Cantons and rates: 2026 comparison and optimisation strategies (cross-border guide)

Context

In a nutshell

• Switzerland has a complex tax system that includes federal and cantonal taxes.
• The canton of Zurich has a cantonal tax of 5.3% for income from work, while Italy has an IRPEF of 23% up to 28,000 euros.
• Switzerland is not an EU/EEA member.
• AVS/AI/IPG is a 5.3% contribution for employees.

Cantons and rates: a 2026 comparison

Switzerland is known for its complex tax system, which includes federal and cantonal taxes. Each canton has its own tax rates and rules, which can vary greatly from canton to canton. For example, the canton of Zurich has a cantonal tax of 5.3% for income from work, while Italy has an IRPEF of 23% up to 28,000 euros.

Concrete examples

• An employee earning CHF 100,000 per year in Zurich will pay about CHF5,300 in cantonal taxes, while a colleague earning the same sum in Italy will pay about CHF 23,400 in IRPEF.
• An entrepreneur earning CHF 200,000 per year in Geneva will pay about CHF10,600 in cantonal taxes, while a colleague earning the same sum in Milan will pay about CHF 46,000 in IRPEF.

Comparison of practical scenarios

• An employee earning CHF 80,000 per year in Bern will pay about CHF4,200 in cantonal taxes, while a colleague earning the same sum in Rome will pay about CHF 18,400 in personal income tax.
• An entrepreneur earning CHF 150,000 per year in Lausanne will pay about CHF7,850 in cantonal taxes,

Operational details

Key facts

• Cantonal tax of 5.3% for employment income in the canton of Zurich.
• Italy has an IRPEF of 23% up to 28,000 euros.
• Switzerland is not an EU/EEA member.
• AVS/AI/IPG is a 5.3% contribution for employees.
• The AD/AC is a contribution of 1.1% with a cap 148'200.
• The LAINF is a contribution of 0.7-1.5%.
• The LPP is a contribution of 7-18% by age group from 25 years.
• The Italian income tax is 35% for incomes between 28,001 and 50,000 euros.

Comparison between Swiss cantons

Switzerland is made up of 26 cantons, each with its own taxes and rates. Here is a comparison between some of the most populous cantons and their taxes:

• Canton Zurich: 5.3% for employment income.
• Canton Geneva: 7.3% for employment income.
• Canton Bern: 4.5% for employment income.
• Canton Vaud: 6.3% for employment income.

Taxes in Italy

Italy has a much more complex tax system than Switzerland. Here is a comparison between the Italian and Swiss rates:

• Italian income tax : 23% up to 28,000 euros, 35% for income between 28,001 and 50,000 euros.
• Swiss personal income tax : 5.3% for employment income.

Optimization strategies

To minimize taxes, it is important to consider the following strategies:

• Choice of canton: choose to work in a canton with lower rates.
• Family: Consider creating a family to benefit from lower rates.
• Investments: invest in

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

Settings

• For border workers, Italy avoids double taxation with the tax credit (EC framework of 730).
• The New Frontier Agreement was signed on 23/12/2020 and is in force from 1 January 2024.
• Old frontier workers have a transitional regime 2024-2033 with an exemption of 7,500 euros, while new frontier workers have a deductible of 10,000 euros.
• The Italy-Switzerland Double Taxation Convention was signed on 9 December 1976.
• For more information, consult the tax calculator on our website.

Cantons and rates: comparison 2026

📊 Accommodation rate and taxes: Residents of Switzerland can benefit from a more favourable tax regime than those residing in Italy. For example, the Canton of Ticino applies an accommodation rate of 0.9% compared to 1.4% in the Canton of Valais. In addition, Ticino has an income tax of 1.2%, while Valais has a tax of 1.5%.

💡 Optimisation strategies: To minimise the tax impact, Swiss residents can consider buying property in Italy and renting it out to border workers. This can help reduce tax impact and benefit from increased deductibility.

⚠️ Amounts and limits: It is important to note that the amounts and limits for the deductible and exemption may vary depending on the canton and the applicable tax regime. For example, the Canton of Geneva applies a limit of 15,000 euros for the deductible, while the Canton of Vaud