Equalisation payments: Ticino disappointed as Bern blocks changes until 2030

Context

TL;DR

• Switzerland won't amend financial equalisation until 2030.
• Ticino seeks fairer treatment for cross-border workers.
• Ticino to receive 106 million francs in 2026, but it's insufficient.

Key facts

• Decision: No amendment to financial equalisation until 2030.
• Ticino's Request: Greater weight for cross-border workers' income.
• Federal Council: Rejected Ticino's amendment proposal.
• Ticino's Funding: 106 million francs in 2026, up from 2024.
• Next Milestone: Report on equalisation effectiveness in 2030.
• Ticino's Reaction: Will take further steps to protect cantonal interests.
• Impact on Workers: No immediate changes, but risks exacerbating disparities.
• Cross-border Issue: Ticino's economy heavily integrated with Italy.

Berne will not amend the intercantonal financial equalisation ordinance at least until 2030. The Ticino cantonal government has responded with an official statement, describing the decision as a clear lack of recognition for the canton’s specificities, which will continue to be unfairly penalised compared to the rest of Switzerland.

This decision clearly fails to acknowledge the reality of our canton, which will continue to be unjustly disadvantaged compared to the rest of Switzerland, the statement released by the cantonal government on Tuesday reads.

Ticino’s request: greater weight for cross-border workers

At the heart of the controversy was the weighting of cross-border workers’ income in calculating cantons’ resource potential. Ticino had sought a change to correct a historical disparity: in border cantons, where the labour market is characterised by a high number of cross-border workers and lower-than-national-median wages, the current equalisation mechanism is inequitable.

Ticino’s demands are rooted in a well-defined historical context marked by structural challenges linked to its border position, and are supported by several scientific studies, the cantonal government writes.

The proposed amendment would have allowed the system to consider the specificities of border cantons in a less inequitable manner.

The proposed mechanism would have enabled the system to address the specificities of border cantons in a less inequitable way, the cantonal government maintains. The proposal was also backed by the majority of cantons involved in the consultation.

Immediate reactions: Bern rejects, Ticino persists

The Federal Council has confirmed its outright rejection. Ticino, which in recent years has pursued this battle in coordination with the Ticino delegation in the federal chambers and other cantons, does not hide its disappointment. The government in Bellinzona describes the decision as one that undermines national cohesion and the Swiss spirit of solidarity, stressing that efforts to find a solution will not stop here.

📊 The next key milestone will be the report on the effectiveness of financial equalisation, scheduled for 2030. In the meantime, the Bellinzona government has already announced further steps to protect cantonal interests:

Given the political insensitivity demonstrated by the Federal Council with today’s decision, the cantonal government will take further steps to safeguard the interests of the Canton of Ticino, the concluding note reads. Concrete measures will be communicated in the coming weeks.

The numbers behind equalisation: Ticino awaiting 106 million in 2026

Despite the rejection of the amendment request, the Federal Council has confirmed that Ticino will receive 106 million francs in 2026, an increase of 19 million compared to 2024. However, according to the cantonal government, this amount remains insufficient to cover structural disparities. The Graubünden, by contrast, will see a reduction of nearly 9 million.

A timeline of the battle

• 7 April 2026: The Federal Council announces its rejection of the ordinance amendment.
• March–April 2026: The Ticino cantonal government drafts its official response and announces further actions.
• 2030: Publication of the report on the effectiveness of equalisation, which could reopen the debate.

Where decisions are made: offices and locations involved

• Bern: Seat of the Federal Council and the State Secretariat for Financial Matters (FDE).
• Bellinzona: Palazzo delle Orsoline, seat of the Ticino cantonal government.
• Lugano/Mendrisio/Chiasso: Cantonal offices and Ticino delegations supporting the demands.

Operational details

Before vs after: what changes for cross-border workers

The decision by Bern will block at least until 2030 any changes to the equalisation system that take account of the peculiarities of border cantons. For cross-border workers employed in Ticino, the news does not bring any immediate changes to their pay slips, but it risks exacerbating the structural disparities that already weigh heavily on the canton.

The salary and contribution issue

Ticino argues that the current mechanism penalises cantons with a high number of cross-border workers because average salaries are lower than the national median. This is also reflected in social security and tax contributions, which are included in the equalisation calculation. Without a modification, the canton will continue to receive fewer resources than it needs to cover the costs of public services (schools, healthcare, transport) linked to the presence of workers residing in Italy.

Possible scenarios: what happens if Ticino gets nothing in 2030?

If, in 2030, the federal government confirms the current system, the canton will face two options:

1. Increase local taxes to fund services, with the risk of pushing residents and businesses further towards the Italian border. 2. Cut services at the expense of quality of life, which is already under pressure due to the high cost of living and demographic pressure.

Comparison with other border cantons

Ticino is not the only canton complaining about disparities in equalisation. The Graubünden will also see federal contributions reduced in 2026, while other Alpine cantons (such as Uri or Schwyz) benefit from different treatment. The question the government in Bellinzona is asking is: why should a canton with an economy so integrated with Italy be penalised compared to one with fewer cross-border workers?

