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Germany vs Switzerland
Tax Rate Comparison

Enter your income below for a personal tax estimate, then scroll down for full rate breakdowns.

πŸ‡©πŸ‡ͺ Germany
vs
πŸ‡¨πŸ‡­ Switzerland
Tax year:
Tax Year 2026

πŸ’° Personal Income Tax Calculator

Enter your income to see your estimated annual tax liability in each country β€” side by side.

Enter your annual income above to see your personal tax comparison β†’
Individual Income Tax (Top Marginal Rate)
14–45%
Basic allowance ~€12,336; bracket creep relief
No change
Top Income Tax Rate
0–11.5%
Stable; cantonal competition ongoing
No change
VAT / GST / Sales Tax
7–19%
Standard 19% unchanged
No change
VAT / GST / Sales Tax
2.6–8.1%
No further increases planned
No change
Corporate Tax Rate
~29%
Coalition discussions on lowering to 25% ongoing
β–Ό -0.5pp vs 2025
Corporate Tax Rate
~14–26%
Pillar Two supplementary tax active; cantons adjusting
No change
Capital Gains Tax
25%
Investment income reform proposals under review
No change
Capital Gains Tax
0%
No capital gains tax for private individuals
No change
Social Security & Payroll
~41.5%
Health insurance rising; pension base up
β–² +0.5pp vs 2025
Social Security / Payroll
~10.9%
BVG/LPP reform (expanded occupational pension) active
No change
State, Regional & Local Taxes

πŸ‡©πŸ‡ͺ Germany β€” Trade Tax (Gewerbesteuer) & Church Tax

Germany's 16 BundeslΓ€nder apply federal income tax rates uniformly β€” no state income tax variation. Municipalities levy Gewerbesteuer (trade tax) on business profits at ~7–17% effective. Church tax (Kirchensteuer) of 8–9% of income tax applies to registered members. The solidarity surcharge (Soli) now only applies to the top ~10% of earners.

πŸ‡¨πŸ‡­ Switzerland β€” Cantonal & Communal Taxes

Switzerland's 26 cantons and ~2,200 communes independently set income and corporate tax rates. Zug (~12% combined top) and Nidwalden are among the lowest globally; Geneva and Vaud reach ~45% combined. Wealth tax is levied by cantons. Pillar Two supplementary tax is active for large MNCs. Inheritance and gift taxes are cantonal.

⚠️ Disclaimer: Rates shown are standard top/headline rates for informational purposes. Actual tax liability depends on income level, residency, deductions, and tax treaties. 2025–2026 data reflects announced or enacted rates and may be subject to change. Not financial or legal advice.

Germany vs Switzerland: Key Tax Differences (2026)

πŸ’° Income Tax: πŸ‡©πŸ‡ͺ Germany has a higher top income tax rate (14–45% vs 0–11.5%). πŸ‡¨πŸ‡­ Switzerland is more favourable for high earners.

πŸ›’ VAT/Sales Tax: Germany has a higher consumption tax (7–19% vs 2.6–8.1%).

🏒 Corporate Tax: πŸ‡¨πŸ‡­ Switzerland offers a lower corporate rate (26% vs 29%), which can influence business location decisions.

πŸ“ˆ Capital Gains: πŸ‡¨πŸ‡­ Switzerland taxes investment gains at a lower rate (0% vs 25%), benefiting investors.

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