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Old 24.03.2011, 09:40
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90K of annual salary, get 4500 per month?

Hi

My husband and I both are working in Vaud. We don't have children. My annual salary is 90K, but I am paying 24% of income tax. Every month I only get 4500. I have queried our HR about this. They told me that Vaud is a conservative canton. A wife is considered to take care of family. If a wife is working, she should pay more tax than husband. However, in my case, my income tax is double of my husband's, but his annual salary is more than me.

Have you ever heard about such explanation about tax in Vaud? Why does the company tax us more than it should be?
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Old 24.03.2011, 13:20
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Re: 90K of annual salary, get 4500 per month?

I don't know anything about tax in Vaud, but I know for sure that here in BS, in a double earner family, the wife is taxed more at source than her husband. It is because it's assumed that the husband will be making more money than the wife, so this "additional" income from the wife is quite heavily taxed.
No solution, really, until you get your C permit and are not taxed at source - I suppose.

Ask your tax authorities or look on their website for the tax at source table. This is just a suggestion; in BS, such a table is available online and I was able to see that I was being taxed at the correct level.
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Old 24.03.2011, 13:48
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Re: 90K of annual salary, get 4500 per month?

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Ask your tax authorities or look on their website for the tax at source table. This is just a suggestion; in BS, such a table is available online and I was able to see that I was being taxed at the correct level.
I should be very grateful if you could post a link to this table, so I know what I am looking for in BL ...
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Old 24.03.2011, 13:51
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Re: 90K of annual salary, get 4500 per month?

And when you get your C permit & have to fill in a tax return both salaries are added together & taxed as one so you up a tax bracket or two anyway. No one but the tax man wins.

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I don't know anything about tax in Vaud, but I know for sure that here in BS, in a double earner family, the wife is taxed more at source than her husband. It is because it's assumed that the husband will be making more money than the wife, so this "additional" income from the wife is quite heavily taxed.
No solution, really, until you get your C permit and are not taxed at source - I suppose.

Ask your tax authorities or look on their website for the tax at source table. This is just a suggestion; in BS, such a table is available online and I was able to see that I was being taxed at the correct level.
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Old 24.03.2011, 13:54
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Re: 90K of annual salary, get 4500 per month?

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I should be very grateful if you could post a link to this table, so I know what I am looking for in BL ...
The pdf is on this page:
http://www.steuerverwaltung.bs.ch/dnp-merkblaetter.htm

And it is called "Wegleitung und Tarife zur Quellenbesteuerung" (Ausgabe 2011)

I originally found all this by googling "Quellensteuer BS"
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Old 24.03.2011, 14:36
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Re: 90K of annual salary, get 4500 per month?

LiquidPaper- That document is in German. Someone in Lausanne will probably not understand German.....
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Old 24.03.2011, 14:39
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Re: 90K of annual salary, get 4500 per month?

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LiquidPaper- That document is in German. Someone in Lausanne will probably not understand German.....
That is my fault, not Liquid Paper's - Liquid Paper was responding to my request for the link, (we are in Baselland) and not to the OP directly on this point.

Apologies for the off-language moment.
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Old 24.03.2011, 14:53
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Re: 90K of annual salary, get 4500 per month?

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Hi

My husband and I both are working in Vaud. We don't have children. My annual salary is 90K, but I am paying 24% of income tax. Every month I only get 4500. I have queried our HR about this. They told me that Vaud is a conservative canton. A wife is considered to take care of family. If a wife is working, she should pay more tax than husband. However, in my case, my income tax is double of my husband's, but his annual salary is more than me.

Have you ever heard about such explanation about tax in Vaud? Why does the company tax us more than it should be?
In Vaud the law is not that "working wives are heavily taxed", although people tend to interpret it as such. Rather, the salary of the secondary earner in a marriage is taxed at a much higher tax rate than the primary earner, as this income is considered to be somehow supplementary. Generally it is the wife who earns less and hence has a higher tax rate, but if the salaries were reversed and she had the higher income, she would be taxed at the lower rate and her husband at the higher one.

The figures you have stated sound exactly right for a secodnary earner in Vaud; I also pay significantly more tax than my hubby even though his income is only margainally higher than mine. Dommage pour nous.
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Old 24.03.2011, 14:56
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Re: 90K of annual salary, get 4500 per month?

In simple terms both people are working and taxed at source.

Husband: Earns 100k. Pays the tax due for a family income of 100k
Wife: Earns 100k. Pays the tax due for a family income of 200k MINUS the tax already paid by the husband.

If you are taxed at source this can be brutal - simply because the second income ususally covers the curve of tax increase. By the time you hit 300-400k the curve flattens and you don't have that problem.
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Old 24.03.2011, 23:40
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Re: 90K of annual salary, get 4500 per month?

Following on from this discussion, how do I work out the correct quellensteuer for each spouse ?

I have the tax schedules for Quellensteuer tarif B (married, three kids!) - is this the total per month for two people that is owing ? Which partner pays which proportion ?
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Old 25.03.2011, 01:06
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Re: 90K of annual salary, get 4500 per month?

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In simple terms both people are working and taxed at source.

Husband: Earns 100k. Pays the tax due for a family income of 100k
Wife: Earns 100k. Pays the tax due for a family income of 200k MINUS the tax already paid by the husband.

