When it comes to taxes and social security contributions, Switzerland does well compared to other countries.Image: Shutterstock
Around 23 percent of wage costs in Switzerland go to the state and social security. As a current OECD study shows, this is low in international comparison – especially for families.
April 24, 2026, 6:25 p.mApril 24, 2026, 6:44 p.m
In Switzerland, almost every employed person pays a significant portion of their income to the state. According to a current OECD study The tax burden on childless employees is 22.9 percent of total wage costs. This means that around 23 cents of every franc earned ends up with the state and social security.
Three main components are taken into account: income tax and social security contributions from employees and employers. Taken together, they result in the so-called tax and contribution burden on work. In other words, that part of the employer’s total expenditure on an employee that does not go to the employee net, but goes to the state or insurance companies as taxes or social contributions.
In international comparison with the other 37 OECD countries, Switzerland is not a high-tax country, even if the tax burden may seem high at first glance. Only in New Zealand and the less wealthy OECD members Mexico, Chile and Colombia do workers have to give up less than the Swiss.
Wage taxes are highest in Belgium. 52.5 percent of wage costs go into the state treasury. In Switzerland’s neighboring countries Germany, France, Austria and Italy, almost half of wage costs go to the state in the form of taxes and social security contributions.
The OECD average is 35.1 percent. According to the study, there has been a minimal increase compared to the previous year. The reason for this is the abolition of the climate bonus, which increased the tax burden by 0.3 percentage points.
Families are additionally relieved
In addition to the generally moderate tax burden in Switzerland, there is another important tax relief system for families. Particularly noteworthy are the child tax deductions, which vary depending on the canton, but overall offer a noticeable tax relief in most cantons. Families with multiple children can accumulate these deductions, further reducing the tax burden.
According to the OECD study, the tax burden for dual earners with children falls from 22.9 to 17.1 percent. This means that Swiss families fare third best compared to the other 37 OECD countries. Only families in Chile and Colombia have it better; the tax burden is once again greatest in Belgium, Germany and France.
Switzerland therefore offers a favorable tax environment for individuals and families with moderate social security contributions and a lower tax burden compared to many European neighbors. The cost of living (rent, health insurance, food) is among the highest in the world.