Switzerland is a unique case in terms of taxation: each canton freely sets its own tax rates, creating intercantonal tax competition that directly benefits companies. The effective corporate income tax rate thus varies from less than 12% in the most attractive cantons to nearly 20% in certain municipalities of the most highly taxed cantons.
This page presents a complete comparison of tax rates across all 26 Swiss cantons for the 2026 tax year, with a detailed analysis of the French-speaking cantons where AX-Fiduciaire supports its clients.
Effective tax rate table by canton (2026)
The table below presents the effective corporate income tax rates for capital companies (LLC, corporation), including direct federal tax (8.5%), cantonal tax and municipal tax of each canton's capital city.
| Canton | Capital city | Total effective rate | Ranking |
|---|---|---|---|
| Zug (ZG) | Zug | 11.9% | 1 |
| Nidwalden (NW) | Stans | 12.7% | 2 |
| Lucerne (LU) | Lucerne | 12.3% | 3 |
| Appenzell I.Rh. (AI) | Appenzell | 13.0% | 4 |
| Obwalden (OW) | Sarnen | 12.8% | 5 |
| Glarus (GL) | Glarus | 13.3% | 6 |
| Neuchatel (NE) | Neuchatel | 13.6% | 7 |
| Fribourg (FR) | Fribourg | 13.7% | 8 |
| Thurgau (TG) | Frauenfeld | 13.4% | 9 |
| Schaffhausen (SH) | Schaffhausen | 13.8% | 10 |
| Vaud (VD) | Lausanne | 13.9% | 11 |
| Graubunden (GR) | Chur | 14.0% | 12 |
| Schwyz (SZ) | Schwyz | 14.1% | 13 |
| Appenzell A.Rh. (AR) | Herisau | 13.9% | 14 |
| Uri (UR) | Altdorf | 14.2% | 15 |
| St. Gallen (SG) | St. Gallen | 14.5% | 16 |
| Valais (VS) | Sion | 14.6% | 17 |
| Geneva (GE) | Geneva | 14.7% | 18 |
| Ticino (TI) | Bellinzona | 15.1% | 19 |
| Aargau (AG) | Aarau | 15.1% | 20 |
| Jura (JU) | Delemont | 15.4% | 21 |
| Basel-Stadt (BS) | Basel | 13.4% | 6 |
| Basel-Landschaft (BL) | Liestal | 16.0% | 23 |
| Solothurn (SO) | Solothurn | 16.3% | 24 |
| Bern (BE) | Bern | 16.4% | 25 |
| Zurich (ZH) | Zurich | 19.7% | 26 |
Sources: Cantonal tax administrations, calculations at the capital city for a capital company without special status. Effective rates include federal, cantonal and municipal tax. Indicative rates that may vary slightly by municipality.
Detailed analysis of French-speaking cantons
For companies based in French-speaking Switzerland, the comparison of francophone cantons is particularly relevant. Here is a detailed analysis of each canton.
Geneva (GE): 14.7%
Geneva is the economic centre of French-speaking Switzerland and a major international hub. Despite a corporate tax rate slightly higher than its French-speaking neighbours, the canton attracts numerous companies thanks to:
- A rich international ecosystem (international organisations, multinationals, NGOs)
- A qualified and multilingual labour pool
- A dense transport network (airport, SBB station, motorways)
- A sophisticated legal and regulatory framework
- The ability to offset profit tax against capital tax
Municipal additional centimes vary from 39 (Cologny, Genthod) to 51 (city of Geneva), which can represent a difference in effective rate of approximately 1.5 percentage points depending on the municipality chosen. Setting up an LLC in Geneva remains a strategic choice for many entrepreneurs.
Vaud (VD): 13.9%
The canton of Vaud significantly reduced its tax rate under the TRAF, dropping from an effective rate of over 21% to 13.9%. This competitive rate, combined with the dynamic economic ecosystem of the Lake Geneva arc (EPFL, tech, biotech, startups), makes it an attractive canton for innovative companies.
Vaud's fiscal strengths:
- Effective rate among the lowest in French-speaking Switzerland
- Generous cantonal patent box for patent income
- Attractive additional R&D deduction
- Dynamic startup ecosystem with cantonal support
Valais (VS): 14.6%
Valais offers a moderately competitive tax environment with an effective rate of 14.6%. The canton stands out for a cost of living and commercial premises significantly lower than Geneva or Vaud, which partly compensates for the slightly higher tax rate. The main cities (Sion, Sierre, Martigny) offer attractive conditions for SMEs and self-employed individuals.
