For decades Zug has been synonymous with low corporate taxes. But according to a new analysis by PwC, Luzern has now edged ahead.
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The consulting firm calculates Luzern’s maximum effective corporate-tax rate at 11.66% in 2026, marginally below Zug’s 11.71%. At the other end of the scale, companies in Bern and Zurich face effective rates of around 20%—see full tax rate comparison here.
Individual taxes are different. On these Zug (10.1% on CHF 100,000) retains an edge over Luzern (14.79% on CHF 100,000) —see more rates here.
Effective rates can differ from actual tax paid
The rates actually paid by companies can be different. One important factor is the use of patent boxes, which allow income derived from intellectual property to be taxed at reduced rates. Another is the OECD’s global minimum-tax regime, introduced in 2024, which imposes a minimum rate of 15% on large multinational firms.
Tax competition remains fierce
Swiss corporate taxes remain broadly stable. According to PwC, eight cantons reduced rates in 2026, including some of the country’s most tax-competitive jurisdictions as well as Zurich. Four cantons—Basel-Stadt, Solothurn, Jura and Schaffhausen—raised them slightly.
Central Switzerland remains one of Europe’s most competitive regions for corporate taxation. According to PwC, only Hungary has lower corporate-tax rates than Luzern anywhere in the European Union.
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