Estimated reading time: 4 min
At a glance
- The approved reduction concerns Vaud cantonal income and wealth tax from 2027.
- It does not imply a 12% reduction in the total tax bill.
- The coordination of the 7% and 12% reductions must be checked against the adopted legislation.
After a tax vote, the instinct is to take the latest bill and deduct the announced percentage. Yet this calculation mixes different components. To estimate the impact on a Vaud household’s budget, start by isolating the cantonal portion concerned.
The personal circumstances in 2027 also matter: a change in income or wealth may have a greater impact than a change in a tax parameter. A reliable comparison uses explicit assumptions.
What has been decided
On 27 September 2026, the “Tax cuts for everyone” initiative was approved with 53.1% of the vote. The Council of State announced the implementation of a 12% reduction in cantonal income and wealth taxes from 2027. Its press release also states that the changes to the tax shield decided in December 2024 will not enter into force. [1]
This popular vote result must be distinguished from legislative and budgetary adjustments. File 26_LEG_91 concerns the amendment of the law on the reduction of cantonal income tax. The documents consulted do not establish that its coordination with the other scheme has been definitively settled. [2]
Who is affected and how should the figures be read?
The analysis primarily concerns the personal taxation of Vaud taxpayers, including self-employed people and company directors. This percentage must not be applied to the corporate income tax of an SA or Sàrl, and cantonal tax must not be confused with municipal or federal tax.
Purely illustrative example: if the relevant cantonal base were CHF 10,000, 12% of that base would be CHF 1,200. If the bill also included CHF 8,000 of other unchanged components, that CHF 1,200 would represent approximately 6.7% of CHF 18,000, not 12%. This example is not a Vaud tax calculation and does not prejudge the definitive legal basis that will apply.
What should you do about instalments and budgeting?
Prepare a table separating cantonal, municipal and federal tax. Add any changes in income, wealth or family circumstances already identified for 2027. Keep the calculation assumptions so you can update them without starting from scratch.
When coordinating the 7% and 12% reductions, avoid both automatically adding them up to 19% and making an unverified claim that a definitive ban on combining them has been adopted. A budget may include a provisional scenario, provided its conditional nature remains clear.
Any actual adjustment of instalments must then be based on the applicable parameters and instructions, taking actual circumstances into account. Do not reduce an overall bill uniformly solely on the basis of the initiative’s title.
Caution
For anyone affected by the tax shield, the comparison must take into account the retention of the corresponding rules and the abandonment of the announced changes. A general reduction does not replace a simulation of that particular situation.
The State estimates the negative impact on its finances at CHF 272 million and announces budget adjustments. [1] Readers should therefore distinguish direct tax relief from possible changes to public services, without predicting measures that have not been decided.
Conclusion
The vote result sets a clear direction for 2027. However, a household’s savings must be calculated using its tax assessment and the definitive parameters. A traceable simulation is more useful than indiscriminately deducting a percentage.
How Delta Conseil SA can support you
Delta Conseil SA can help you assess your situation and gather the relevant information.
Frequently asked questions
Will the total bill fall by 12%?
Not automatically: the announced scope is cantonal and covers income and wealth.
Can we say today that 7% and 12% add up to 19%?
No. Coordination of the schemes must be checked against the adopted legislation; no automatic addition should be promised.
Can I change my payments without recalculating?
A simulation separating the components and the applicable official instructions is necessary before making an adjustment.
Official sources
- State of Vaud — Vote result, 27 September 2026
- Grand Council — File 26_LEG_91, session of 6 October 2026
Editorial date: 2026-10-02 · Prepared and checked on 20 October 2026. This updated version is not evidence of publication on the editorial date.
Disclaimer
This publication is provided for information purposes and does not constitute individual legal, tax, accounting or financial advice. Each situation must be assessed in light of its specific circumstances and the law applicable at the time of the decision.
For more information, please see our Legal notice and disclaimer.
