On March 8, 2026, voters approved the Federal Act on Individual Taxation with around 54% voting in favor, thereby opting for a new tax system that is no longer dependent on marital status.
What is individual taxation?
Currently, spouses and persons in registered partnerships in Switzerland are taxed jointly, i.e. their incomes are added together regardless of their marital status (factor addition), which, as a result of progressive income tax rates for direct federal tax, can lead to a higher tax burden compared to unmarried couples. The reform aims to abolish this so-called marriage penalty, which was already ruled unconstitutional by the Federal Supreme Court in 1984.
With individual taxation, each person’s income and assets are taxed separately, i.e. individually, regardless of marital status. Each taxpayer completes their own tax return and declares their income and assets in accordance with civil law. Individual taxation applies not only at federal level, but also in the cantons and municipalities. However, each canton continues to set its own tax rates and child deductions.
According to estimates, the federal law on individual taxation will lead to a lower federal tax burden for around half of taxpayers. Business associations expect additional incentives to work, because taxation for second incomes starts at zero and progression only takes effect later. Opponents of the bill had argued that the tax burden on married couples with only one working spouse would increase. For the cantonal tax administrations, the administrative burden will increase due to the significantly higher number of tax returns to be processed.
What does individual taxation mean in concrete terms?
- The introduction of individual taxation will mainly benefit married couples with similar incomes in terms of direct federal tax, as the addition of factors will no longer apply. For families with only one income, however, the tax burden may increase. Who ultimately benefits and who pays more depends heavily on individual income and asset structures – especially for married couples with unequal income distribution.
- Couples who were previously assessed jointly will now have to file separate tax returns. In addition to a certain amount of additional administrative effort, this also raises material questions regarding the civil law allocation of income and assets.
- In the case of real estate, it must be clarified who is registered as the owner in the land register, because civil law ownership is decisive. If properties are jointly owned, the corresponding value ratio according to the land register is decisive. At the time of the introduction of individual taxation, the taxation of the imputed rental value will no longer apply (see our Tax News of September 29, 2025).
- Debts and debt interest—insofar as they can still be claimed to a limited extent after the abolition of the taxation of imputed rental value for rented or leased properties — could only be deducted by the person who is also the debtor under the mortgage agreement.
- If both spouses work in their own business, it may be worthwhile to conduct a detailed analysis of the existing structure due to the changed framework conditions.
- In cases of joint custody, child deductions and childcare costs (e.g., for daycare) will in future be divided equally between both parents. As these deductions cannot be divided proportionally between the parents based on their income, this may mean that some of the deductions remain unused if the second earner has a low income.
- Capital withdrawals from the second pillar and pillar 3a of each spouse will in future be taxed independently of each other. Only capital withdrawals paid out to the same person in the same year will be added together. The Federal Council’s plan to increase taxation on capital withdrawals was recently rejected by parliament (see our news of March 5, 2026).
- Various social security benefits (e.g., scholarships, health insurance premium reductions, supplementary benefits) are linked to an economic household assessment. With individual taxation, this will lead to a divergence of the systems.
Outlook
Based on current information, the introduction of individual taxation is planned for 2032 at the latest. The introduction of individual taxation at federal level will force the cantons to adapt their systems as well. The details of the cantonal implementation are not yet known.
The Center Party is expected to stick to its popular initiative “Yes to fair federal taxes for married couples too – end discrimination against marriage!” This initiative calls for spouses to continue to be taxed jointly, but with an alternative tax calculation for married couples. The Center Party’s initiative is pending in parliament.
Our tip: We recommend that you check how the new regulation will affect your individual situation. The effects vary greatly depending on your income and asset structure. We are happy to answer any questions you may have.