On 27 September 2026, the people of the canton of Vaud will vote on one of the most debated tax issues of recent years: the famous "12% initiative". The question sounds simple, should cantonal tax be cut by 12%, but the consequences are significant. At NeoFidu we receive many questions about it. Here is a neutral breakdown to understand what is at stake, and above all what it would concretely change on your tax bill.
In brief: a 12% cut in cantonal income and wealth tax · vote on 27 September 2026 · parliament's counter-project of −7% by 2027 · estimated cost of about 272 million francs per year for the canton.
What exactly is being voted on?
The initiative calls for a 12% rebate on the final cantonal income and wealth tax bill. It was launched in 2023 by three Vaud business organisations (the Chambre vaudoise immobilière, the Chambre vaudoise du commerce et de l'industrie and the Fédération patronale vaudoise) and gathered around 28,000 signatures. Its stated aim: to give back purchasing power, particularly to the middle class.
One essential point from the outset: this cut concerns only the cantonal share of the tax. It affects neither the communal tax (each municipality sets its own coefficient) nor the direct federal tax, which remains the same everywhere in Switzerland.
What it would change for your wallet
The mechanism is deliberately simple: once your cantonal tax is calculated, a 12% reduction is applied. A few orders of magnitude, purely for illustration:
| Current cantonal tax | Estimated saving with −12% |
|---|---|
| CHF 3,000 | ~CHF 360 |
| CHF 8,000 | ~CHF 960 |
| CHF 15,000 | ~CHF 1,800 |
These figures are only orders of magnitude: the real result depends on your taxable income, your wealth, your family situation and your municipality of residence. But the principle is the same for everyone: the higher your cantonal tax, the larger the saving in francs. This is precisely one of the points at the heart of the debate, which we return to below.
The 7% counter-project
The story is not just a simple "yes or no". Neither the cantonal government nor the cantonal parliament supported the initiative in its current form. In response, the parliament adopted, as part of the budget debates, a more moderate cut: a cumulative 7% reduction in cantonal income tax by 2027, as a counter-project.
In short, a tax cut is already under way in the canton, regardless of the vote. The question on 27 September is therefore mainly about its scale: should the canton stick to this 7% move, or go further with the 12% requested by business circles? The initiative committee chose to maintain its text despite the counter-project, considering that it does not go far enough.
An estimated cost of 272 million
The crux of the matter is the cost to cantonal finances. According to the government's estimates, the initiative would represent a shortfall of about 272 million francs per year for the canton. It is this figure that crystallises the positions. Having cleared the legal hurdles (the Federal Supreme Court validated holding the vote), the matter therefore comes before the people in a tense political climate.
The arguments
As with any vote, two visions clash. Here, in a balanced way, are the main arguments put forward on each side.
| Supporters (business circles, PLR, UDC) | Opponents (left, unions) |
|---|---|
| Give purchasing power back to the middle class | Seen as unfair, mainly benefiting high incomes and large fortunes |
| Strengthen the canton's tax attractiveness | Risk of cuts to public services (health, education, social) |
| Cantonal finances seen as healthy, allowing part of the burden to be returned | 272 million in lost revenue seen as risky for the budget balance |
At NeoFidu, our role is not to tell you how to vote, but to give you the keys to understand the issue and its impact on your personal situation.
What you can do now
Whatever the result on 27 September, one thing does not change: filling in your tax return properly remains the best way not to pay more tax than necessary. Deductions linked to the third pillar, professional expenses, childcare costs or property maintenance work often have a far more concrete effect on your bill than an adjustment of a few percent.
If you are wondering what this reform would mean precisely in your case, or how to optimise your Vaud tax return, our team is here to help. We follow the file closely and will adapt our advice to the ballot's verdict.
This article is provided for information only and is neither a political stance nor individualised tax advice. The amounts cited are simplified illustrations and vary by municipality and situation. Information current as of 16 August 2026, subject to change before the vote. Sources: RTS, 24heures.