The three layers
Every CHF of taxable income in Switzerland passes through three sovereign tax authorities:
- The Confederation — federal direct tax (Bundessteuer / IFD).
- Your canton — cantonal income tax.
- Your commune — communal income tax.
Each layer publishes its own progressive scale (Tarif / barème) and (for cantons and communes) a multiplier on top. The federal scale is uniform across the country. The cantonal and communal layers are fully sovereign.
The federal slice
Federal direct tax (IFD) is the smallest of the three for most people. It tops out at an 11.5 % effective rate at very high incomes. For a typical salaried employee on CHF 100 k single, federal tax is around CHF 1 500–3 000. It's the same number whether you live in Geneva or Zug — federal scale is uniform.
The cantonal slice
The 26 cantons each publish their own "einfache Steuer" scale (the base curve), then a cantonal multiplier on top (Staatssteuerfuss). The base curves vary wildly:
- Bern uses a steep early curve, top marginal rate 6.5 %, multiplier 306 % (3.06 Einheiten).
- Zug uses a flat early curve, top marginal rate 8 %, multiplier 80 %.
- Geneva uses an entirely different model (centimes additionnels on top of impôt de base, plus a 12 % rebate).
- Basel-Landschaft uses a continuous logarithmic formula instead of a bracket schedule.
The cantonal layer typically accounts for 40–60 % of your total tax bill.
The commune slice
Your commune (Gemeinde / commune / comune) levies a multiplier on the same cantonal "einfache Steuer". This is the Steuerfuss number you see on Optiqo. It ranges from ~50 % (Zug, Geneva) to ~180 % (Bern area).
Commune budgets are voted every November-December by the local legislative body (Gemeindeversammlung / conseil municipal). A new Steuerfuss takes effect for the following tax year.
Two cantons, one example
Same person — single, CHF 120 000 gross, age 40:
- Zürich (city) ZH: federal ~CHF 3 200 + cantonal ~CHF 6 800 + commune ~CHF 8 200 = CHF 18 200 total (15.2 % effective).
- Walchwil ZG: federal ~CHF 3 200 + cantonal ~CHF 2 800 + commune ~CHF 1 800 = CHF 7 800 total (6.5 % effective).
- Bern: federal ~CHF 3 200 + cantonal ~CHF 7 900 + commune ~CHF 9 400 = CHF 20 500 total (17.1 % effective).
Same person, three places, CHF 12 700 spread. That's the Swiss tax federation in a nutshell.
What this is and isn't
The variance is real and easily exploited — Switzerland has 2 060 communes; you can choose. Many high-net-worth individuals do choose, and there are entire industries built around helping them choose (e.g. fiduciaries specialising in cantonal moves).
What it isn't: a free lunch. The cheapest tax cantons (Zug, Schwyz, Nidwalden) compensate via higher property prices, longer commutes, tougher school admissions, or smaller social services. Tax-cheapest communes within those cantons (e.g. Walchwil, Wollerau) cost substantially more in housing than the canton average.