Vaud voters approve 12% income and wealth tax cut

Voters in the Swiss canton of Vaud have approved a 12% reduction in income and wealth taxes, with 53.1% supporting the initiative. Despite the reduction, Vaud is expected to maintain a tax burden above the national average. The canton remains among the most heavily taxed regions in Switzerland, alongside Geneva and Basel-City, particularly for middle-income, upper-middle-income, and wealthy taxpayers from 2027 onwards.

The tax cut follows a broader trend in western Switzerland, where French-speaking cantons have been looking to reduce tax burdens. For example, Geneva introduced an average income tax cut of 8% in 2025. However, fiscal pressures remain a concern; in Geneva, the finance minister has noted that all options, including potential tax increases, remain on the table due to difficult fiscal positions.

Looking ahead, political attention in Vaud is shifting toward the tax bracket system established in 1987. This framework requires revision as Switzerland transitions toward individual taxation for married couples, a reform approved by Swiss voters in March that cantons must implement by January 1, 2032.