Married couples: Swiss tax rules will change in 2032

Individual taxation will not immediately disrupt the tax returns of married couples. The Federal Council has set the date for its entry into force as 1 January 2032, the longest possible timeframe to allow the cantons to prepare for the transition. For the households affected, this means that joint taxation will remain the norm for several more years.

For SMEs, the self-employed and tax advisers, this timetable is by no means insignificant. The reform will affect not only how married couples declare their income, but also the trade-offs concerning salary, secondary employment, pension provision, tax planning and the reporting of information to the authorities. The issue is therefore not merely political: it has very real implications for the financial management of many entrepreneurial households.

A transition postponed as long as possible by Bern

The Federal Council has decided that individual taxation will come into force on 1 January 2032. According to information published by 20 Minutes and Econostrum, the government could have opted for an earlier date, but chose to allow the cantons the longest possible transition period.

This decision responds to a request made during the consultation process by the Conference of Cantonal Finance Directors. The forthcoming change is not limited to a simple change in the tax return form. It involves political, technical and administrative adjustments at several levels: the Confederation, the cantons and the municipalities.

The reform was approved by the Swiss people in the spring, with 54.2 per cent of the vote according to 20 Minutes, and 54.23 per cent according to Econostrum. The principle is simple in its formulation but complex to implement: each taxpayer will be taxed individually, regardless of their marital status. In other words, marriage will no longer be the criterion determining joint taxation.

Until the reform comes into force, the current system will remain in place. Married couples will therefore continue to be taxed jointly: their incomes are added together before tax is calculated. In certain situations, this mechanism can lead to a higher tax burden than that of unmarried people with comparable incomes. It is precisely this difference in treatment that the reform aims to rectify.

Two tax returns instead of one: a shift in approach

Under individual taxation, each spouse will complete their own tax return. A person’s income will no longer be automatically combined with that of their spouse to determine the tax due. In practical terms, this changes the way the couple is treated for tax purposes: the starting point is no longer a household taxed as a single unit, but two separate taxpayers.

This distinction is important for entrepreneurs. In many family-run SMEs, one spouse works in the other’s business, receives a salary, is involved in the management, holds shares or carries out self-employed work on the side. At present, these factors are often analysed at the couple level to estimate the household’s overall tax burden. In future, the precise breakdown of income and deductions between the two individuals will carry greater weight.

The reform does not mean that all married couples will necessarily pay less tax. The effect will depend on the composition of their income, how it is divided between the spouses, the canton, the applicable deductions, their family circumstances and changes to the tax scales. It is precisely for this reason that simulations will need to be carried out on a case-by-case basis, without drawing any automatic conclusions.

For a tax adviser, one of the challenges will be to explain this transition without reducing it to a mere slogan. Individual taxation is not merely a response to the issue of the ‘penalty for marriage’. It is a change in approach, which may alter the economic incentives within a couple: returning to work, increasing working hours, remuneration for a spouse working in the business, choosing between salary and dividends where the structure allows, or even pension planning.

The cantons will have to review tax scales and deductions

The deadline of 2032 is due to the scale of the work required at cantonal level. According to the sources cited, the cantons will need to review their tax scales and the social deductions they grant, and then adjust them if necessary. Some changes may even require cantonal referendums.

This is a key issue for Swiss taxpayers, as taxation is not determined solely at federal level. Cantonal and municipal tax plays a significant role in household and business planning. Two couples with similar incomes may experience different tax outcomes depending on their canton of residence, their municipality, the structure of their income and the deductions allowed.

In practice, therefore, SMEs should avoid drawing definitive conclusions too soon. A simulation carried out before the cantonal rules are amended may indicate a general trend, but it will not replace an up-to-date analysis once the tax scales and deductions are known. Self-employed individuals and executives employed by their own companies will, in particular, need to keep abreast of changes to the rules concerning deductions relating to family, professional activity and pension provision.

Tax authorities will also need to adapt their IT systems and procedures. For taxpayers, this could mean new tax return processes, a more precise allocation of certain expenses and more personalised documentation. Tax advisers will likely play an increased advisory role, particularly for couples whose incomes are intertwined with business activities.

Family-run SMEs: the allocation of income will become more transparent

In a small business, the boundary between private finances and business activities must already be clear. With individual taxation, this requirement could become even more significant for married couples. Where a spouse works in the business, their remuneration will need to be justified, documented and consistent with the work carried out. This is not a new principle, but separate taxation will make the distribution of income more transparent for tax purposes.

A couple of entrepreneurs would be well advised to consider several factors before 2032: who receives what income, which expenses are borne by whom, which deductions can be claimed by each person, and how occupational or personal pension provision fits into the overall picture. The aim is not to artificially alter a structure, but to understand the potential implications of the new tax framework.

Married employees are also affected. Within companies, HR departments and payroll managers may receive more enquiries regarding the second spouse’s working hours, payslips, payroll deductions in certain cases, or annual income planning. The employer does not replace the tax adviser, but must produce accurate and consistent documents, as these will form the basis for two separate tax returns.

For the self-employed, the issue will be even more straightforward. Taxable profit, social security contributions, any pension scheme buy-ins, ownership of business assets and the spouse’s involvement in the business will all need to be handled with great care. Well-maintained accounts will facilitate the transition. Conversely, informal arrangements within a family business may become more difficult to justify or explain.

A reform has been passed, but the debate is not entirely over

The timetable set by the Federal Council does not put an end to all political discussions. According to available sources, another federal vote is scheduled for 29 November 2026 on the Centre’s popular initiative entitled ‘Yes to fair federal taxes for married couples – To finally put an end to discrimination against marriage!’.

This initiative follows a different rationale: it provides for spouses’ incomes to continue to be aggregated for direct federal tax purposes, whilst requiring that they not be placed at a tax disadvantage. According to the Federal Council, even if this initiative were to be accepted, the law on individual taxation would remain in force. The obligation on the cantons to introduce individual taxation would only lapse if Parliament were to amend the law again and that amendment were to come into force before 2032.

For taxpayers, this overlap may seem confusing. For tax advisers, it above all calls for cautious communication: the reform has an official timetable, but its political context may still change. Any advice given at present must therefore remain conditional, particularly where it relates to long-term decisions such as the legal form of a business, the division of labour within a couple, or pension planning strategies.

The best approach is to use the coming years as a period of preparation. Affected married couples can already start gathering their data, identifying each partner’s share of income, clarifying the flow of funds between private and professional activities, and requesting simulations once the cantonal parameters are clearer. For SMEs, this is also an opportunity to improve the quality of pay slips, contracts with family members and internal accounting.

Individual taxation will not come into effect until 2032, but it already prompts us to take a fresh look at how couples’ tax affairs are managed. For SME directors and the self-employed, the challenge will not simply be to complete two tax returns: it will be to manage income, expenses, pension provision and the documentation linking family life to the business with greater precision.