How does Geneva's tax cap work?

The Geneva tax cap limits the combined cantonal and municipal tax burden to 60% of net taxable income. However, when calculating this cap, the tax authorities assume a minimum theoretical return of 1% on net assets, even if the actual return is lower. For example, a taxpayer in Geneva with no income but with assets of CHF 10 million will be deemed to receive at least CHF 100,000 in income from their assets. The cantonal and municipal taxes taken into account by the tax shield may therefore not exceed CHF 60,000 (CHF 10,000,000 × 0.1 × 0.6).

Direct federal income tax, on the other hand, is payable in addition and is not included in the calculation of the cap.