graphic below shows tax rates in the cantonal capitals.
Taxable income CHF 100,000
In this scenario the canton of Zug, or more precisely the city of Zug, has the lowest tax rate at 10.40%. Bringing up the rear is the city of Basel, (Basel-Stadt) with a tax rate more than twice as high (23.70%).
Taxable income CHF 250,000
The city of Zug once again tops the rankings in this scenario, with an attractive tax rate of 18.60%. The city of Basel (Basel-Stadt), however, is no longer in last position, which goes to the city of Lausanne with an income tax rate of 35.00%.
Marginal tax rate
At the bottom of the list is the city of Geneva, where the tax rate of 45.0% is more than twice as high as in Zug (22.22%). The City of Zurich has a marginal tax rate of 39.70%.
Depending on the level of taxable income, it makes sense to compare not only the various cantons and their cantonal capitals, but also individual municipalities in different cantons. So even though the city of Zug offers the lowest marginal tax rate of any cantonal capital, an even lower tax rate of 20.00% can be achieved in the canton of Schwyz, for example in the municipality of Freienbach.
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