If you are taxed at source this can be brutal - simply because the second income ususally covers the curve of tax increase. By the time you hit 300-400k the curve flattens and you don't have that problem.
makes sense when you put it like that. but if i was the wife, it would piss me off.

quellensteur BS. how apt.
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Old 25.03.2011, 01:42
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Re: 90K of annual salary, get 4500 per month?

Conservative canton? Aren't they actually encouraging people to not get married? That would save the tax wouldn't it? Two single people merely happening to be living under the same roof.....
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Old 25.03.2011, 08:48
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Re: 90K of annual salary, get 4500 per month?

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Conservative canton? Aren't they actually encouraging people to not get married? That would save the tax wouldn't it? Two single people merely happening to be living under the same roof.....
Yeah - not exactly family friendly policies. I have heard of at least one couple who "divorced" for tax reasons. Still live together, but are not officially married.
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Old 25.03.2011, 13:06
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Re: 90K of annual salary, get 4500 per month?

This is scarily confusing.

I had it explained to me today by a tax agent over the phone...

For Quellensteuer:

Married, three kids.

Primary income earner (husband) is taxed based on his monthly income, being married, no church tax, and then the bracket changes (quite significantly) because of the three children...

Secondary income earner (me) is taxed on a different scale - married, but no children, because the children were 'applied' to the first

I'm not sure how people got the 'put the two together and tax as one income' thing, because it's not how I understand it - my husband's tax will be around 4-5% and mine will be 6-7%. Nothing like the '24%' that someone else mentioned.

Obviously, we have much lower salaries, and three kids...

Oh, and the 120K threshold for lodging a tax return is not a 'joint' one apparently - you only have to lodge it if either salary is over the threshhold - but theoretically you could pay Quellensteuer and not lodge if both partners were earning 119K each...

I'd appreciate it greatly if anyone can confirm this, because right now I'm sure hoping the tax lady is right...although I'm peed off that my husband earnt just a fraction over the threshold in 2009 because of being taxed on the discount that we get for school fees (kids go to school where we teach)....and because of the that fraction of a threshold we have to now lodge every year from 2009 onwards, and pay the Zurich rate not the Quellensteuer...

On that note, anyone got a rough experience on how much the Zurich tax will be compared to the Quellensteuer... ?
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Old 25.03.2011, 13:39
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Re: 90K of annual salary, get 4500 per month?

The add the two salaries together thing comes when you are married & also have to fill out a tax return because you have a C permit or own property.

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I'm not sure how people got the 'put the two together and tax as one income' thing, because it's not how I understand it - my husband's tax will be around 4-5% and mine will be 6-7%. Nothing like the '24%' that someone else mentioned.
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Old 25.03.2011, 13:50
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Re: 90K of annual salary, get 4500 per month?

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I'd appreciate it greatly if anyone can confirm this, because right now I'm sure hoping the tax lady is right...although I'm peed off that my husband earnt just a fraction over the threshold in 2009 because of being taxed on the discount that we get for school fees (kids go to school where we teach)....and because of the that fraction of a threshold we have to now lodge every year from 2009 onwards, and pay the Zurich rate not the Quellensteuer...

On that note, anyone got a rough experience on how much the Zurich tax will be compared to the Quellensteuer... ?
Yes, I'd like to know that too - I heard it said that once you get on the C permit, the tax is actually higher, but I don't have any numbers.

As for what the lady told you, swisspea, I don't really know. In my kanton, there are two different tables to use for "Ehemann" and "Ehefrau" if you're in a double-earner marriage. "Ehefrau" rates are higher than "Ehemann" for the same income; both tables allow lower tax rates if there are children, so this sounds different from what you were told, but you're also in a different kanton.
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Old 25.03.2011, 13:52
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Re: 90K of annual salary, get 4500 per month?

My understanding of Quellensteuer is that it is a Kantonal rate - and uses as its base an average deduction. Theoretically moving from 119k to 120k shouldn't make much of a difference - nor should moving community.

Low tax communities only really become noticable once household salaries go past 200k - or so the model seems to suggest.

The biggest change is having to save the cash yourself each month - knowing how much tax will be due at the end of the year.
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Old 25.03.2011, 13:57
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Re: 90K of annual salary, get 4500 per month?

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My understanding of Quellensteuer is that it is a Kantonal rate - and uses as its base an average deduction. Theoretically moving from 119k to 120k shouldn't make much of a difference - nor should moving community.
why not? it would be the difference between being taxed at the average vs (potentially) the lowest/highest gemeinde.
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Old 25.03.2011, 14:07
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Re: 90K of annual salary, get 4500 per month?

Wow... this would suck. I thought it was bad enough going from my 9% quellensteuer taxing to 19% taxing now that I'm married to a Swissie... but at least we get one tax bill together and we split it according to the ratio of earnings.

I mean I guess it's "all one household" but it seems like a big slap in the face that the woman's paycheck is lowered so significantly and she has to ask her husband to make sure it's all even at home. How is she supposed to secretly support her pimps on the side without all her due earnings??
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Old 25.03.2011, 16:13
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Re: 90K of annual salary, get 4500 per month?

Thanks for all the comments. Keep them coming, it's very reassuring!
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