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Glossary

Income Tax

Income Tax is the general tax on the income of natural persons. In Switzerland it is levied simultaneously on three levels by the Confederation, the cantons and the municipalities. The basis of assessment is net income, derived from the sum of all earnings less the permitted expenses and the general and social deductions. The tariffs are generally progressive, meaning the rate rises as income increases.

At a glance

01

The Confederation, cantons and municipalities levy income tax simultaneously; the direct federal tax is governed by the DBG and cantonal harmonisation by the StHG.

02

The taxable base is net income, that is all earnings after deducting permitted acquisition costs, general deductions and social deductions.

03

The tariffs are progressive, with the marginal rate rising as income increases.

Frequently asked questions

Income tax is levied simultaneously by the Confederation, the cantons and the municipalities. The Confederation levies the direct federal tax under the DBG, while cantons and municipalities levy their own income taxes under cantonal law within the framework of the StHG. This results in a combined burden across three levels for every taxpayer.
Taxable income is net income, that is the sum of all earnings from employment, assets and other sources, reduced by deductible acquisition costs, general deductions and social deductions. The progressive tariff is only applied to this amount.

Part of the topic

Steuern (privat)

Sources: Eidg. Steuerverwaltung (ESTV) · Systematische Rechtssammlung (fedlex)