On 22 September 2026, the Federal Department of Finance (FDF) announced the annual indexation of direct federal tax tariffs and deductions to compensate for cold progression for the 2027 tax year. The adjustment, based on a 0.47 percent increase in the national consumer price index since the last revision, raises all taxable income thresholds and deduction amounts proportionally. This measure is mandated by Article 38 of the Federal Act on Direct Federal Tax (DBG) and aims to preserve the progressivity of the tax system in real terms. The revised tariffs will be applied to the 2027 tax period, affecting approximately 3.5 million taxpayers subject to direct federal tax. The FDF emphasized that the indexation is automatic and does not require parliamentary approval, as it is executed through a departmental ordinance. The updated tax scales have been published in the Systematic Compilation of Federal Legislation (SR 642.11) and are available on the FTA’s website.
Key Takeaways
- Progressivity Preserved in Real Terms: The 0.47 percent upward shift of all brackets means that a single earner with a taxable income of CHF 50,000 will see a marginal tax rate reduction of approximately 0.1 percentage points, while high-income earners benefit from a higher threshold before the top marginal rate of 11.5 percent applies. The overall federal tax burden for the median household is estimated to decrease by CHF 30-50 annually.
- Deduction Increases for Families: The child deduction rises from CHF 6,500 to CHF 6,531 per child, and the deduction for two-earner couples increases from CHF 2,800 to CHF 2,813. These adjustments provide targeted relief to families and dual-income households, aligning with the Federal Council’s family policy objectives.
- Seamless Transition for 2027 Filings: Cantonal tax software will incorporate the new scales by December 2026. Taxpayers filing electronically will see the updated amounts pre-populated. The FTA has also issued guidance for payroll accounting systems to ensure correct withholding tax deductions from January 2027.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement