Differences between communities are so great that this is Switzerland’s tax hell

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It weighs less than 20 grams, but it’s easy on the stomach: The letter from the tax administration is understandably more disappointing than joyful for Swiss families. Many Swiss people are forced to transfer several months’ salary to the state. But looking at the tax bill is not equally painful in every society. There are huge differences depending on where you live. When comparing the most expensive and cheapest places to live, in extreme cases the tax amount can be x times higher, as “Tages-Anzeiger” was overturned in today’s edition.

A single-person household in Enges NE and Les Verrières NE with gross employment income of 100,000 francs will receive a 19.89 percent deduction from the tax authorities for 2023. Municipal, cantonal and federal taxes are taken into account, but not church or wealth taxes. As last year, the 19 most expensive municipalities are all in Neuchâtel. Finally, Schelten, located in the canton of Bern, ranks 20th with 18.97 percent. Singles with incomes of 100,000 francs experience Swiss tax hell not only in Neuchâtel, but also in Bern, Valais and the Solothurn community of Bolken.

Big differences with tax havens

In the case of single households with incomes of 150,000 francs, the Neuchâtel phalanx is finally broken by several Valais communities. Enges and Les Verrières are also in the top two places with 24.32 percent. This is closely followed by the municipalities of Leukerbad VS and Grächen VS. The two Valais municipalities see even bigger gains for top earners with a salary of 200,000 francs. Leukerbad is at the top with 28.13 percent, just ahead of Grächen.

The difference with tax havens is huge: In Baar ZG, single-person households with an income of 100,000 francs deduct only 5.84 percent to the tax authorities. The 39 cheapest municipalities are all in the cantons of Zug and Schwyz. In Illgau SZ, 9.74 percent of gross wages must be transferred to the authorities. In Freienbach SZ, 12.36 percent of a 200,000 franc salary goes to taxes. Here too, only the municipalities of Zug and Schwyz are in the top 30. Since the two cantons are very popular among high-income earners, residents pour a large part of the money they save into the real estate sector through rent.

Families with incomes of 80,000 francs pay nothing here

As a married couple with two children and a household income of 150,000 francs, the cheapest place to live from a tax perspective is Baar ZG. If both parents contribute about half the income, taxes would be a modest 2.07 percent. Even if the household income is 250,000 francs, only 7.23 percent of it goes to the tax authorities.

In the canton of Neuchâtel, families with a household income of 150,000 francs pay seven times more taxes than in tax havens. 14.13 percent will mature in Enges and Les Verrières. There is also tax hell for families in the cantons of Neuchâtel and Bern. For a family income of 250,000 francs, the picture is almost the same: in the most expensive municipalities, married couples with two children pay 21.67 percent of their salary to the tax office.

Tax havens also care about families with low household incomes: in Baar, Cham, Hünenberg, Menzingen, Neuheim and other Zug municipalities, a married couple with two children pays no tax as long as they find an affordable apartment. The figures apply to households where one parent contributes 70 percent of the income and the other contributes 30 percent. The same family transfers 6.79 percent of their salaries to tax authorities in various municipalities in Bern; The top spot goes to the municipality of Schelten.

Source :Blick