A recent political shift following cantonal elections in March 2022 has led to lower personal taxes in the canton starting in 2023, reported 20 Minutes.
The canton of Vaud has one of Switzerland’s highest personal tax burdens. In 2018, a couple with two children earning CHF 150,000 paid more than three times as much tax in Vaud as the same couple in the canton of Zug. The only cantons where taxes would have cost them more were Neuchatel, Jura, Solothurn, Bern and Appenzell-Ausserhoden – further cantonal personal tax comparisons can be found here.
Some political parties in Vaud, such as the PLR/FDP, the Liberal Greens and UDC/SVP have been pushing for tax cuts for many years. After the last round of cantonal elections in March 2022 they gained the parliamentary majority required (83 of 150 seats) to make their wishes a reality. The canton’s parliament voted 72 in favour, 53 against, with 7 abstentions on the motion.
From 2023 the tax coefficient in Vaud will fall from 155 to 150 points. The tax coefficient uplifts the basic level of taxation so a lower one means less tax overall.
The tax cut was vigorously opposed by parties on the left. Socialist Julien Eggenberger described to move as inappropriate. He said it would reduce the canton’s income by CHF 160 million a year and only benefit individuals who are well off.
Philippe Jobin of the UDC/SVP defended the cut and pointed out that the canton generated a surplus of CHF 668 million in 2021. He also said that a couple with two children earning CHF 150,000 currently pays 10.96% tax in Vaud compared to 5.89% in Zurich – these figures do not include social security taxes which are around 15% of gross salaries.
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