Individual taxation adopted: what this reform means for you

A major shift in Switzerland's tax system.

On 8 March 2026, Swiss voters approved, by 54.2%, the Federal Act introducing individual taxation for married couples. This decision represents a major structural shift in the Swiss tax system: taxation will no longer be based on the married couple as an economic unit, but on the individual, regardless of marital status.

Beyond a procedural change involving separate tax returns, the reform will have tangible effects on income allocation, wealth structuring and retirement planning. 

Background and scope of the reform

Currently, married couples in Switzerland are taxed jointly: their income and assets are aggregated and subject to a single progressive tax scale. By contrast, unmarried couples are taxed separately.

Until the introduction of individual taxation for married couples, this difference in treatment has resulted in two distinct effects:

• a marriage penalty for couples with similar levels of income;

• a marriage bonus for single‑income households or couples with highly unequal incomes.

The individual taxation reform aims to eliminate these distortions by applying a single principle: each individual is taxed separately on their own income and assets, as is already the case for single individuals and cohabiting couples.

The reform will apply not only to federal direct tax, but also to cantonal and municipal taxes, through amendments to the Federal Tax Harmonisation Act. However, the cantons will retain significant autonomy in setting their tax rates and deductions, meaning that the practical impact of the reform will vary depending on the taxpayer’s canton of residence. 

Key technical changes

Separate tax returns for each spouse

With the introduction of individual taxation, each spouse will be required to file their own tax return. Income will be taxed separately, while assets will be allocated in accordance with civil law rules:

• Joint bank accounts: assets are generally split equally between spouses,

• Real estate: assets are allocated based on the land register entry,

• Debts and related interest: attributed to the debtor as defined in the contractual arrangements,

• Other assets (artworks, vehicles, shareholdings): allocated according to ownership, with a presumption of equal sharing in the absence of supporting documentation. 

In certain wealth situations, these allocations may be complex. Spouses will be responsible for documenting ownership—purchase agreements, bank statements, marriage contracts—in order to justify an  allocation that differs from the legal presumption of equal division.

Adjustment to tax scales and deductions

To support the transition to the new system, the legislator has provided for the following measures:

• an adjustment to the direct federal tax scale, with tax relief for low‑ and middle‑income earners and a slight increase for higher incomes;

• a significant increase in the child deduction for direct federal tax, rising from CHF 6,800 to CHF 12,000 per child and shared equally between spouses, in order to mitigate the impact on certain families.

Impact for retirement planning

The reform will also affect how pension planning is structured. Under individual taxation, each spouse will deduct their own Pillar 3a contributions and pension buy‑backs from their personal taxable income. For couples with unequal incomes, the spouse with the lower income may therefore see a reduced tax benefit.

Moreover, pension capital withdrawals will now be taxed separately per person and per year. While staggering withdrawals over time may still be advisable, the obligation to synchronise withdrawals from the second pillar and Pillar 3a between spouses will disappear, simplifying planning in certain situations.​‌

Who are the winners and losers?

In most cases, married couples where both spouses earn comparable incomes are likely to benefit from individual taxation. For these households, the reform brings taxation closer to that of unmarried couples, by mitigating the artificial progression effect resulting from the aggregation of incomes. Conversely, couples with a strong income disparity may face a higher tax burden.

Moreover, even individuals who are already taxed separately will be affected by the changes to the tax scale. High‑income taxpayers, whether married or not, may be required to contribute more, which underscores the need for a comprehensive review of overall tax planning. 

Anticipating the reform and planning the transition

With an expected entry into force no later than 1 January 2032, individual taxation provides a time horizon that allows for the anticipation of forthcoming adjustments. This transitional period offers a favourable framework for thoughtful planning, with impacts varying depending on income structures, family situations, asset ownership arrangements and the choices made by individual cantons.

The reform notably encourages a review of how income and assets are allocated between spouses, whether from professional income, shareholdings or real estate income. It also calls for an assessment of the structuring of financial flows and the consistency between economic reality and property rights recorded in the land register.  This new framework also leads to a reassessment of overall retirement planning, including the coordination of pension withdrawals, the choice between annuity and lump‑sum benefits, and buy‑back strategies. 

By promoting a more individualised approach to taxation, the reform also raises questions of overall coherence and balance in wealth planning, particularly in complex family or succession situations.

Indeed, some people who are currently living in cohabitation had chosen not to marry for tax reasons, often to the detriment of estate planning protection. This reform may prompt such couples to reconsider marriage, allowing for better protection of the surviving spouse—particularly through pension arrangements—while avoiding the heavy inheritance taxation applicable to cohabiting partners, which can reach up to 54.6% in the canton of Geneva and 50% in the canton of Vaud.

A major turning point to anticipate

The adoption of individual taxation is one of Switzerland's most significant tax reforms of recent decades. By introducing taxation independent of marital status, it aims to improve fairness and economic neutrality, while profoundly reshaping the traditional framework governing the taxation of couples.

Engaging in a discussion with a wealth solutions specialist makes it possible to turn a broad reform into a concrete action plan: scenario simulations, clarification of wealth structures, and alignment of pension and succession decisions with the implementation timeline.