Ending the marriage penalty in Switzerland - or not?

I couldn't help but wonder: Is getting married not punishment enough...?

It probably depends on your partner. In Switzerland, however, there is another reason to think twice about a wedding: Married couples are taxed jointly. It often happens that double earners pay higher taxes after the wedding. That is what we call the ‘marriage penalty’. Let's find out whether it will soon be abolished and if marriage is still worthwhile (from a tax perspective) until then.

What is the marriage penalty in Switzerland?

"What's yours is mine" - this also applies in marriage when it comes to taxes. As soon as two people are married, they file their tax returns jointly. Because in the Swiss tax system everyone is taxed according to their economic capacity, this can mean a higher or lower tax burden for married couples. 

It is important to note that the marriage penalty does not affect everyone equally: couples with unequal incomes or a single breadwinner can even save money by filing a joint tax return. However, if both partners earn roughly the same, they pay more. Almost as if, by principle, a marriage should not consist of two equal partners - who would have thought?

Calculating the marriage penalty: An example

The marriage penalty is best understood using a fictional, highly simplified example. Let's assume that a couple earns CHF 100 each and has to pay CHF 20 each in tax before the marriage. Then their income is taxed at a higher rate after the marriage because together they appear to be economically more powerful with a total of CHF 200. So in the future they will owe CHF 50 collectively.

However, if only one of the two has an income, the tax burden after the wedding is reduced to CHF 15 instead of CHF 20 for a total household income of CHF 100. This means that the Swiss tax system clearly favours married couples where both partners do not contribute equally to the household income.

Of course, the calculation is much more complicated in reality. We will be happy to find out for you wether and to what extent the marriage penalty affects you. Together we can calculate your marriage penalty and reduce the tax burden as much as possible. At least from a tax perspective, you will then know whether saying "I do" is a good idea.

Criticism of the joint tax return

If the Runaway Bride had lived in Switzerland, she would probably have had tax reasons for fleeing the altar. The marriage penalty is, to put it kindly, no longer up-to-date. It dates back to a period when almost only married couples lived together and most of the time only one of them had an income. 

Back then, it made sense to tax married couples differently from unmarried couples. After all, a joint household saves costs because you can share the rent and other fixed expenses. Today, however, many people live together without getting married first: whether as a unmarried couple (“Konkubinatspaar”) or simply as roommates. 

At the same time, today it is much less common for the woman to stay at home and only the man to earn an income. As a result, there are many married couples with a double income who pay the marriage penalty. Finally, a bureaucratic fact shows just how out of date the Swiss tax systemis: in almost all cantons, tax returns are filed under the husband's AHV number. So a woman can keep her own surname, but she has to take the man's tax number - in 2025... 

The long road to ending the marriage penalty

It's almost as if the Swiss tax system can't get over the marriage penalty. There is a lot of discussion and thinking about solutions, but a divorce is known to take a while: since 1984, there have been repeated attempts to abolish the marriage penalty. Conservative parties in particular would prefer to maintain the old system. 

In 2025, we finally are a big step closer to abolishing the marriage penalty. There is supposed to be individual taxation implemented instead. This would mean that both partners would submit their tax returns separately and be taxed individually. However, there is still a heated debate about how exactly this should work. The divorce battle is therefore in full swing. 

When will the marriage penalty be abolished?

Throwing the marriage penalty out is likely to take some more time. In the summer of 2025, details are to be clarified, and the new law is to be passed. However, we can assume that conservative parties will take a referendum against it. There will probably be a referendum in spring 2026. 

If the people vote in favour, the 26 cantons will have to amend their tax laws. The amendments - and thus the abolition of the marriage penalty - would therefore come into force in 2027 at the earliest. 

From tax issues back to romance

For the time being, tax returns remain an unromantic topic that married couples have to tackle together. And perhaps that is exactly what is romantic after all. Besides, not everything argues against marriage from a tax perspective. As a small consolation, married couples have an advantage when it comes to inheritance law, for example. To ensure that taxes don't become the first dispute in the new marital bliss, we at taxum AG are happy to help with the tax return. Then you can finally concentrate on the good parts of marriage again. Because yes, of course they exist - just as Switzerland has its good sides too! 

And just like that, a wedding despite the marriage penalty is somehow also a tax-related proof of love...