Living in Switzerland: what the Confederation levies, what the cantons decide, and your tax residence

In Switzerland, taxes are shared between the Confederation, the cantons, and the municipalities, and each canton has its own tax law. The Confederation levies a direct federal income tax, capped at 11.5%, and does not levy a wealth tax. Cantonal and municipal taxes are added to this. Their tax rates are not presented here: this page describes the federal level, tax residency, and initial formalities.

Who collects what?

The Confederation, the 26 cantons, and approximately 2,120 municipalities each levy taxes. Each canton has its own tax law. Therefore, for two taxpayers with the same income, the tax liability can vary from one canton to another.

This page does not provide figures for any canton. Cantonal income tax and wealth tax rates are not shown.

Your Swiss tax residence

Tax residence

Income tax is generally linked to tax domicile. This is the place where a person lives with the intention of establishing permanent residence there. In the event of a dispute, the center of the taxpayer's vital interests and personal relationships is examined.

Subjection through residence

Even without a residence in Switzerland, you may be subject to federal direct tax simply by virtue of your stay. The thresholds are as follows, without any significant breaks:

These thresholds are those for direct federal tax.

For France, these thresholds tell you nothing about your French tax residence. It is governed by its own rules, which are explained on our page about leaving France.

Federal direct income tax

The federal direct tax (IFD) is levied on the income of individuals. It is not levied on wealth. Its tax schedule is capped at 11.5% of the 13% annual tax rate, which is not an effective rate: above a certain income threshold, the annual tax is uniformly 11.5% of the 13% annual tax rate. This is indicated by the Federal Tax Administration in its document "The Swiss Tax System," 2025 edition. The tax schedule for each tax period can be found on the Federal Tax Administration's website.

Cantonal and communal income taxes are added to the IFD. Their rates are not shown here.

Wealth tax: a matter for the canton

The federal wealth tax on individuals was abolished in 1959. Wealth tax exists at the cantonal level. Their rates and thresholds are not presented here.

Capital gains on private wealth

Capital gains realized from the sale of private assets are not subject to federal direct tax. This rule applies to federal tax. Capital gains from real estate are subject to cantonal taxes, the rules for which have not been discussed here. Therefore, do not infer from the above that all capital gains are tax-free in Switzerland.

The advance tax of 35 %

According to the Federal Tax Administration (document as of January 1, 2024), the Confederation levies an withholding tax of 35 % on dividends and interest paid by Swiss debtors. For a person domiciled abroad, this tax is generally final, unless a refund is provided for by a tax treaty. The refundable percentage depends on the treaty.

For the French, the amount reimbursable under the Franco-Swiss convention is not specified here; our page on the convention explains this point.

Inheritance rights

Inheritance tax is levied by the cantons. Generally, spouses, registered partners, and descendants are exempt, with some exceptions not detailed on the ch.ch website. Gifts of personal belongings and household furniture are not taxable "in most cantons." The cantonal tax office of the deceased's last residence is responsible. No tax rates or list of cantons are provided here.

A special system: taxation based on expenditure

A person may be taxed based on their expenditure, instead of total income tax, if they meet three conditions: they do not have Swiss nationality, they do not carry out gainful employment in Switzerland, and they are subject to federal direct tax for the first time or after an absence of at least ten years.

These conditions are those of the instructions of the Federal Tax Administration for the 2025 tax period. The 2026 instructions, the minimum amount retained, the list of cantons which apply the regime and its effect on the tax treaty with France are not dealt with here.

Moving in: the initial formalities

A French citizen enters Switzerland with a valid national identity card or passport. For stays exceeding three months, it is necessary to contact the cantonal migration office of the canton of residence before entry to apply for a residence permit. This information comes from the French Ministry of Foreign Affairs website, updated on September 15, 2026.

The detailed conditions of the permit, notification to the municipality, and health insurance are not covered here. These should be verified with the canton.

Numerical example (fictitious profile)

Situation. Two French citizens, fictitious profiles, spend time in Switzerland in the same year without being residents there. The first is retired and unemployed: 100 days of stay. The second is employed: 35 days.

Issue. They think they have nothing to declare because they do not live in Switzerland.

Strategy. They compare their number of days to the thresholds for direct federal tax, then have their canton's rules examined.

Result. The retiree reaches the 90-day threshold 10 days early. The second reaches the 30-day threshold 5 days early. Both are subject to federal direct tax on their stay, provided that the stay is without significant interruption. The amount due then depends on their individual circumstances and the canton.

What changes depending on your situation

• Canton of residence: tax rates, wealth tax, inheritance tax.
• Your activity: whether lucrative or not, this changes the stay threshold.
• Your nationality, which determines taxation based on expenditure.
• The location and nature of your assets: real estate or securities.
• Your tax treaty with France and the possible refund of withholding tax.

These elements are examined on a case-by-case basis. No tax result can be announced without this examination.