01 December 2025

Amendment to the Zug Tax Act as of January 1, 2026

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  • Tax
  • Employment / Immigration
  • Steuern / Abgaben
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On November 30, 2025, the voters of Zug approved the amendment to the Zug Tax Act of August 28, 2025. It will come into force on January 1, 2026. Below, we provide information about the key elements.

  • Dr. Samuel Bussmann

    Tax & Legal Partner

  • Hannah Dobringer

    Junior Tax Consultant

  • Christina Stocker

    Senior Tax Advisor

Background

Due to Zug’s healthy financial situation, it is planning three relief measures for the population, trade, and industry in the coming years. Below, we outline the changes to the tax law:


New features:

  • Temporary reduction in the cantonal tax rate: For the years 2026 to 2029, the tax rate will be temporarily reduced from the current 82 percent to 78 percent. This will benefit both individuals and legal entities.
  • Permanent increase in the deduction for health insurance and other insurance premiums: The deduction for health insurance, other insurance premiums, and interest on savings capital will be increased for cantonal and municipal taxes.

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  • Increase and extension of the pensioner deduction for individuals receiving an AHV or IV pension:
    • Currently, individuals with a net asset value of no more than CHF 287,000 can claim a deduction of CHF 3,400, provided their net income does not exceed CHF 34,400. If the net income does not exceed CHF 57,400, the deduction is CHF 1,700. The deduction is currently granted per tax subject.
    • The existing deduction will be increased and expanded:
      • The deduction will now be granted per individual with an AHV or an IV pension income.
      • Taxpayers who are eligible for the large personal deduction (persons who are married or in a registered partnership, as well as separated, divorced, widowed, or single persons who live with children for whom a child deduction is granted) a deduction of CHF 6,000 per pensioner will now be available, provided that the net assets do not exceed CHF 400,000 and the net income does not exceed CHF 120,000.
      • Other taxpayers will now be able to claim a deduction of CHF 6,000, provided that their net assets do not exceed CHF 400,000 and their net income does not exceed CHF 60,000.


The changes will come into force on January 1, 2026.

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