New FTA Comparison 2026: Companies pay less Tax, individuals more – what it means for you

What the new figures show

The FTA comparison measures how heavily income and profits are actually burdened by the direct taxes of cantons and municipalities. For companies, the picture is astonishingly uniform across Switzerland: only three cantons recorded any increase in the tax take between 2008 and 2026 – almost everywhere else, the profit tax burden has fallen over the years, most recently to an average of just under 9 percent. For individuals, the development is much more heterogeneous: twelve cantons record an increase compared with the previous year, fourteen a decrease – but in the national average, the burden is rising. Worth knowing: the detailed report on the tax exploitation index is no longer published annually; however, the underlying data for 2026 is publicly available on the FTA website.

Why the gap is widening

Tax competition has a more direct effect on companies: cantons deliberately cut profit tax rates to retain or attract firms – most recently Lucerne, which lowered corporate taxation again with its tax law revision, or Zug with its reduced tax multiplier from 2026. At the same time, the OECD minimum tax sets a floor for large corporations, limiting downward room for the big players – while SMEs below the revenue threshold benefit fully from low cantonal rates. For individuals, opposing forces are at work: rising incomes slip into higher progression brackets, while relief measures – higher deductions, lower tariffs – occur only selectively and vary greatly by canton. On balance, the middle class pays more in real terms in many places, while companies are relieved.

What this means for companies

For businesses in Central Switzerland, the figures are good news at first glance: Zug and Lucerne are among the most attractive locations in the country. Nevertheless, a closer look pays off, because the differences between cantons and even municipalities remain considerable. What matters is the overall calculation: profit tax, capital tax, but also the burden on the owner as a private individual – think dividend versus salary. Precisely because profit taxes are falling while income taxes are rising, the optimum in the remuneration strategy is shifting: those who retain profits in the company or draw them as dividends may fare differently than just a few years ago, depending on the constellation. Such decisions should not be made in isolation but as part of overall planning – with no guarantee that every variant works the same way in every canton.

What individuals can review now

For private individuals, this development does not mean standing idly by. The classic levers are worth reviewing: pension fund buy-ins, pillar 3a contributions, correctly claiming professional expenses, further-education and maintenance deductions, and – in the case of major changes such as retirement, inheritance or relocation – forward-looking planning across several tax years. Whether and to what extent individual measures pay off depends heavily on the canton, municipality and personal situation; blanket recommendations would be out of place here. An individual analysis quickly shows where your realistic potential lies. The timing of income can also be shaped to some extent: those who stagger a bonus, a lump-sum payment or the withdrawal of pension assets over several years break the progression – although the effect depends heavily on the cantonal tariff and should be professionally reviewed.