Tax-favourable cantons in Switzerland

Depending on which canton you live in, the amount of taxes you owe the government can vary greatly. Although the ban on unjustified tax breaks is designed to prevent a canton from attracting more taxpayers by offering outrageously low tax rates, there are still significant differences between cantons. This also applies to the income tax, of course. But which are the tax heavens of Switzerland? If you live in one of these 3 cantons, you're in luck.


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1. Zug

The Canton of Zug is known for being a small tax paradise. In 2020, the Canton of Zug is once again the front-runner in terms of low tax rates. With a tax burden of 22.4 percent, Zug has the lowest tax burden in a nationwide comparison of cantonal capitals. But it one can do even better.

Although the Höllgrotten are a popular attraction, the municipality of Baar is anything but a tax hell. At only 22.1 percent, the picturesque municipality has the lowest tax burden in Switzerland. The most expensive is the municipality of Menzingen (23.3 percent), but even that is cheap in Swiss-wide comparison.

2. Obwalden

The Canton of Obwalden has made second place. However, with a tax burden of 24.3 percent, the main town of Sarnen is somewhat more expensive than Zug. This is despite the fact that the municipality is the most tax-efficient within the canton of Obwalden.

Obwalden residents pay the most in the municipality of Giswil, which has a tax rate of 26.5 percent. The original Swiss canton is thus a small tax paradise.

3. Appenzell Innerrhoden

The pearl of the east, Appenzell Innerrhoden, is not only known for its tasty cheese, but also for its low tax burden. Residents of the municipality of Appenzell pay the least, with a tax rate of 24.4 percent.

Somewhat more expensive is live for the people of Eggerstanden. The municipality about 4 kilometres east of the main town has a tax rate of 27.3 percent which is the highest tax rate in the canton. In the cantonal comparison, however, they are still well suited.

Many Geneva residents might envy the people of Appenzell. Because with a tax rate of 45 percent, the residents of various Geneva municipalities have to pay by far the most.

Do you need help calculating the taxes in your canton? The specialists at taxea are happy to assist you with their comprehensive expertise.

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