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Old 07.01.2011, 23:56
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Tax rate for Basel

Hi everyone. I'm new to the forum and although I've looked around to try to find answers to my questions, I couldn't. So, I'll ask and apologies if this is redundant for some.

If I'm married and living in Basel and my only income is 50000 CHF from salary for example, what are my deductions?

I've stumbled upon this gov't website in order to look at income tax: http://www.estv2.admin.ch/e/dienstle...uerrechner.htm

I clicked 0% for church tax assuming that this was optional (maybe it's obligatory - answer please). In the end, total tax is less than 1000 CHF. Is this possible? It seems way too low. Any other ideas regarding total tax obligations?
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Old 08.01.2011, 00:41
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Re: Tax rate for Basel

Hello

Church tax is optional as long as you don't write what religion you are when registering. The tax rate goes up steadily so what you have sounds right assuming your wife isn't working. Tax is calculated by adding both salaries together so if you are married and both working you pay slightly more than if you pay your tax separately.. Be aware also that health insurance is relatively high compared to the rest of Switzerland in Basel Stadt.

Good luck
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Old 08.01.2011, 03:04
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Re: Tax rate for Basel

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Hi everyone. I'm new to the forum and although I've looked around to try to find answers to my questions, I couldn't. So, I'll ask and apologies if this is redundant for some.

If I'm married and living in Basel and my only income is 50000 CHF from salary for example, what are my deductions?

I've stumbled upon this gov't website in order to look at income tax: http://www.estv2.admin.ch/e/dienstle...uerrechner.htm

I clicked 0% for church tax assuming that this was optional (maybe it's obligatory - answer please). In the end, total tax is less than 1000 CHF. Is this possible? It seems way too low. Any other ideas regarding total tax obligations?

I wonder how many times you saw this link if you search the forum:

http://www.accurity.ch/revenueestimate/

50KCHF a year is an odd salary, so lets say you earn 4,200CHF per month.

Your take home would be:3,898CHF
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Old 08.01.2011, 08:59
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Re: Tax rate for Basel

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I wonder how many times you saw this link if you search the forum:

http://www.accurity.ch/revenueestimate/

50KCHF a year is an odd salary, so lets say you earn 4,200CHF per month.

Your take home would be:3,898CHF
Thanks Bill. While, I like accurity's online tax tool, but it's purported income tax rate is 0.29% and the state's website is 1.9%. Maybe the system needs updating. In any case, you're right it's an odd salary and maybe not worth while to compare these two websites. More importantly, it's nice that they include other deductions like state pension, unemployment, etc...

It's amazing that the income tax rate for my salary will be less than canadian or american income tax rates.
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Old 08.01.2011, 13:30
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Re: Tax rate for Basel

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Thanks Bill. While, I like accurity's online tax tool, but it's purported income tax rate is 0.29% and the state's website is 1.9%. Maybe the system needs updating. In any case, you're right it's an odd salary and maybe not worth while to compare these two websites. More importantly, it's nice that they include other deductions like state pension, unemployment, etc...
I only meant odd on that it does not divide by 12 or 13, so I took 4,200 as a better number which would give you 50,000 pa That's a perfectly valid salary.

I assume BS, so ownload there tax software and play with it and see what the numbers would be like if you were to make a tax return. That should be pretty close the real number.

http://www.steuerverwaltung.bs.ch/baltax.htm

you could also download the rates too:

http://www.estv.admin.ch/bundessteue...x.html?lang=fr

i don't have the time now to decode the txt file but it should tell you the rate you want.

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It's amazing that the income tax rate for my salary will be less than canadian or american income tax rates.
amazed? why? fiscally this quite a reasonable country, especially in comparison to the 'old colonies' both in rate, return for those taxes paid, and dealing with the people in the offices is incredibly civilised. does not compare with any of my previous experiences in UK or IE.

Last edited by bill_door; 08.01.2011 at 13:32. Reason: added links
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Old 08.01.2011, 17:07
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Re: Tax rate for Basel

Thanks so much Bill. I appreciate the links and your time. At incomes around 100k CHF, is there much advantage in living in other cantons? Jura or Bern for example?

I guess I am just surprised to see the percentages are so much lower relative to that in the US and Canada. I always learnt/heard that 'european taxation' was brutal. I guess not :-)
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Old 08.01.2011, 18:12
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Re: Tax rate for Basel

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Thanks so much Bill. I appreciate the links and your time. At incomes around 100k CHF, is there much advantage in living in other cantons? Jura or Bern for example?
swings and roundabouts. what are the boundaries to 'much advantage'?

depends heavily on your personal circumstances. Comparing take home salary from living in different cantons is not valid enough for me, you have to think of the whole picture. For example health insewerance is effectively a tax which depends partly on where you live. There is no indication of that in the salary comparison. Some cantons have a 'fire tax', small in value yes, but then this will be off set by some other tax somewhere else in some other canton. Are you religious? There is the state sponsored religion to consider, for some cantons the deduction in mandatory and you have to take the time yourself to claim it back. how much is your time worth to do that?

Cost of living, rent, mortgage, kids, pubs, clubs, etc etc it's a mine field and too individual circumstance specific to offer proper comparative advice.

download the relevant software I mentioned above for the different cantons and see what the 'fiscal' advantage would be (what can be deducted, what can be offset etc) then think about the cost of living stuff.