Fribourg (FR): 13.7%
Fribourg is a bilingual canton (French/German) with a very competitive tax rate of 13.7%. Its central position between Bern, Lausanne and Geneva makes it a strategic choice for companies seeking easy access to both French and German-speaking Switzerland. The canton is particularly attractive for industrial SMEs and technology companies, with well-served business zones and moderate real estate costs.
Neuchatel (NE): 13.6%
Neuchatel has the lowest tax rate in French-speaking Switzerland at 13.6%. The canton was a pioneer in corporate tax reform and offers a favourable environment for the watchmaking industry, microtechnology and innovative companies. The canton's industrial tradition translates into a qualified technical workforce and adapted infrastructure.
Jura (JU): 15.4%
Jura has the highest rate in French-speaking Switzerland at 15.4%, but compensates with real estate and labour costs among the lowest in the Jura arc. The canton offers establishment support and industrial land at competitive prices, which can make installation advantageous despite the higher tax rate.
Tax burden comparison: numerical simulation
To illustrate the impact of canton choice, here is a tax burden simulation for an LLC with taxable profit of CHF 300,000 and equity of CHF 200,000:
| Canton (capital city) | Profit tax | Capital tax | Total | Difference vs. Geneva |
|---|---|---|---|---|
| Zug | CHF 35,700 | CHF 80 | CHF 35,780 | - CHF 8,620 |
| Neuchatel | CHF 40,800 | CHF 200 | CHF 41,000 | - CHF 3,400 |
| Fribourg | CHF 41,100 | CHF 320 | CHF 41,420 | - CHF 2,980 |
| Vaud | CHF 41,700 | CHF 600 | CHF 42,300 | - CHF 2,100 |
| Valais | CHF 43,800 | CHF 400 | CHF 44,200 | - CHF 200 |
| Geneva | CHF 44,100 | CHF 300* | CHF 44,400 | Reference |
| Jura | CHF 46,200 | CHF 360 | CHF 46,560 | + CHF 2,160 |
| Zurich | CHF 59,100 | CHF 500 | CHF 59,600 | + CHF 15,200 |
* In Geneva, profit tax can be offset against capital tax, reducing or eliminating the latter for profitable companies. Indicative simulation; actual amounts depend on numerous factors.
Beyond the rate: other factors to consider
The corporate income tax rate is just one element among others in choosing a location. Here are the other fiscal and economic factors to consider:
Capital tax
Capital tax rates vary significantly between cantons. For companies with substantial equity but modest profits, capital tax can represent a proportionally high burden. Some cantons (Geneva, Fribourg, Basel-Stadt) allow profit tax offset, which benefits profitable companies.
TRAF instruments
Cantons have not all implemented TRAF instruments in the same way:
- Patent box: available in all cantons, but with different reduction rates (up to 90% at the cantonal level)
- R&D deduction: the additional deduction rate varies (50% of personnel costs in general, some cantons offer more)
- Overall limitation: the maximum reduction is 70% at the cantonal level, but some cantons apply a stricter limitation
Dividend taxation
The overall tax burden must include dividend taxation at the shareholder level. The partial taxation rate of dividends varies by canton (50% to 70% of the dividend is taxed). A canton with a low profit tax rate but high dividend taxation may prove less advantageous than it appears for a shareholder-director.
Economic factors
- Office space costs: commercial rent varies from CHF 150/m2/year in Valais or Jura to over CHF 600/m2/year in Geneva or Zurich
- Labour availability: cantons with a large labour pool (Geneva, Vaud, Zurich) facilitate recruitment
- Infrastructure: motorway access, railway station, airport, fibre optics
- Cantonal support: some cantons offer subsidies, temporary exemptions or facilities for newly established companies
How AX-Fiduciaire helps you choose
The choice of canton of domicile is a strategic decision that deserves thorough analysis. At AX-Fiduciaire, we offer:
- Comparative tax simulation: calculation of the tax burden in several cantons and municipalities based on your actual situation
- Comprehensive analysis: consideration of profit tax, capital tax, VAT, dividend taxation and social charges
- Formation support: if you opt for a company formation, we manage all the administrative procedures
- Ongoing tax monitoring: tax returns, tax optimisation and regulatory monitoring throughout the year
Good to know: AX-Fiduciaire supports companies throughout French-speaking Switzerland, with particular expertise in Geneva and the canton of Vaud. Our accounting packages include the annual tax return and ongoing tax advice. See our pricing.
Are you planning to set up your company and want to know which canton is most advantageous for your activity? Request a free personalised analysis and our experts will contact you within 24 hours.