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Switzerland has voted to introduce individual taxation, backing one of the biggest changes to the country’s tax system in decades and scrapping rules that critics say penalise married couples where both partners work.
The reform will replace Switzerland’s longstanding system of joint taxation, under which spouses must combine their income and file a single return. In a progressive tax system, that structure often pushed married couples into higher tax brackets than unmarried partners with similar earnings — a distortion widely known as the wedding or “marriage penalty”.
Nearly 54 per cent of voters were in favour of the change, according to preliminary official estimates on Sunday.
The reform is expected to come into force gradually, with the new system due to be implemented by 2032 at the latest, giving the federal government and Switzerland’s 26 cantons time to adapt their tax systems.
Government estimates suggest the reform could add 60,000 people to the workforce and lift GDP by about 1 per cent, even though the change would reduce tax revenue.
Supporters have long argued the existing framework discouraged labour participation by second earners — typically women — because additional income was taxed at a higher marginal rate once combined with a spouse’s salary.
The referendum reflects Switzerland’s traditionally conservative family model, particularly outside cities such as Zurich and Geneva.
Women only gained the federal vote in 1971 and many still work part-time despite high overall employment. Just 60 per cent of Swiss women work full-time, compared with 78 per cent in the OECD, according to PwC data from last year.
The issue has also produced unusual workarounds. Many couples have held wedding ceremonies without legally registering their marriage, while others have even considered divorcing during retirement for tax reasons, according to advisers and tax specialists.
The issue has been debated in Switzerland for decades, with conservative parties, family groups and some cantonal governments pushing back against changes they argued could penalise single-income households and weaken the traditional family model.
Opponents have also warned the change would add bureaucracy by forcing married couples to file separate returns and could burden tax authorities with additional filings.
Government estimates indicate that roughly half of taxpayers would benefit from the reforms, while about a third would see little difference and a minority would pay more.
Sunday’s vote was one of four national issues put to Swiss voters under the country’s system of direct democracy. Another closely watched proposal sought to enshrine the availability of physical cash in the constitution.
The vote comes amid growing global debate about the future of physical money, with Switzerland maintaining its attachment to banknotes even as digital payments rise.
Estimates on Sunday indicated strong support for a government plan to write a guarantee into Switzerland’s federal constitution that physical cash must continue to be available, with more than 70 per cent voting in favour of safeguarding access to banknotes.