Bern Tax Monitor 2025

• The Canton of Bern has the highest regular corporate income tax rate in Switzerland at 20.54%.

• Under STAF measures, innovative companies can reduce their tax burden by about 8.5 percentage points to 12.05%.

• With a maximum personal income tax rate of 40.85%, Bern remains among the highest in Switzerland despite a slight reduction.

• The Trade and Industry Association of the Canton of Bern (HIV) sees urgent need for action to reduce the canton’s tax policy disadvantage.

The Canton of Bern ranks at the bottom nationwide in 2025 for the taxation of both legal entities and individuals, as shown by the current Bern Tax Monitor from KPMG and The Trade and Industry Association of the Canton of Bern (HIV).

Corporate Taxes: High Burden in the Canton of Bern

With an unchanged maximum corporate tax rate of 20.54% compared to the previous year, the Canton of Bern remains at the bottom in the inter-cantonal comparison. This is about 6 percentage points above the Swiss average, which fell from 14.61% in 2024 to 14.40% in 2025. “Even with the planned corporate tax relief from 2029, Bern is still far from the middle of the pack,” says Frank Roth, Head of the Bern Tax Department at KPMG Switzerland.

For minimum tax rates, the cantons are closer together: High-tax cantons benefit more from STAF instruments, while low-tax cantons grant only limited deductions. In Bern, research-intensive companies can reduce their corporate tax rate to as low as 12.05% thanks to special deductions for research and development and the patent box. While Bern still lags behind other cantons in minimum rates, the gap to the Swiss average of 10.89% is much smaller than for regular rates. “Thanks to the implementation of STAF measures, Bern remains significantly more attractive for research-intensive companies in terms of minimum tax rates than many other cantons in 2025,” states Frank Roth.

Innovative Companies Benefit, Large Companies See Disadvantages

The reductions mainly benefit innovative companies investing in Bern and advancing patent-protected developments. Even if the reductions are not fully utilized, companies in Bern enjoy above-average advantages in a nationwide comparison. “So far, around 200 companies have benefited from the measures – their potential is far from exhausted, so the instruments should be made more widely known,” says Henrik Schoop, Director of the Trade and Industry Association of the Canton of Bern (HIV).

In Bern, about 21% of legal entities bear almost 98% of the cantonal tax burden, while about two-thirds pay hardly any cantonal taxes. “Larger companies still see a location disadvantage and, if they relocate, can leave significant gaps,” Schoop continues. The HIV therefore emphasizes that decisive action is needed to bring Bern into the Swiss midfield.

Global Minimum Tax: More Revenue, Greater Competitive Pressure

The OECD minimum tax for large companies leads to moderately higher revenues and NFA contributions in Bern. At the same time, it increases pressure in inter-cantonal competition: Other cantons use their additional revenues specifically to relieve companies and individuals and to increase their attractiveness – an option that Bern has so far only been able to implement to a limited extent.

However, the HIV also sees opportunities for Bern: “The additional revenues from the global minimum tax offer the opportunity to invest specifically in location attractiveness and to strengthen Bern in the long term,” states Henrik Schoop.

US tariffs affect exporters from the Canton of Bern

Exporting companies in the canton of Bern are feeling the impact of US tariffs. Strategic questions such as product price elasticity, the planning of sales markets and production sites, as well as the resilience of supply chains, are increasingly coming into focus. Many businesses have been forced to assess and implement short- and medium-term mitigation measures. “While global trade developments lie beyond the canton’s control, Bern can strengthen its competitiveness and maintain its attractiveness through targeted location promotion and reliable framework conditions,” says Frank Roth.

Personal Income Taxes: Bern Well Above the Swiss Average

In 2025, the downward trend in cantonal income tax rates continues. Over the past 18 years, marginal tax rates for individuals in Switzerland have been reduced by about 2 percentage points on average – from 34.85% to 32.54%. Bern also reduced its marginal rate last year (-0.19%), but at 40.85% it remains well above the Swiss average. Only the western Swiss cantons of Vaud (41.50%) and Geneva (41.63%) tax top incomes higher.

With the 2027 tax law revision, Bern plans relief for low and middle incomes. Adjusted income tax rates and a higher social deduction are expected to provide taxpayers with overall relief of around 20%.
“The smoothing of tax progression for middle- and lower-income groups is well-intentioned but ultimately has no impact on the canton’s tax competitiveness. On the contrary, large sums of money are being spent ineffectively, funds that are then lacking for improvements in areas where tax competition truly matters,” remarks HIV President Daniel Arn.