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Old 16.01.2021, 13:50
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Info on taxes for married couple

Hello everyone,

I have a financial question...
Me and my boyfriend have decided we would like to get married soon but at the same time, we are worried about our future financial situation.
Many people told us that marriage will be our financial suicide, while other said we would gain from it..
We are both with B permit, no intention to ask for C, we both have very good salaries and we know we won't live in Switzerland forever(my job can send me everywhere at anytime).
Where could I find more information about taxes for married couples with B permit?

Thank you very much
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Old 16.01.2021, 14:53
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Re: Info on taxes for married couple

Two things you need to consider is taxes and inheritance.

For taxes your incomes will be added together to determine your incremental tax rate. Here the more you earn the higher the rate of taxation. The rates vary by Canton.

As non-Swiss you can write your wills to say the laws of your home country apply. If you don’t have a will Swiss law applies. There are a few threads here that explain why that may be contrary to your interests.

Well done for considering the consequences. Once you have made the decision, you can’t change it.
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Old 16.01.2021, 15:49
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Re: Info on taxes for married couple

For starters, you may want to compare the Quellensteuertarife for singles (A) and double-income (C).

I would think getting married will hardly be financial suicide, but I know someone who recently found out that getting divorced is.
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Old 16.01.2021, 18:00
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Re: Info on taxes for married couple

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we both have very good salaries
Very good salary means that at least one of you makes more than 120 k per year. In that case you would be regularly texted and the tax at source is just a pre-payment (if you paid more than owed you will get reimbursed, somewhen).

If you both make less than 120k and earn around the same amount per month you will get shafted with tax at source as it assumes a 40:60 income split. In that case you would have to do the math, or the "tax declaration", to find out if you have to request a reasesment of the tax at source. If you do so you will have to do a regular return.

In other words: You have to run the numbers and see what the financial impact will be.
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Old 17.01.2021, 01:09
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For starters, you may want to compare the Quellensteuertarife for singles (A) and double-income (C).

I would think getting married will hardly be financial suicide, but I know someone who recently found out that getting divorced is.
Where can I find it? I tried looking for taxes rate Zurich on Google but I keep find tax calculators like the ETH one that doesn't really tell me much for the double-income situation

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Very good salary means that at least one of you makes more than 120 k per year. In that case you would be regularly texted and the tax at source is just a pre-payment (if you paid more than owed you will get reimbursed, somewhen).

If you both make less than 120k and earn around the same amount per month you will get shafted with tax at source as it assumes a 40:60 income split. In that case you would have to do the math, or the "tax declaration", to find out if you have to request a reasesment of the tax at source. If you do so you will have to do a regular return.

In other words: You have to run the numbers and see what the financial impact will be.
The thing is, all that is taxes and stuff is taken care from my company trust agency, so I don't really know how taxes work, I just see what is deducted from my salary and I receive a resume at the end of the year.
So I don't really know how to check the numbers

Last edited by 3Wishes; 17.01.2021 at 21:58. Reason: merging consecutive replies
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Old 17.01.2021, 10:57
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Re: Info on taxes for married couple

Marriage will definitely not be your financial suicide. If anything, depending on which Kanton you live in, it will make a small difference, either positive or negative. It’s definitely not a major difference and gets quite difficult to calculate as you would need to consider tax and pension benefits/losses.

If you both earn good salaries, I would really really forget the tax angle and focus on all the other far more important discussions and points when considering marriage. I find marriage is often seen as quite old-fashioned and unnecessary here and squeezed in when the woman is 8 months pregnant. Try and define what is important for the two of you and then do it your way. I doubt minor tax fluctuations will come up high on your list of things to consider.
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Old 17.01.2021, 11:41
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Re: Info on taxes for married couple

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The thing is, all that is taxes and stuff is taken care from my company trust agency, so I don't really know how taxes work, I just see what is deducted from my salary and I receive a resume at the end of the year.
So I don't really know how to check the numbers
Ask your company fiduciary.

Tom
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Old 17.01.2021, 11:49
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Re: Info on taxes for married couple

If you are more worried about money than love - forget marriage...
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Old 17.01.2021, 11:52
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Re: Info on taxes for married couple

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Where can I find it? I tried looking for taxes rate Zurich on Google but I keep find tax calculators like the ETH one that doesn't really tell me much for the double-income situation
On the official website from the Canton Zurich:
https://www.zh.ch/de/steuern-finanze...---tarife.html

Let us assume you both make 108k gross (9k / month). In that case you are taxed at source on the gross income.

Pre marriage: Applicable tax rate is 10.60 % thus total tax burden is CHF 22'896 per year (no church affiliation, no kids).

After marriage: Applicable tax rate is 10.45 % thus the tax burden decreases.

