Canton of Zurich Announces Major Tax Cut
Residents in the canton of Zurich are set to receive the largest tax cut in two decades. The reduction will apply to the income taxes of individuals living within the canton.
- The tax reduction lowers the cantonal tax multiplier by three percentage points, from 98% to 95% of the basic cantonal tax, and will take effect in 2026. - This represents the most significant income tax reduction in the canton in more than two decades. - The Cantonal Council approved the measure as part of the budget debate with a vote of 116 to 57. - Proponents of the cut, including the Finance Committee and the Centre Party, argue it is a key decision to maintain the canton's attractiveness for individuals and businesses. - The tax cut was passed despite a projected deficit of 139 million francs for 2026, with opponents from the Green and Social Democratic parties warning of a considerable loss of revenue. - For a married couple earning one million Swiss francs, the change will result in an annual tax saving of approximately 3,439 francs, while a single parent earning 40,000 francs will save about 25 francs. - This reduction for individuals follows smaller one-percentage-point cuts to the tax multiplier in both 2022 and 2024. - In a separate but related development, a proposal to lower the corporate tax rate from 7% to 6% was rejected by voters in a referendum in May 2025.
