While taxes in Switzerland are never very high, some towns, cities and cantons can be much cheaper when your annual tax return comes around. Now, a new study released by the Tages-Anzeiger has revealed the areas of the alpine nation with the cheapest and most expensive taxes.

Tax rates vary by up to 13 percent in Switzerland

To find out which towns in Switzerland have the cheapest and most expensive taxes, the Swiss newspaper analysed the combined federal, cantonal and local tax rates for a single person with a salary of 100.000 francs a year, along with other combinations involving pensions, spouses and children. In the study for 2022, they found that tax rates in Switzerland can vary by up to 13 percent once all taxes are combined. 

The Tages-Anzeiger noted that generally speaking, local councils (Gemeinde) in French-speaking Switzerland charge more in tax than communities east of the Röstigraben. Interestingly, the top and bottom 10 for tax rates in Switzerland were dominated by two Swiss cantons.

Which canton has the highest taxes in Switzerland?

For the most expensive tax rates in Switzerland, one canton's towns took up the top 19 places: Neuchâtel. Enges and Les Verrières, were found to have the highest tax rates overall, with a single person earning 100.000 francs a year having to pay 19,97 percent of their income to authorities.

The newspaper found that regardless of whether you are a single person, have a family with children or are claiming a pension, Neuchâtel is almost always the most expensive place to live. Tax-shy residents are also advised to avoid Canton Bern and Valais, as they were found to have almost equally expensive tax bills.

Where are Swiss taxes cheapest?

Perhaps unsurprisingly, given the large amount of international companies resident in the canton, all of the top 10 cheapest towns for taxes were in Canton Zug, with Baar taking the top spot with a total tax rate of 6,04 percent (for someone earning 100.000 francs a year). Zug itself (6,08) and Walchwil (6,11) rounded out the podium places.

The study concluded that anyone who already lives in a “tax haven” should expect to see their taxes fall in the coming months - many low-tax towns in Canton Zurich and Zug have already slashed their local tax rates this year. What’s more, many cantons like Schaffhausen and Schwyz have already started to cut cantonal rates, in an attempt to attract more affluent residents.

The cheapest and most expensive tax rates in Switzerland

In all, the cheapest percentage tax rates - for an income of 100.000 francs - were:

• 1. Baar (6,04)
• 2. Zug (6,08)
• 3. Walchwil (6,11)
• 4. Risch (6,14)
• 5. Unterägeri (6,17)
• 6. Steinhausen (6,20)
• 7. Cham (6,23)
• 8. Oberägeri (6,26)
• =9. Hünenberg (6,42)
• =9. Menzingen (6,42)

On the flip side, here are the 10 towns with the highest tax rates:

• =1. Enges (19,97)
• =1. Les Verrières (19,97)
• 3. Les Planchettes (19,88)
• =4. Cressier (19,79)
• =4. Lignières (19,79)
• 6. Val-de-Travers (19,70)
• =7. La Chaux-de-Fonds (19,62)
• =7. La Sagne (19,62)
• =7. La Brévine (19,62)
• =7. Brot-Plamboz (19,62)

For more information about the study, and to see how your local area compares, please consult the Tages-Anzeiger website.