Basel-Stadt becomes first Swiss canton to approve automatic salary tax deduction
Voters in the half-canton approved a landmark change on Sunday, making it the first in Switzerland where employers will subtract tax directly from paychecks by default.
Direct tax collection approved
A majority of postal votes cast on 14 June 2026 favoured the new system, with 53.4% in support and 46.6% opposed, according to the State Chancellery. The measure makes Basel-Stadt the first canton in the country to introduce direct salary tax deduction. Employees who live and work in the canton will have 10% of their gross wage automatically deducted in the city of Basel, and 5% in the municipalities of Riehen and Bettingen. Workers can opt out or adjust the rate.
- Salary tax deduction
- 53.4 %
- Herzstück railway credit
- 56.1 %
- Pigeon counter-proposal
- 67.7 %
- Klybeckinsel green initiative
- 38 %
How the system will work
The new rule applies on a mandatory basis for companies with 50 or more employees; smaller firms can participate voluntarily. The deduction is designed to spread tax obligations evenly throughout the year. Tax returns will still be required, and the automatic deduction does not replace final annual settlement. The Grand Council majority argued that the change could help curb personal indebtedness by preventing large lump-sum tax bills.
Contentious path to the ballot
Today’s vote follows a razor-thin compromise in the cantonal parliament, where the counter-proposal to a Social Democratic initiative passed by 49 votes to 48. Business associations successfully launched a referendum against the plan, triggering the popular vote. Supporters described the automatic withholding as a practical aid that makes tax payments more predictable. Opponents warned it would saddle companies with extra bureaucracy and erode individual financial responsibility.
Three other cantonal questions decided
The same ballot saw approval of a 3.6 million franc planning credit for the “Herzstück” railway hub project, with 56.1% in favour. Voters backed a government counter-proposal for managing the urban pigeon population (67.7%) and rejected the original pigeon initiative (63.8%), paving the way for monitored dovecotes. The Klybeckinsel people’s initiative, which sought to turn a former industrial island into a wooded green zone, was defeated with 62% voting no, allowing the canton to proceed with mixed-use development plans.