The role of Ticino politicians

The Ticino delegation in the federal chambers has worked in synergy with the cantonal government to push the request forward. Now, faced with the refusal, they will assess political pressure actions and possible legislative initiatives. However, without broader support from the Confederation, the chances of success remain uncertain.

Impact on the most affected Ticino municipalities

The municipalities most exposed to the issue of cross-border workers are those near border crossings:

• Chiasso and Mendrisio: High number of cross-border workers and pressure on public services.
• Lugano: Economic hub of the canton, with a mix of residents and cross-border workers.
• Locarno and Bellinzona: Home to major companies and public offices, but with average salaries below the Swiss average.

📊 Comparative table: equalisation before vs after the 2026 decision

What the experts say

According to studies cited by the Ticino government, the current equalisation system does not take account of the additional expenses incurred by border cantons for services such as healthcare, transport and education, which must also accommodate workers living abroad. Without an adjustment, the gap between Ticino and the rest of Switzerland risks widening.

Next steps: what to do now

Cross-border workers and Ticino residents can:

• Monitor updates from the cantonal government in the coming weeks, when the next steps will be announced.
• Take part in consultations organised by Ticino parties in the federal chambers.
• Consider alternative solutions to optimise their finances, such as joining supplementary pension funds or opening bank accounts in Switzerland to benefit from more favourable interest rates.

Useful tools for your case

To verify your within/over 20 km tax scenario, use the net salary calculator and the tax return guide.

Key points

Step 1: Stay informed about the State Council’s upcoming decisions

The Ticino government will announce in the coming weeks the measures it intends to implement to protect the Canton’s interests. To stay updated, we recommend:

• Checking the official Ticino State Council website (www.ti.ch).
• Subscribing to the Canton’s newsletter or following its institutional social media accounts (e.g., @TicinoCantonale on Twitter/X).
• Attending public assemblies organized by Ticino municipalities or political parties.

Step 2: Review your tax situation

Even if the decision from Bern does not immediately affect your paycheck, it is useful to assess your tax position to prepare for potential local tax increases. Here’s how: 1. Calculate your taxable income with the help of an expert in Italo-Swiss taxation. 2. Compare tax rates between Ticino and Italy, especially if you work in Como or Varese. Ticino applies federal, cantonal, and municipal taxes, while Italy adds IRPEF. 3. Consider opening a Swiss bank account to benefit from higher interest rates and more efficient financial management.

Step 3: Explore pension and savings solutions

With uncertainty surrounding equalization payments, it is advisable to rely on supplementary savings tools:

• Pillar 3a: Voluntary contributions to Swiss pension funds, offering immediate tax benefits.
• Life insurance: Policies that guarantee a capital sum in case of premature death or disability.
• Real estate investments: Purchasing a second home in Ticino to reduce long-term living costs.

📊 Useful tool: Calculate your potential savings with the cross-border salary and tax calculator.

Step 4: Get involved in political initiatives

Ticino relies on cross-party support to advance its requests. Here’s how you can contribute:

• Sign petitions organized by cross-border associations or Ticino political parties.
• Contact your representatives in the Federal Chambers (available on www.parlamento.ch).
• Participate in demonstrations or public meetings organized by groups like the Independent Workers’ Union of Ticino (SILT) or the Ticino Chamber of Commerce.

Step 5: Consider alternative housing or work options

If tax pressure or the quality of public services were to worsen, some families might consider:

• Moving to nearby Italian municipalities (e.g., Como, Varese) to reduce costs while maintaining employment in Ticino.
• Evaluating remote work to reduce reliance on Ticino’s services.
• Exploring job opportunities in cantons with more favorable equalization treatment (e.g., Zurich or Vaud).

Key deadlines to note

• By June 2026: Meeting between the Ticino delegation and Karin Keller-Sutter (Federal Councillor) to discuss next steps.
• 2030: Publication of the federal report on the effectiveness of equalization, which could reopen discussions.

Frequently asked questions: what to do now

What happens if Ticino does not secure any changes by 2030? If the 2030 federal report does not introduce modifications, the Ticino government will need to consider raising local taxes or cutting public services. For cross-border workers, this could mean higher indirect costs (e.g., healthcare, education) or reduced service quality.

What can I do as an individual citizen? Yes. You can:

• Sign petitions supporting Ticino’s requests.
• Contact your representatives in the Federal Chambers to demand action.
• Optimize your finances with tools like Pillar 3a or Swiss bank accounts to mitigate the impact of potential tax increases.

Does the Bern decision affect my 2026 taxes? No, there are no immediate changes to taxation. The decision concerns only financial equalization between cantons, not local or federal tax rates. However, if the Ticino government raises taxes to compensate for reduced federal funds, you may see an impact between 2027 and 2030.

What if I work in Como but live in Ticino? Your tax position depends on double residency. In Switzerland, taxes are calculated on worldwide income, but you may benefit from deductions for expenses incurred in Italy (e.g., housing or children). Consult an Italo-Swiss tax expert to optimize your tax return.

💡 Tip: If you are a cross-border worker, consider opening a bank account in Ticino to manage your salary and savings more efficiently. Use the currency exchange calculator to estimate Euro-to-Swiss Franc conversion costs.

Source: rsi.ch