Cantons, and why they change the number
Twenty-six cantons, twenty-six tax regimes and twenty-six family-allowance rates. What actually varies, and by how much.
Switzerland taxes at three levels: federal, cantonal and communal. The federal layer is the same everywhere. The other two are not, and the spread between the cheapest and the most expensive canton is large enough to change a hiring decision.
What varies for the employer
Only one employer contribution is cantonal: the family-allowance contribution, or Familienausgleichskasse (FAK). It runs from about 1.2% of gross salary in Zürich to about 2.9% in Valais and Jura. Everything else — AHV/IV/EO, ALV, BVG, UVG, KTG — is federal or contractual and does not move with the canton.
| Canton | FAK rate | On CHF 100’000 |
|---|---|---|
| Zürich (ZH) | 1.20% | CHF 1’200 |
| Zug (ZG) | 1.30% | CHF 1’300 |
| Bern (BE) | 1.55% | CHF 1’550 |
| Ticino (TI) | 1.95% | CHF 1’950 |
| Vaud (VD) | 2.45% | CHF 2’450 |
| Genève (GE) | 2.45% | CHF 2’450 |
| Valais (VS) | 2.90% | CHF 2’900 |
The difference between hiring in Zürich and hiring in Valais, on the same CHF 100’000 salary, is CHF 1’700 a year in employer cost. Real, but rarely decisive.
What varies for the employee
Income tax, and by a great deal more. A CHF 120’000 salary can leave several thousand francs a year more in the employee’s pocket in Zug than in Geneva. That is the employee’s concern, not the employer’s — but it is why candidates negotiate on net, and why a canton-blind salary band produces uneven offers.
Quellensteuer
Quellensteuer is tax withheld at source. It applies to foreign nationals resident in Switzerland who do not hold a C permit, and to cross-border commuters. The employer withholds it from the salary and remits it to the canton monthly.
Swiss nationals and C-permit holders are not subject to it. They file an ordinary tax return and pay the canton directly. Nothing is withheld from their payslip beyond social contributions.
The Quellensteuer rate depends on the canton, the gross salary, marital status and the number of children. Each canton publishes a tariff table with codes such as A0, B2 or C1. Anstell applies the correct code and files monthly.
Which canton applies
The canton of residence, not the canton where the work happens. Someone living in Zug and working for a Zürich client is taxed in Zug and has Zug’s FAK rate applied. For cross-border commuters, the canton where they work.