These are Switzerland’s tax hells and havens

Tax office mail can be the most unwelcome. However, looking at the tax bill is not the same in every municipality. There are big differences depending on where you live. When comparing the most expensive and cheapest places to live, in extreme cases, taxes can be x-folded as “Tages-Anzeiger” breaks down in today’s edition.

Taxpayers have to dig deep into their pockets, especially in western Switzerland. But a canton also stands out here: Whether you are a retired couple, a single family or a family with two children, Neuchâtel ranks high in the most expensive municipalities for almost all house types.

Single retirees pay more

In Enges NE and Les Verrières NE, a single household with an income of CHF 100,000 pays 19.97 percent to the tax authorities. All 19 of the most expensive municipalities are in Neuchatel. Finally, in the canton of Bern, rebuke ranks 20th with 19.04 percent. Anyone who earns 100,000 will experience Swiss tax hell in Neuchâtel, Bern and Valais.

In the case of single-person households with incomes above 150,000 francs, the Neuchâtel phalanx is finally broken by several Valais communities. In Leukerbad VS, more than 57,000 francs must be transferred to the authorities for a fee of 200,000 francs. Everyone who earns half a million and lives in Schelten BE pays around 180,000 francs in tax.

It is even more expensive for single retirees. In Schelten BE, the most expensive municipality, 203,500 francs go to the Treasury with an annual income of half a million.

The differences with the cheapest municipalities are huge: a single person with an income of 100,000 francs pays 6.04 percent to the authorities in the Baar ZG – not even a third compared to many Neuchâtel municipalities. Zug is often a tax haven. But from 150,000 francs, life is the cheapest in the canton of Schwyz in terms of taxes. For example, in Feusisberg SZ, at least 9.06 percent must be paid to the tax authorities.

Schwyz lures with tax cuts

Families live particularly cheaply in Zug. With a household income of CHF 150,000, only 2.15 percent tax has to be paid in Baar ZG. The same family pays 14.18 percent in Enges NE – almost seven times more. But even in Solothurn or Bern, this family sometimes had to give the tax authorities between 13 and 14 percent.

What the “Tages-Anzeiger” data analysis also shows: Anyone who already lives in a tax haven can expect more tax breaks. For example, many low-tax municipalities in Zurich and Zug lowered taxes even further last year.

In contrast, the canton of Schwyz had particularly generous tax breaks. In Unteriberg SZ, a family with two children and an income of CHF 150,000 now pays tax of CHF 9,200, which is almost 10 percent less than in the previous year.