Let us assume you both make 150 k gross, which means you will have to do a regular return and you are taxed on the net income after all deductions. W/o knowing all the details (age, place of work, place of residence, employer pension plan, global wealth, other applicable deductions etc.) this is a ball park figure at best. For simplicity we use the calculator on the federal website, assume place of resident in Zurich and age 35: https://swisstaxcalculator.estv.admi...ome-wealth-tax

This gives us a tax burden of around CHF 25’131 per person, or a total of around CHF 50'262.

Now we do it again for a married couple and we get a tax burden of CHF 60’103.
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Old 17.01.2021, 14:01
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Ask your company fiduciary.

Tom
We are not allowed to contact them directly nor using them for personal matters

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If you are more worried about money than love - forget marriage...
I honestly don't see how being worried about finance has to do with love.
Me and my boyfriend love each other deeply, and will keep doing the same, married or not.

It is not a piece of paper that will dictate the amount of love between each other.

The marriage is simply because we both lives outside our countries and have little to no interaction with our families and since we are not 20s anymore(especially him), we would like to offer the other the chance of taking part to important medical decisions and/or make sure they have a survivor's pension.

The question here is whether to get married now while we are in Switzerland, or wait a bit more.

Last edited by 3Wishes; 17.01.2021 at 22:00. Reason: merging consecutive replies
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Old 17.01.2021, 14:19
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Re: Info on taxes for married couple

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I honestly don't see how being worried about finance has to do with love.
Me and my boyfriend love each other deeply, and will keep doing the same, married or not.

It is not a piece of paper that will dictate the amount of love between each other.

The marriage is simply because we both lives outside our countries and have little to no interaction with our families and since we are not 20s anymore(especially him), we would like to offer the other the chance of taking part to important medical decisions and/or make sure they have a survivor's pension.

The question here is whether to get married now while we are in Switzerland, or wait a bit more.
Looks like you will have to pay a bit more tax, unless you give up work to have children. As men die younger & he is older than you it will likely pay off with a survivors pension taking a long term view. Waiting a bit would save money, if saving money is the primary objective. However if you get divorced you may get a bigger pension split if he earns more than you as it's based on time married.
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Old 17.01.2021, 14:23
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Re: Info on taxes for married couple

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On the official website from the Canton Zurich:
https://www.zh.ch/de/steuern-finanze...---tarife.html

Let us assume you both make 108k gross (9k / month). In that case you are taxed at source on the gross income.

Pre marriage: Applicable tax rate is 10.60 % thus total tax burden is CHF 22'896 per year (no church affiliation, no kids).

After marriage: Applicable tax rate is 10.45 % thus the tax burden decreases.

Let us assume you both make 150 k gross, which means you will have to do a regular return and you are taxed on the net income after all deductions. W/o knowing all the details (age, place of work, place of residence, employer pension plan, global wealth, other applicable deductions etc.) this is a ball park figure at best. For simplicity we use the calculator on the federal website, assume place of resident in Zurich and age 35: https://swisstaxcalculator.estv.admi...ome-wealth-tax

This gives us a tax burden of around CHF 25’131 per person, or a total of around CHF 50'262.

Now we do it again for a married couple and we get a tax burden of CHF 60’103.
Wow, that's very interesting
Thank you very much for the help and the links!
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Old 17.01.2021, 14:35
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Re: Info on taxes for married couple

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We are not allowed to contact them directly nor using them for personal matters
Why not?

Anyway, it's not a personal matter, it's a work related matter.

Tom
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Old 17.01.2021, 15:28
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Re: Info on taxes for married couple

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we know we won't live in Switzerland forever(my job can send me everywhere at anytime).
This. If suddenly you have to go and work in another country, it will be a lot easier to take your partner with you if you are married.
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Old 17.01.2021, 15:44
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Why not?

Anyway, it's not a personal matter, it's a work related matter.

Tom
Apparently the trust agency didn't appreciate us going directly to them with questions and made a complaint to our company about it, so now for every issue we have to go through our company's accountant and she will talk to them.

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Looks like you will have to pay a bit more tax, unless you give up work to have children. As men die younger & he is older than you it will likely pay off with a survivors pension taking a long term view. Waiting a bit would save money, if saving money is the primary objective. However if you get divorced you may get a bigger pension split if he earns more than you as it's based on time married.
Actually I am earning more than him and we have the agreement that if we get kids in the future, he will stay home or work from home/part-time.

We would like to save money and we thought about postponing the wedding in case the difference between single and double income taxation would be very significant.

Last edited by 3Wishes; 17.01.2021 at 22:06. Reason: merging consecutive replies; please use multiquote featue
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Old 20.01.2021, 14:05
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Re: Info on taxes for married couple

We recently got married, we are both working with comfortable salaries and we live in NE canton - meaning pretty much the worst case for taxes

Our taxes have gone up, but "financial suicide" is a bit dramatic . We pay more into our pensions to counteract the high taxes.
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