Living in Switzerland - Taxes & Charges

The above figures, which are taken from a pay structure survey by the Federal Statistical Office, are standardised and merely illustrative in character. The social security deductions include contributions to the old age and survivors’ insurance, invalidity insurance, unemployment insurance, loss-of-earnings insurance and occupational benefit schemes, etc.; they do not include compulsory health insurance contributions as these are not income-dependent, but vary according to the insurance company, place of residence and cover chosen.

In Switzerland, income tax is levied both by the Confederation (direct Federal tax) and by the cantons and municipalities (cantonal and municipal taxes). Each of the 26 Swiss cantons has its own tax legislation, so that the tax payable varies from canton to canton. As a rule, taxpayers must file an annual tax return. The relevant tax factors (income and assets) and the amount of tax payable are determined on the basis of this return.

Apart from income tax, which may also be deducted at source for EU citizens, another important tax is value-added tax (VAT), which is currently charged at 7.6% on most goods and services. Other taxes levied in Switzerland include wealth tax, vehicle tax and the annual motorway sticker charge.

Text last edited on: 04/2008

Source: European Union
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