Get married, pay less? Switzerland’s tax reform could make It reality

Switzerland is set to reform its federal tax system to make taxation fairer for couples by ending the so-called “marriage penalty,” which can cause married partners to pay higher taxes than unmarried couples with the same combined income. The planned system would tax all adults individually, with each person filing a separate tax return based solely on their own income and assets.

The reform will be decided in a national referendum on March 8, 2026. Authorities say the change could encourage more second earners, mainly women, to join or increase participation in the workforce, helping fill up to 60,000 full-time jobs. The measure is expected to reduce federal tax revenue by about CHF 1 billion annually while benefiting roughly half of all taxpayers, especially dual-earner households and retirees.

Nevertheless, a comparable system exists in Germany, where the “Ehegattensplitting” model taxes married couples jointly, often benefiting households with large income differences by allowing income splitting. However, Germany’s tax classes, especially the III/V combination, have been criticized for discouraging second earners, as the lower-income spouse faces high marginal tax rates.

As Switzerland considers a shift to individual taxation, the vote could offer a new model for European countries grappling with tax fairness and workforce participation.

Benedetta Zimone