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I guess I am just surprised to see the percentages are so much lower relative to that in the US and Canada. I always learnt/heard that 'european taxation' was brutal. I guess not :-)
that'll be where you went wrong: assuming switzerland was european!
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Old 08.01.2011, 19:57
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Re: Tax rate for Basel

Bill - you're the man! Thanks again for your advice. I really appreciate it!

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swings and roundabouts. what are the boundaries to 'much advantage'?

depends heavily on your personal circumstances. Comparing take home salary from living in different cantons is not valid enough for me, you have to think of the whole picture. For example health insewerance is effectively a tax which depends partly on where you live. There is no indication of that in the salary comparison. Some cantons have a 'fire tax', small in value yes, but then this will be off set by some other tax somewhere else in some other canton. Are you religious? There is the state sponsored religion to consider, for some cantons the deduction in mandatory and you have to take the time yourself to claim it back. how much is your time worth to do that?

Cost of living, rent, mortgage, kids, pubs, clubs, etc etc it's a mine field and too individual circumstance specific to offer proper comparative advice.

download the relevant software I mentioned above for the different cantons and see what the 'fiscal' advantage would be (what can be deducted, what can be offset etc) then think about the cost of living stuff.



that'll be where you went wrong: assuming switzerland was european!
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Old 08.01.2011, 20:13
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Re: Tax rate for Basel

Swiss, I am trying to work out taxes too and I've come to the conclusion (albeit on a higher income than what you've posted, 200k CHF pa joint) that the effective tax rate, including all the state deductions and health insurance is around 25% of gross.

Of course this figure depends on kanton and germinale and so it may be +/- 5% out, but overall its not as low as I was expecting and not that much lower than UK (where I am at the moment).

The salaries in terms appear to be much higher, probably because CHF:GBP used to be 2:1, and now more like 1.5:1

My 2 pence worth
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Old 10.01.2011, 21:43
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Re: Tax rate for Basel

I haven't done a careful comparison, but is your 25% estimate for Switzerland really not that much lower than the UK?

I know there are some subtleties to the calculations, but earning the equivalent of 200k CHF in the UK would you not be paying 51% tax on some of your earnings, 41% on most, and the lowest rate would be 31%?

I understand that 25% and 41% aren't that different, but when applied to 200k CHF it adds up to a lot of Swiss chocolate/skiing holidays etc.

In my experience, having moved from UK to CH, the direct tax burden here is lighter than the UK. Especially when the astonishing array of deductions/exemptions are considered. There is however no escaping the fact that the actual cost of living is higher.

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Swiss, I am trying to work out taxes too and I've come to the conclusion (albeit on a higher income than what you've posted, 200k CHF pa joint) that the effective tax rate, including all the state deductions and health insurance is around 25% of gross.

Of course this figure depends on kanton and germinale and so it may be +/- 5% out, but overall its not as low as I was expecting and not that much lower than UK (where I am at the moment).

The salaries in terms appear to be much higher, probably because CHF:GBP used to be 2:1, and now more like 1.5:1

My 2 pence worth
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Old 12.01.2011, 22:51
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Re: Tax rate for Basel

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I haven't done a careful comparison, but is your 25% estimate for Switzerland really not that much lower than the UK?

I know there are some subtleties to the calculations, but earning the equivalent of 200k CHF in the UK would you not be paying 51% tax on some of your earnings, 41% on most, and the lowest rate would be 31%?

I understand that 25% and 41% aren't that different, but when applied to 200k CHF it adds up to a lot of Swiss chocolate/skiing holidays etc.

In my experience, having moved from UK to CH, the direct tax burden here is lighter than the UK. Especially when the astonishing array of deductions/exemptions are considered. There is however no escaping the fact that the actual cost of living is higher.
Sorry, I wasn't detailed enough

The 200K CHF is accross me and the missus (140/60). I recon in the UK we would "only" get around 100k (70/30). Well, I am more confident of the UK numbers but the swiss numbers have been researched as well.

So I'll get taxed roughly 0% on 6, 31% on 34, 41% on 30 = 33% effective
The missus will get roughly 0% on 6, 31% on 24 = 25% effective
Total 31% effective

I can't remember the figure for Zurich on 200K, but it was about 25% for us together including no pillar 2 pension deduction but all the other social security. Then you add in the higher prices on everything, higher rents (even higher than outer London), you don't have much of the margin left. I think... obviously only way to know is to move!
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Old 12.01.2011, 23:55
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Re: Tax rate for Basel

If your in Zurich here is the Quellensteuer rates for 2011, if your moving from the UK that is how you pay your income tax. National, Canton and Village averaged out and you pay that.

This is the spreadsheet for joint earners (Type C)
http://www.steueramt.zh.ch/html/steu...if_c_QSt11.pdf

Each revenue band has 2 pages, rate with Church tax, rate without. Without church tax is "Ohne Kirchensteuer" The numbers C0, C1 etc are the number of kids you have.

It might seem really low to you, but it is all about the deductions...its just figured out all for you. You'll still have to do a tax return at the end of the year though as you are over the 120k figure.

This is for unmarried: (A)
http://www.steueramt.zh.ch/html/steu...if_a_QSt11.pdf

This is for married single earners: (B)
http://www.steueramt.zh.ch/html/steu...if_b_QSt11.pdf

I'm doing a 10% calculation for "social" type taxes in total..not sure if thats anywhere near accurate but thats what my potential employeer said.
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