Do you know your marginal tax rate?

  • What’s your marginal tax rate (pick closest)?
  • 20%
  • 25%
  • 30%
  • 35%
  • 40%
0 voters

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 you’re 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!

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Hehe, I think I know where it is coming from. 20% is close to my household’s 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.

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You might want to change the income to taxable income : net income - deductions listed on last tax declaration.

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Why? The deductions reflect our personal tax situation. I leave the whole thing as it is, just add a bit more income at the input end.

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Steuerrechner | Steuern berechnen | Allianz
This calculator might be useful :slight_smile:

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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.

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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.

grafik

My previous comment was meant for @PhilMongoose So that people calculate their actual margin tax rate correctly.

Where do you find the exact thresholds and rates for federal and cantonal taxes? Bonus points if they go back several years… :laughing:

I picked them from the official resrouces and updated once in a while. Doesn’t change a lot. See for example here for federal tax or here for Zurich. Use “Steuertarife” for an online search.

The link provided by @UACcorp seems even better. It has the data under “basic data”, “tax rates” in incremental steps and for several years. It’s a great resource, I wonder if that was already available a few years back.

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You can also use this calculator
I always use „taxable income“ section

It tells you your total tax but also marginal tax.

https://taxes.helvetia.vlot.ch/v1/taxes/incometax?utm_source=website&utm_content=steuerchecks-pv

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Here’s Aargau

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Normally just type “steursatz ‘name of canton/gemeinde’” 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?

I tagged a link which has this information incorporated in their tool

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There are, in ESTV’s tax calculator linked above :wink:
It’s not including 2024 rates, yet, though.

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I see it now. It seems you select the year, data you want. I don’t see a ‘download all’ kind of feature.

Although I can’t 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:

and match it with the calculator here: Menu-NP-Ord.jsp

Your friendly tax office :smiley: Seriously, I got curious, didn’t even know some places have splitting in place.
Found this Excel on their page which includes the formulas. Matches with the calculator online.

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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, I’ve 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!

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