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Municipal tax rate: you pay the least tax here

The Tax rate of the municipality is a decisive factor in the amount of tax you owe to the municipality and the canton. This is because it is a multiplier that defines what percentage of the state tax you have to pay.

In this article, you will learn how the tax rate is used to calculate taxes. You will also find some examples of municipalities with particularly low tax rates and in total Favourable tax cantons.

What is the municipality's tax rate?

The Tax rate is a Multiplierwhich indicates what percentage of the cantonally determined state tax you actually have to pay in your municipality. It determines the amount of council tax and varies depending on the municipality.

The tax rate is expressed as a percentage (e.g. 125 %) or as a factor (e.g. 1.25) and multiplied by the simple state tax to calculate the municipal tax owed. This simple state tax is the same in all municipalities of a canton, but the tax rate allows the municipalities to adjust the tax amount individually.

ExampleIf your basic state tax is CHF 2,000 and the tax rate in your municipality is 125 %, you will pay a total of CHF 2,500 in municipal taxes.

Municipal tax rates are applied to the Income and assets of private individualsbut also in the profit and capital of companies.

Example of tax rate calculation

Let's assume you have a taxable income of CHF 50,000. This does not correspond to your net income, but is the result after you have made all deductions and added other income, such as dividend payments.

Assumed, the simple state tax amounts to 5%what CHF 2'500 (CHF 50,000 x 0.05). You must now multiply this amount by the tax rate. If the tax rate is 100%, then you only have to pay exactly the simple state tax at municipal level.

However, let us assume for the purposes of this example that the Tax rate of the municipality is 125%then this results in a tax burden of CHF 3‚125 (CHF 2,500 x 1.25).

However, if you now live in a municipality with a particularly favourable municipal tax rate, the tax rate could also be 40%, for example. In this case, you would only have to pay CHF 1,000 to the municipality (CHF 2,500 x 0.4).

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Which municipality has the highest tax rate?

When it comes to taxes, there are not only Strong cantonal differencesthe tax rate can be also vary greatly among the municipalities within a canton. Most municipalities have a tax rate of over 100% for private individuals. However, there are also some with a significantly lower rate. Here are some examples of the most favourable municipalities in various cantons for the tax rate declaration:

  • Canton of Graubünden: Municipality of Rongellen (30 %)
  • Canton of Basel-Landschaft: Municipalities of Bottmingen & Pfeffingen (45 %)
  • Canton Aargau: Municipality of Oberwil-Lieli (48%)
  • Canton Zug: Municipality of Baar (51%)
  • Canton Glarus: Municipality of Glarus (56%)
  • Canton of St. Gallen: Municipality of Balgach (61%)
  • Canton Solothurn: Municipality of Kammerohr (65%)
  • Canton of Zurich: Municipality of Kilchberg (72%)
 

Depending on the situation, there is also a tax rate for the Church taxes to this. (More on the topic here Church exit). In addition, most cantons also levy a cantonal tax rate that is the same for all municipalities.

At Canton of Basel-Stadt however, there are No municipal taxesbut this is already included in the cantonal taxes.

Tax rate calculator Switzerland

With the following tax rate calculator you can calculate the tax rate of your municipality in the current year, determine your personal tax rate throughout Switzerland or the state tax rate and tariff, and even obtain information about the church deductions:

Municipal tax rate: You pay the least tax here 2
FTA tax calculator

Comparison of tax rates in Switzerland: Which cantons are considered tax havens?

The classic tax haven is the Canton of Zug. The tax burden is determined not only by the tax rate, but also by the level of simple state tax and federal tax. In addition, the Income taxes is progressive in most cantons. This means that the higher your salary, the more you have to pay as a percentage.

If you have a taxable income of CHF 100,000, in the cantons of Zug, Schwyz, Nidwalden and Appenzell Innerrhoden only around 15% taxes pay. In the canton of Zug, the tax burden rises to a maximum marginal tax rate of around 22%. In the canton of Schwyz, it is as low as 20%.

Tax rate cantons comparison

Other readers have asked for a tax rate map of Switzerland. On the following map you can see the result of the tax rates per canton or municipality in the form of the actual tax burden for natural persons.

Municipal tax rate: You pay the least tax here 3
Map of tax rates throughout Switzerland: Tax rate Switzerland cantons

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Conclusion on the municipal tax rate

The tax rate of a municipality is a Multiplierwhich is connected to the multiplied by the simple state tax must be paid. The simple state tax is set by the canton and is identical for all municipalities in this canton. However, the tax rate gives the municipalities the freedom to choose a higher or lower rate depending on their needs.

Depending on the canton, there is also a municipal tax rate in addition to the municipal tax rate. standardised cantonal tax ratewhich must be added in each case. This is why a low municipal tax rate is not necessarily meaningful.

If you are looking for the most tax-efficient municipality, you need to look at the overall tax burden. The easy State tax in the cantons of Zug and Schwyz for example very deep and the Progression also low. This means that you pay a below-average amount of tax even if you have a higher income. In our article on the topic Save taxes Switzerland you can find out more about this topic.

FAQ

The tax rate in Switzerland is a percentage that is applied to the simple cantonal state tax. Each municipality sets its own tax rate, which means that the effective tax burden varies depending on where you live.

The tax rate indicates what percentage of the basic state tax you have to pay in your municipality. The tax rate can vary depending on the municipality and canton.

The tax rate of the municipality is added to the cantonal simple state tax. If the tax rate of a municipality is 120%, this means that you have to pay 120% of simple state tax.

The tax rates in Switzerland's cantons and municipalities vary greatly. Cantons such as Zug or Schwyz generally have lower tax rates, while cantons such as Basel-Stadt or Geneva tend to have higher tax rates.

A tax rate of 119% means that you have to pay 119% of simple state tax. This increases your total tax burden by 19% above the cantonal property tax.

A tax rate of 60% means that you only pay 60% of basic state tax, which is a very low rate compared to most municipalities.

The municipalities with the highest tax rates in Switzerland change every year, but typically the highest tax rates are found in structurally weak or highly indebted municipalities.

Yes, there are maps that compare the average tax rates of the cantons and municipalities in Switzerland. These clearly visualise which cantons and municipalities have a higher or lower tax burden.

A tax comparison between the cantons shows that cantons such as Zug, Schwyz and Appenzell Innerrhoden are among the most tax-favourable, while cantons such as Basel-Stadt, Geneva and Vaud levy higher taxes.

In St. Gallen, the municipality of Balgach is considered to be particularly tax-favourable with a very low tax rate compared to other municipalities in the canton.

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