Cantonal finances SZ Schwyz cantonal government plans tax cut worth 70 million francs

In the canton of Schwyz, the population is to pay a total of CHF 70 million less in taxes from 2026. The cantonal government submitted a revision of the tax law for consultation on Thursday.

Natural persons are to receive tax relief because they are currently faced with rising prices and the cost of living, explained the cantonal government in its consultation message published on Thursday.

The cantonal government wants to take account of the general rise in prices by offsetting the "cold progression" in income tax. To this end, various deductions are to be increased, such as child deductions or deductions for the costs of childcare or further education, as well as the degressive social deduction or the insurance and savings capital deduction.

Furthermore, a reduction in the maximum tax rate for the taxation of capital benefits should improve the tax attractiveness of the canton for high capital benefits, the cantonal government further explained.

The tax law revision is likely to lead to a loss of revenue of around CHF 30 million for the canton. The districts and municipalities would have to forgo a total of CHF 37 million, while the two cantonal churches would have to forgo around CHF 3 million. Overall, the financial impact on the municipalities appears to be quite acceptable, also in view of the generally good financial situation, explained the cantonal government.

SDA