Switzerland is considered a low-tax country – but a closer look reveals major differences between the 26 cantons. Whether you are a private individual with a high income, an entrepreneur, or planning an inheritance, your place of residence or company location can make a difference of several thousand Swiss francs per year.

This article provides a clear overview of the Swiss cantonal tax comparison – with current figures on income tax, corporate profit tax, and inheritance tax.

The Swiss Tax System: Three Levels, One Major Difference

In Switzerland, taxes are collected at three levels: federal, cantonal, and municipal. Federal tax is the same for everyone – the maximum rate is 11.5% on taxable income.

However, cantonal and municipal taxes are decisive for the overall tax burden. These vary significantly depending on your place of residence or company location.

As a result, two people with identical income and the same personal circumstances can pay tens of thousands of francs more or less in taxes depending solely on their canton of residence.

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Income Tax Comparison of Swiss Cantons

Income tax is the most relevant type of tax for private individuals. A comparison of the top tax rates in the cantonal capitals reveals clear winners and losers.

The Most Tax-Favorable Cantons for Private Individuals

In a national comparison, the Central Swiss cantons particularly stand out:

• Schwyz is one of Switzerland's most tax-favorable cantons. In municipalities like Freienbach, the top tax rate is around 19.6% – less than half of what is due in the most expensive cantons.

• Zug impresses with an overall tax burden of around 22.4% in its cantonal capital – the lowest value among all cantonal capitals.

• Obwalden follows with around 24.3% in Sarnen, ranking _second among the most tax-favorable capitals.

The Most Tax-Friendly Cantons for Individuals

In a national comparison, Central Swiss cantons stand out in particular:

Schwyz is among the most tax-friendly cantons in Switzerland. In municipalities such as Freienbach, the top tax rate is around 19.6% – less than half of what applies in the most expensive cantons.

Zug offers an overall tax burden of around 22.4% in the cantonal capital – the lowest rate among all cantonal capitals.

Obwalden follows with around 24.3% in Sarnen, ranking second among the most tax-friendly cantonal capitals.

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The Most Expensive Cantons for Individuals

Those living in French-speaking Switzerland or larger cantons generally pay significantly more:

Geneva applies top tax rates of up to 44.2% in some municipalities.

Vaud, with a maximum income tax rate of 41.5%, is also well above the Swiss average.

Bern reaches a top tax rate of 40.85%, despite slight reductions in recent years.

Zurich is also considered a high-tax canton, with a top tax rate of around 40%.

The average top tax rate in cantonal capitals was 33.2% in 2025. The difference between the cheapest and most expensive canton is therefore more than 20 percentage points – a major difference that can quickly amount to tens of thousands of francs per year for high earners.

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Corporate Profit Tax Comparison: Swiss Cantons

Choosing the right legal structure also influences your overall tax situation. Before founding a company, entrepreneurs should compare whether an LLC or Corporation is the better option from a tax and liability perspective.

The Most Tax-Friendly Cantons for Companies

The Most Expensive Cantons for Companies

At the upper end of the scale are primarily the large urban cantons:

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The difference between the canton with the lowest rate (Zug, 13.48%) and the highest rate (Zurich, 24.62%) is over 11 percentage points. For a profit of CHF 100,000, this means an additional burden of around CHF 11,000 per year – solely due to the company's location.

Inheritance Tax Comparison: Swiss Cantons

Inheritance tax in Switzerland is regulated at cantonal level – and the differences could hardly be greater.

Direct descendants (children) and spouses are exempt from inheritance tax in all cantons. The comparison between cantons becomes especially important when assets are passed on to unrelated beneficiaries.

Inheritance Tax for Unrelated Beneficiaries (CHF 100,000, 2026)

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The conclusion is clear: In Geneva, an inheritance of CHF 100,000 transferred to an unrelated person can result in almost CHF 50,000 in taxes – while in Schwyz or Obwalden, no inheritance tax applies.

Anyone planning to transfer significant assets to unrelated beneficiaries should consider this factor during estate planning.

What Really Matters: The Overall Comparison

No single canton is the cheapest in all categories simultaneously. It's worth taking a holistic look at your own situation:

For high-income individuals, Schwyz, Zug, and Nidwalden offer the lowest income taxes.

For companies (corporations), Zug remains the most attractive location in Switzerland – and is also among the cheapest business locations worldwide in an international comparison.

For estate planning (inheritance for non-relatives), cantons like Schwyz, Obwalden, and Glarus clearly have an advantage.

For companies with a substantial presence in German-speaking Switzerland, Nidwalden, Valais, or Lucerne can also be interesting alternatives, combining economic proximity with low tax rates.

Important: Tax residency or company domicile is tied to legal and economic requirements. A change of domicile in Switzerland for tax reasons must be carefully planned and correctly implemented. Both private individuals and companies should consider the legal, administrative, and tax requirements before relocating.

Conclusion: Swiss Cantonal Taxes – A Comparison Worthwhile

Switzerland offers low taxes compared to international standards – but the differences within the country are significantly greater than many assume. Whether it's income, corporate, or inheritance tax: those who understand their initial situation and their options can legally and sustainably save on taxes.

However, the choice of a canton should not be based solely on tax comparisons. Factors such as quality of life, infrastructure, proximity to clients and employees, and the legal framework are equally crucial.

Would you like to know how you can optimize your tax situation in Switzerland? MKY Treuhandpartner provides expert and independent advice – whether you are an individual, a self-employed person, or a corporation. Contact us now.