I see on here people using very low tax rates as their marginal tax rates. Which leads me to wonder whether they are calculating this correctly.
Do you know what your marginal tax rate is? The marginal tax rate is the rate at which your last CHF of income is taxed at. Most importantly, this is not the same as your average/effective tax rate!
Where I live, a single person already has a marginal tax rate of 20% with a taxable income of only 39k.
taxable income
marginal tax rate
39k
20%
60k
25%
90k
30%
130k
35%
150k
40%
So if youâre doing your calculations to find value of a tax deduction, make sure that your tax savings represent your saving at the correct marginal rate, otherwise you might be under-valuing the tax benefit!
Hehe, I think I know where it is coming from. 20% is close to my householdâs actual marginal tax rate (2 children) and it is an intentional underestimation of tax savings in many cases, just to explore the effects, not to try to estimate actual savings.
I think the simplest way to calculate the marginal tax rate is to run a tax calculation with, say, 1000 CHF higher income as your actual one. The increase of the tax divided by 1000 CHF is your marginal tax rate.
I like to keep information about margin tax rate and effective tax rate overall for each year. A good indication and good comparison. Looking at real estate and moving, I made a list of ~12 municipalities and calculated margin + effective rates at 5 different (joint) income levels and compared. Not the primary factor but factor nonetheless. Both tax rates are important to keep in mind.
Go back and change the entries for income level and zip code, keeps deductions like kids.
Maybe not the simplest way, but I looked up the thresholds to compute it exactly, see illustrative example below. Then add it up with a simple lookup formular and chart the area or granularity relevant to you.
I picked them from the official resrouces and updated once in a while. Doesnât change a lot. See for example here for federal tax or here for Zurich. Use âSteuertarifeâ for an online search.
The link provided by @UACcorp seems even better. It has the data under âbasic dataâ, âtax ratesâ in incremental steps and for several years. Itâs a great resource, I wonder if that was already available a few years back.
Normally just type âsteursatz âname of canton/gemeindeââ and you get the local tax administration website. They typically have tables for a few years.
Though maybe there are free providers who have collected this information somewhere in a database already?
Although I canât figure out the formulas e.g. looking at BL, can anyone give an example how to use the formulas to work out tax due e.g. if you earn 120k:
Your friendly tax office Seriously, I got curious, didnât even know some places have splitting in place.
Found this Excel on their page which includes the formulas. Matches with the calculator online.
I only checked briefly, but also only noticed single Kanton, single year, no export all. Still more convenient compared to looking through PDFs for the numbers needed
Annoyingly, Iâve seen that excel before but forgot about it. The difference I had was in the formulas they use natural log, but on the website they say log (which I take to mean base 10). The other annoying thing is that this caught me the last time I looked at it and I just forgot!
Durch das Lesen und die Teilnahme an diesem Forum bestÀtigst du, dass du den auf http://www.mustachianpost.com/de/ dargestellten Haftungsausschluss gelesen hast und damit einverstanden bist.
Seriously, I got curious, didnât even know some places have splitting in place.