It aims to support cantons that are worse off due to resources or costs (geographic-topographic and socio-demographic differences).
The remaining 6% are due to transitionary instruments that were introduced to ease the impact of legislative changes.
The economic capacity of a canton is measured by its resource potential, calculated based on its taxable income, wealth of its residents, and the taxable earnings of its juridical persons.
In Switzerland, municipalities have the ability to set their own tax rate.
In most cantons, fiscal equalisation is intended to support municipalities with weaker taxation by ensuring balanced conditions in the tax burden of the municipalities (e.g. art.