Zug forecasts a surplus of 15,6 million in 2027 with the tax rate at 52%

Context

TL;DR

• Forecast 2027 surplus: CHF 15.6 million
• Revenue: CHF 446.6 million; expenditure: CHF 431.1 million
• Required tax rate: 52 percent
• Net investments: CHF 86.4 million

Key facts

• Year → 2027
• Expected surplus → CHF 15.6 million
• Required tax rate → 52 percent
• Tax revenue → CHF 331.8 million
• ZFA contribution → CHF 99.2 million

The City of Zug expects a surplus of CHF 15.6 million for 2027. The City Council is asking the Grand Municipal Council to keep the tax rate at 52 percent. The budget framework combines revenue of CHF 446.6 million with expenditure of CHF 431.1 million. The basis is solid tax revenue, accompanied by prudent planning.

The budget is based on the 2026–2032 financial strategy. Its three objectives are the long-term safeguarding of sound municipal finances, a reliable and attractive tax burden, and the strengthening of the location’s attractiveness and quality of life. The equity ratio should remain above 86 percent under the 2027 budget, compared with a long-term target of at least 70 percent.

The revenue picture

Total tax revenue is estimated at CHF 331.8 million: CHF 177.3 million from individuals, CHF 132.5 million from legal entities and CHF 22.0 million from special taxes. For individuals, the city still expects a slight increase in 2026 and 2027, despite the ninth revision package, which introduces additional deductions for health insurance premiums and expands those for pensioners in moderate financial circumstances.

For legal entities, the transitional rule introduced by the tax and AHV reform (STAF) ended at the end of 2025. Since 2025, the possibility of further depreciation for companies previously taxed under preferential arrangements has ceased. The city expects this change to be reflected positively in the 2026 annual accounts for the first time.

The plan provides for net investments of CHF 86.4 million in infrastructure, especially schools. The ZFA item amounts to CHF 99.2 million in 2027: this is the first time since 2024 that it has fallen below CHF 100 million, thanks to the improved revenue situation of other municipalities. To link the general tax figure to its own situation, calcolatore stipendio/imposte provides a separate point of reference outside the municipal budget.

The assumptions were defined against a cautious economic backdrop. For 2026, SECO expects GDP growth of around 0.9–1.0 percent, below the long-term average; the outlook includes a weak global economy, geopolitical uncertainties, more expensive energy and a strong franc. Inflation and unemployment, on the other hand, remain low.

Operational details

What it means for those who live and work in Zug

The most tangible figure for those who live and work in Zug is not just the surplus, but how the budget allocates financial leeway, equalization and services. The city continues to provide the largest share of funding among the municipalities. The ZFA contribution amounts to CHF 3'022 per resident and is 4.5 percent lower than the previous year. The reduction eases the pressure, but the burden remains high, affects the income statement and requires careful use of resources.

Where spending is concentrated

The 2027 budget cycle and the planning years through 2030 earmark CHF 125.6 million for school buildings. In 2027 alone, the Finance Department allocates CHF 58.2 million in investments; CHF 28.9 million concerns school facilities, while additional funds go to sports and recreational facilities and municipal housing. The Construction Department allocates CHF 23.4 million to transport and roads, drainage, facilities, squares and the municipal technical depot. For those who live or work in Zug, the map of priorities is therefore clear: schools, mobility, public spaces, sports, municipal housing and technical services.

The city links this cycle to the capacity and quality of schools in a rapidly growing environment. The priorities also include innovation, educational infrastructure, collaboration with higher-education institutions and sustainable housing development. For residents, these are the sections to follow to understand how the budget translates into services.

Personnel and employment

The workforce grows by 24.05 full-time-equivalent positions compared with the 2026 budget. The increase is distributed across the Presidency (+1.1), Finance (+9.7), Education (+10.4), Construction (+1.1) and Social Affairs, Environment and Safety (+1.8). The source links a significant portion to educational and care infrastructure and maintenance. In the Finance Department, this concerns properties and the management of sports and educational facilities; in Education, support appropriate to demand and optimization of the supplementary school system. On the labor market, the forecast remains cautious: employment growth in 2026 is expected to be below average and return toward the long-term trend in 2027. The plan therefore links the increase in resources to specific public functions.

To put these figures alongside daily expenses, consult costo della vita in Svizzera.

Useful planning tools

To estimate your pension strategy, use the pension planner and the pillar 3 simulator.

Useful planning tools

To estimate your pension strategy, use the pension planner and the pillar 3 simulator.

Key points

How to follow the plan

To follow the budget without confusing the proposal, planning and personal decisions, it is advisable to use a sequence of four steps.

Four checks on the budget

1. Separate the request from the decision. The tax rate is presented as a request from the Municipal Council to the Grand Municipal Council. When reading the document, this distinction must therefore be maintained: the figure is the one proposed by the Municipal Council for 2027.

2. Organize the deadlines already indicated. The end of 2025 marks the end of the STAF transitional rule for companies previously taxed preferentially. 2026 is the year in which the city expects the change to produce its first positive effect on its tax revenues. 2027 is the year of the budget under review, while the school building plan extends through 2030. This timeline separates the expected effects on revenue from the multi-year projects.

3. Read operations and investments separately. To evaluate a service, start with the relevant department: Finance for real estate, sports and educational facilities; Education for assistance and the supplementary system; Construction for roads, transport, water, squares and the municipal technical depot. To follow the long-term direction, look instead at the school plan and the sections on the environment, energy, fire brigade and urban development. These are budget categories that should be kept separate when reading.

4. Check the effect on your own budget. The municipal budget uses aggregated figures and does not replace a personal estimate. Anyone who lives or works in Zug can use a calculator to compare their income and taxes with the budget scenario; anyone preparing dichiarazione delle imposte can keep personal data separate from municipal amounts. calcolatore stipendio/imposte is used to carry out this check in practical terms.

To avoid mixing up the items, always note the reference year and whether the value belongs to the annual budget, investments or the multi-year plan. In the case of schools, separate 2027 from the horizon through 2030; in the case of ZFA, separate the total contribution from the per-resident share. This is a reading check, not a new estimate.

For the final personal check, use calcolatore stipendio/imposte.

Source: stadtzug.ch