Taxes Nidwalden government wants to grant higher tax deductions from 2026

The canton of Nidwalden is planning a tax reform. The various tax deductions are to be financed by additional revenue from the OECD minimum tax, the State Chancellery announced on Thursday.

The 2026 tax law revision includes plans to increase the child deduction for families from CHF 6,000 to CHF 8,000. In addition, the maximum deduction for third-party childcare costs is to rise from CHF 8,100 to CHF 25,800. According to the press release, higher deductions are also planned for children's own care and for education outside the canton if the child is living away from home.

With the significantly higher deductions, Nidwalden wants to ease the tax burden on families, according to the press release. In addition, the business location is to be strengthened. This includes the promotion of ecological sustainability measures for Nidwalden companies.

The government expects the tax law revision to reduce revenue by CHF 3 million. This would be offset by additional revenue from the OECD minimum tax. The government estimates this additional revenue at CHF 5 million.

The government council is submitting the tax reform for consultation. According to the press release, the cantonal parliament is expected to discuss the government's plans in spring 2025. The revised tax law is set to come into force on January 1, 2026.

SDA