We just arrived in Zürich a couple of months ago and we are now trying to get a grip of things finance related. The Quellensteuer / Tax at Source system is confusing me a little though so I wanted to check in and see if what I have understood gels with other people's experiences since I am worried about a surprise tax bill at the end of the year.
We are earning around 200k together but neither is earning >120k individually.
I have read all I could on the forum and from what I understand this means we pay tax at source + have to do an annual tax return.
My payslip stated a tax at source rate of 8%, which seems considerably lower than the 15ish % tax rate for married couples earning ca. 200k quoted on the Zurich tax website.
Based on what I have read our actual taxable income will be lower (around 160k or so) if we make good use of deductions (we don't have kids so these were just the very standard deductions and putting the maximum each into pillar3a).
So is it safe to assume we will a) have to complete a tax return b) be taxed at around 160k together and thus c) need to put aside the difference between the tax at source rate we are being charged and the tax rate for married couples earning around 160k (about 13.3% from what I can see
13% - 8% = ca. 5% unpaid
So I'm planning to put an additional 5% of my gross income aside for taxes.
Does that seem right? :roll eyes:
Thanks in advance for any advice / shared experiences.