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Old 02.06.2017, 13:24
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Change in tax rate after birth of child

Dear EF'rs,

My wife and I are expecting the birth of our first child in a few months. By how much can I expect my tax rate to go down post delivery?

Some details:
I pay withholding taxes in the Canton on Zurich
My current tax rate is around 9.6% on an annual income of around CHF140k
My wife is not working
We don't have any kids at the moment

Thank you.

Cheers,
Hereandnow
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Old 02.06.2017, 13:29
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Re: Change in tax rate after birth of child

check the table here
https://www.steueramt.zh.ch/dam/fina...rif_2014_B.pdf

and check the right tariff (with or without church tax)
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Old 02.06.2017, 13:38
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Re: Change in tax rate after birth of child

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check the table here
https://www.steueramt.zh.ch/dam/fina...rif_2014_B.pdf

and check the right tariff (with or without church tax)
Thank you k_and_e! Have a nice day!
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Old 02.06.2017, 13:45
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Re: Change in tax rate after birth of child

It will go down slightly, but it will also go up slightly due to the the child allowance moving you into a higher bracket.

Tom
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Old 02.06.2017, 13:47
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Re: Change in tax rate after birth of child

Congratulations! Though I suspect any decrease in tax will be the least of your worries!
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Old 02.06.2017, 14:20
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Re: Change in tax rate after birth of child

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It will go down slightly, but it will also go up slightly due to the the child allowance moving you into a higher bracket.

Tom


I just checked: My gross salary increases due to the child allowance (as you point out). But the decrease in tax rate (from 9.57% to 8.32%) is still sufficient to lower the absolute tax paid - leading to a tax saving of around CHF112/month.


Thanks Tom. Have a nice day!
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Old 02.06.2017, 14:27
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Re: Change in tax rate after birth of child

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Congratulations! Though I suspect any decrease in tax will be the least of your worries!


Thank you! I am sure it will not be as bad as one imagines it to be!


Have a nice day, Phil_MCR.
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Old 02.06.2017, 14:38
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Re: Change in tax rate after birth of child

Your tax situation is determined as of your actual position on 31 December (previous year), so if you married on 30th December 2016 you would be taxed for the full year as married, if you married on 2nd Jan 2017, your tax position for 2016 would be based as single.
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Old 02.06.2017, 15:00
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Re: Change in tax rate after birth of child

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Your tax situation is determined as of your actual position on 31 December (previous year), so if you married on 30th December 2016 you would be taxed for the full year as married, if you married on 2nd Jan 2017, your tax position for 2016 would be based as single.


Extending that logic: If my child is born during the year, I would not benefit from the lower tax rate until the beginning of the next year?


That does not sound quite sensible.


As I mentioned in the first post, my taxes are deducted on a withholding basis. And so I assumed that changes in variables used to calculate taxes would be incorporated on a real time basis.


Thank you for your inputs.
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Old 03.06.2017, 14:27
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Re: Change in tax rate after birth of child

Hi
you mentionned that your income is 140K. If this is paid out in 12 parts and your spouse is not working, your tax rate is B0 and at 9.67%.
When your baby is born and registered, your Gemeinde is changing the tax rate to B1.
Since your salary goes up by 200 CHF, the new tax rate would be 8.13%. So far so good. If you have an income of 120K+, you need to prepare a tax declaration. This means that you are paying taxes at the rate of your Gemeinde (and not an average rate anymore).

Cheers

Andy
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Old 11.06.2017, 10:58
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Re: Change in tax rate after birth of child

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Hi
you mentionned that your income is 140K. If this is paid out in 12 parts and your spouse is not working, your tax rate is B0 and at 9.67%.
When your baby is born and registered, your Gemeinde is changing the tax rate to B1.
Since your salary goes up by 200 CHF, the new tax rate would be 8.13%. So far so good. If you have an income of 120K+, you need to prepare a tax declaration. This means that you are paying taxes at the rate of your Gemeinde (and not an average rate anymore).

Cheers

Andy
Dear Andy,

Thank you for your inputs. My income is 120k+, however, I don't prepare a tax declaration. I pay withholding taxes, which my employer deducts from my gross monthly income.

I am on an L permit. Do I have to prepare a tax declaration?

Thank you in advance.

Kind regards
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Old 14.06.2017, 08:43
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Re: Change in tax rate after birth of child

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Dear Andy,

Thank you for your inputs. My income is 120k+, however, I don't prepare a tax declaration. I pay withholding taxes, which my employer deducts from my gross monthly income.

I am on an L permit. Do I have to prepare a tax declaration?

Thank you in advance.

Kind regards
Congratulations on the impending new arrival.

If your gross income is higher than 120k, you have to file taxes irrespective of your permit. I am quite surprised that the Tax office has not sent you forms to fill already.
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