Lower Income Tax (ICC)
One of Geneva's tax changes for 2025 is the cantonal and municipal income tax cuts. The decrease is between 11,4 % and 5,3 %and will depend on your taxable income. The new scale will be applied when you file your tax return in 2026.
Bear in mind, however, that despite this tax change, the tax cut does not apply to advance payments. The tax authorities (AFC) base their calculations on the latest information available (such as your most recently filed tax return). Direct federal tax (IFD) remains unchanged.
Changes in Advance Payments
Another tax change that will affect Geneva in 2025 concerns tax instalments. These can now be paid over the course of a year, in 12 monthly instalments instead of 10. This will help spread the tax burden more evenly over the year.
If you do not make any changes to your tax instalments, the new scale will be applied to calculate your taxes. Occasionally, you may have paid more tax than necessary, in which case you will normally be reimbursed by the tax authorities.
Property Taxation and Wealth Tax
LEFI is one of the major tax changes in the canton of Geneva in 2025. To better reflect current tax realities, all properties purchased before December 31, 2014 will have their tax value increased by 12%.
The tax value will continue to increase each year, but a 1% cap will be applied to avoid too drastic an increase. Owners of more recent homes are not affected by these increases.
Lower Wealth Tax
The main change brought about by the LEFI is a reduction of 15% for wealth tax. Wealth includes, in particular, the tax value of real estate, which enables an owner to reduce his or her tax burden.
For example, if an owner currently pays CHF 2,000 in wealth tax, he will now pay only CHF 1,700 after the reform.
Reduction in Additional Property Tax (IIC)
Supplementary real estate tax is levied when you own real estate in the canton of Geneva. You must pay this tax at the end of each tax period. The tax is calculated on the basis of the tax value of the property.
On the other hand, your income or your place of residence are not taken into account for its calculation. In other words, even if you live in another canton or even another country, as long as you have a property in Geneva, you will be subject to this tax.
Until January 1, 2025, this tax was 1‰. After this date, it was divided by 5, with a current rate of 0,2 ‰.
Flat-Rate Maintenance Fee
One of the tax changes in Geneva concerns property owners who incur costs for repairs or maintenance of a building. They will now be able to deduct a lump sum of :
- 15 % if the building in question is less than 10 years old
- 25 % if the building concerned is over 10 years old
Income from a Secondary Activity
If you have a secondary activity in addition to your main activity. If you earn between 800 and 2400 CHF income, you are entitled to deduct 20% of the latter in your tax return 2025.
Tax burden of Divorced Parents
Another important tax change in Geneva applies if you are a divorced parent and share custody of your child(ren) with the other parent. In this case, you will no longer be taxed on your entire income, but on 55.56 % of your income.
Tax burden of Divorced Parents
The tax changes in Geneva are taking place against a backdrop of tax competition between the various Swiss cantons, each of which is seeking to be the most attractive. Although Geneva will see a definite drop in tax revenues, the Conseil d'Etat remains optimistic.
Frequently Asked Questions
What are the main tax changes in Geneva in 2025?
Geneva is introducing several tax reforms in 2025, including a reduction in income tax (ICC), a reduction in wealth tax, changes to the payment of instalments, and adjustments to real estate taxation via LEFI.
How much will Geneva's income tax fall by 2025?
The reduction in cantonal and communal income tax varies between 11.4 % and 5.3 %depending on the level of taxable income. This new scale applies from the 2025 tax return (filed in 2026).
What will change for advance payments in 2025?
From 2025, you will be able to pay your instalments in 12 monthly instalments instead of 10.This allows the tax burden to be spread more evenly over the year.
What is LEFI and who is affected by it?
LEFI (Loi sur l'estimation de certains immeubles) mainly concerns properties purchased before December 31, 2014. It entails a gradual increase in their tax value (+12 % initially, then +1 % per year maximum).
What is the 15 % reduction in wealth tax?
The reform introduces a general reduction in 15 % on wealth tax. This concerns all taxpayers with taxable assets, including the tax value of their real estate.
How will divorced parents with joint custody be taxed in 2025?
From 2025, a divorced parent with shared custody will be taxed on only 55.56 % of his or her income, to better reflect family expenses in the tax calculation.
