Switzerland’s marriage tax debate spans four decades of court rulings

A dispute over how married couples should be taxed has occupied Swiss courts and politicians for more than 40 years, SRF reports. The debate has produced court rulings, failed initiatives and a shift to individual taxation, due to take effect by 2032 at the latest.

1984: Federal court rules on unequal treatment

The Hegetschweiler couple challenged changes to Zurich’s tax law that meant married couples with two earners paid more tax than unmarried couples living together on exactly the same incomes. The Federal Supreme Court ruled in their favour, saying it violated equality principles to treat people worse solely because they were married when their financial circumstances were the same.

The ruling forced cantons to revise their tax laws. They introduced different approaches, including partial or full income splitting, tax rates for couples with two earners and large deductions for second earners.

1994: Court sets a margin

Ten years later, the court clarified its earlier ruling. It said the constitutional principle was not necessarily breached if married couples with children paid up to 10 per cent more tax than unmarried couples with children. The margin became a benchmark for the federal government and cantons.

Political proposals and a failed initiative

In 2004, voters rejected a tax package intended to ease the marriage penalty. In 2008, the Federal Council introduced transitional tax measures, including a deduction for second earners.

The Christian Democratic People’s Party, now known as The Centre, launched its “For marriage and family – against the marriage penalty” initiative in 2012. Voters rejected it in 2016. Critics had objected to wording that defined marriage as a union between a man and a woman.

In 2018, it emerged that the official voting booklet had said 80,000 couples with two earners were affected, rather than about 454,000. The Federal Supreme Court ruled the 2016 nationwide vote invalid, finding that voters had been misled by incorrect figures from the authorities. The party withdrew the initiative and launched a new one.

Individual taxation approved in 2026

Parliament instructed the Federal Council in 2020 to prepare a proposal for individual taxation. After an initiative for tax fairness was submitted, with the FDP Women as its driving force and support from across party lines, the government presented a draft law on individual taxation as an indirect counterproposal.

Voters approved the law on 8 March 2026. Under the change, everyone, including married couples, is to be taxed individually by 2032 at the latest.

The Centre submitted a new initiative in 2024, titled “Yes to fair federal taxes for married couples too – end discrimination against marriage!” Voters are due to decide on it on 29 November.