Context

Currently, married couples are taxed jointly and unmarried couples are taxed individually. Different tax rates also apply. This means that married couples and unmarried couples pay different amounts of tax. This unequal treatment is to be abolished. Parliament has therefore passed the Federal Act on Individual Taxation. As a referendum has been called on this bill, it will be put to a vote.

The proposal

Under the bill, married couples will also be taxed individually in future. Each person will pay tax on their own income and assets, and the same tax rate will apply to everyone. This means that married couples and comparable unmarried couples will pay the same amount of tax in future. Many couples will benefit from this, but some will also have to pay more. To ensure that couples with children and single parents are not burdened too heavily, the child deduction for direct federal tax will be increased. The bill will reduce the tax burden on taxpayers by an estimated total of CHF 630 million per year in direct federal tax. The cantons will also have to introduce individual taxation. However, each canton will continue to set its own tax rates and child deductions. The bill is an indirect counterproposal to the popular initiative “For individual taxation regardless of marital status (tax fairness initiative)”.

Contents of the proposal

Context

Taxation based on marital status

Married and unmarried couples are currently taxed differently. If married couples pay more tax than unmarried couples in the same financial circumstances, this is referred to as a marriage penalty. If they pay less tax, this is referred to as a marriage bonus.

Joint taxation of married couples

Married couples are currently taxed jointly: the income and assets of both spouses are added together. This puts them in a higher tax bracket. In return, they receive various tax breaks, such as a more favorable tax rate.

Individual taxation of unmarried persons

Unmarried persons are currently taxed individually, even if they live together as a couple. Their income and assets are not added together. This means they remain in a lower tax bracket. In households with children, one parent usually receives a more favorable tax rate.

Unequal tax burdens

Under the current tax system, married couples generally pay either more or less tax than unmarried couples in the same economic circumstances. If both spouses earn a similar income, they tend to pay more tax to the federal government and in some cantons than unmarried couples. This is particularly true for married couples with children. If, on the other hand, the spouses' incomes are unevenly distributed, they tend to pay less tax than unmarried couples. This applies to both federal and cantonal taxes.

From the initiative to the counterproposal

For many years, there has been discussion at the federal level about a tax reform that would abolish the marriage penalty. In 2020, Parliament instructed the Federal Council to submit a bill introducing individual taxation. At the same time, a committee submitted the popular initiative “For individual taxation independent of marital status (tax fairness initiative)” in 2021. In 2025, Parliament passed the law introducing individual taxation as an indirect counterproposal to the popular initiative. A referendum was launched against this law, which is why it will be put to a popular vote.

The proposal

Taxation independent of marital status

The law on individual taxation stipulates that taxation will no longer depend on marital status: in future, each person will be taxed on their own income and assets. This means that they will pay the same amount of tax regardless of whether they are married or not. Individual taxation applies to the federal government as well as to the cantons and municipalities. If the law is passed, it will come into force in 2032 at the latest.

One tax declaration per person

Married persons will now each submit their own tax declaration. Income such as wages and pensions will be taxed separately for each person. Assets and the income they generate will be divided according to ownership. A joint bank account, for example, will be divided equally. In the case of real estate, the entry in the land register will apply. Each person will claim their own deductions. Parents will split child-related deductions equally for direct federal tax purposes.

Tax rate and child deduction

The same tax rate will now apply to married and unmarried couples. To ease the burden on families and cushion additional costs, the child deduction for direct federal tax will be increased from CHF 6,800 to CHF 12,000. The reform will result in an estimated total reduction of CHF 630 million per year in direct federal tax for all taxpayers. If the proposal is accepted, the cantons will also amend their tax laws.

If rejected

The proposal is an indirect counterproposal to the popular initiative “For individual taxation regardless of marital status (tax fairness initiative)”. The initiative committee has conditionally withdrawn the initiative in favor of the counterproposal. This means that if the people accept the counterproposal, the initiative will be withdrawn. If the people reject the counterproposal, the initiative committee will decide whether the initiative will be put to a vote.

Impact of the proposal

On married couples

The impact of individual taxation on married couples depends primarily on how income is distributed between the spouses. If both spouses earn a similar level of income, the couple will tend to pay less direct federal tax under the reform than they do today. This also applies to many married couples of retirement age. Married couples with only one income or a very uneven distribution of income, on the other hand, will tend to pay more direct federal tax. This is particularly true if they have children, even if the increase in the child allowance counteracts this. The higher the couple's income, the greater the tax relief or additional burden resulting from the reform.

On unmarried persons

Unmarried persons are already taxed individually today. Nevertheless, they are affected by the reform. The adjustment of the tax rate for direct federal tax means that most unmarried people will pay less tax. This will particularly benefit people with low and middle incomes. People with high incomes, on the other hand, will pay more tax. Unmarried people with children and low or middle incomes already pay no direct federal tax. This will remain the case even after the proposal is implemented.

Cantonal taxes

For most taxpayers, cantonal taxes are significantly higher than direct federal tax. This is particularly true for people with low or middle incomes. The changes in cantonal taxes will depend on how the cantons implement individual taxation. As with direct federal tax, it is likely that the switch to individual taxation will be more advantageous for married couples with an even distribution of income than for those with an uneven distribution of income.

On tax revenues

The proposal will result in an estimated CHF 630 million reduction in annual direct federal tax revenues. Of this, around CHF 130 million will be attributable to the cantons, as they share in the revenue from direct federal tax. The impact of the proposal on cantonal tax revenue will depend on how the cantons implement individual taxation.

On employment

Individual taxation is likely to increase the incentive to take up gainful employment or increase the level of employment. The effect arises for the following reason: if the second earner in a married couple increases their working hours, lower taxes will be levied on the additional income in future. Today, this additional income is taxed on the basis of the income of the primary earner. In future, the second income will be taxed separately. The additional income will therefore be taxed at a lower progressive rate.

Administrative burden

If individual taxation is introduced, the cantonal tax administrations will have to process around a third more tax returns. However, there are also simplifications: in the event of marriage, separation, or divorce, the tax authorities will no longer have to make any changes. Married taxpayers already declare certain income and deductions separately. In future, they will declare this and other information in their own tax returns.

Further consequences

The bill is limited to tax law. However, it may have an impact on how cantons and municipalities structure health insurance premium reductions or childcare center fees, for example.

Results

The proposal was accepted.

Voter turnout: 55.7 %
Yes votes: 54.3 %