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Old 13.10.2020, 09:38
zyxi zyxi is offline
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Tax implications for 250k salary

Hi everyone,

I'm considering an offer to move from Asia to Zurich, but I just wanted to check that I have my numbers right when it comes to determining final take-home pay. I'm quite excited by the prospect, but I'm afraid that financially it actually doesn't make sense. I'm expecting about 250k CHF total annual compensation (same as what I earn now), so I'll use this figure below to work things out.

In my current position, I just pay about 15% in tax + 3% into a pension (similar to pillar 2), i.e. total 18%, and my take-home pay is therefore 205k annually, or 17k/month.

I used swisstaxcalculator.estv.admin.ch to calculate tax and contributions (leaving the default deducations), and added various items like pension and health insurance, and it comes down to this:


Federal______14,577___5.8%
Cantonal_____16,450___6.6%
Municipal_____19,575___7.8% (assuming living centrally for now)
OASI________12,813___5.1%
Unemplment___2,139___0.9%
Accident________593___0.2%
Pension______12,500___5.0% (?)
Health ins____12,000___4.8% (for two people)
TOTAL_______90,647___36.3%

Take-home = 250k - 91k = 159k
Monthly = 13k

So if I'm correct, it seems my take-home pay would be 25% less, i.e. decreasing by about 4000 CHF/month or roughly 50,000 CHF per year (ouch). In addition, I estimate my rent in Zurich would be about 1000CHF more than what I pay now, so it's actually more like a 30% cut in disposable income.

I just wanted to check that I have my facts straight and that I'm not missing something (either a cost or a benefit). Is the above correct, at least approximately? I completely realise that 250k is a large and comfortable salary which I am lucky to receive, and it is plenty to live off, so I am not complaining - I am just comparing with my current situation. There are other factors at play too in the decision!

Thanks for your help!
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