Taxes are complex and for many people a book with seven seals. It is necessary to keep an eye on all relevant aspects, which is hardly possible for nonprofessionals. Therefore, we would like to draw your attention to the three most important factors that affect your tax bill:
- The residential canton
The tax rates differ from canton to canton: tax havens can vary widely, although income and wealth do not change. In the following overview you can see cantons classified in 6 levels based on their tax rate:
- Very cheap:Zug
- Rather cheap:Zurich, Schwyz, Ticino, Valais and Geneva
- Average:Aargau, Thurgau, Nidwalden, Graubünden and Appenzell
- Above average:Schaffhausen, St. Gallen, Glarus, Uri, Lucerne, Basel, Freiburg and Obwalden
- Expensive:Bern, Solothurn and Jura
- Very expensive:Vaud and Neuchâtel
- The place of residence
The place of residence plays also an important role when it comes to taxes. There are enormous differences in the tax rates at municipal level within the same cantons. For example, if an individual or a couple has annual income of 200000 Swiss francs, tax bill would amount to 37201.45 Swiss francs in the city of Zurich. In the municipality of Kilchberg, which is also located in the canton of Zurich, the same individual or couple would have to pay the tax bill amounting to 29901.75 Swiss francs. The difference is even greater in case of the income amounting to 300000 Swiss francs. In the city of Zurich, tax bill would be to 64469.15 Swiss francs, whereas in Kilchberg 51815.50 Swiss francs.
- Civil status
Two different tariffs can be applied in the tax calculation. Which of the two is used depends on your marital status. If you are not married the basic tariff applies, for married couples the married tariff. Although there has been a tendency recently to abolish tax “marriage penalty” (taxation of higher income at a higher tax rate), it still exists. The status “married” can therefore still lead to higher tax costs, but it can also have a neutral effect or even become an advantage.
Use our consulting services
Steuerzentrum offers you comprehensive and competent advice when it comes to tax optimization. You can be advised on the place of residence from the point of view of taxation and your tax savings potential calculated in case you change your place of residence. We integrate all other relevant factors into this calculation and help you find an ideal place to live. We are also happy to assist you with the relocation, providing you either with complete relocation support or just with the service of registration and deregistration with municipal authorities.