Taxable Income

Taxable income is the portion of a taxpayer’s income on which they are required to pay income tax. In Switzerland, taxable income forms the tax base used to calculate income taxes applicable to individuals. Tax schedules list the direct federal tax, cantonal income tax (also called state tax), and municipal income tax due based on taxable income.

Taxable income is determined based on information provided in cantonal tax returns after these are reviewed by tax officials and corrected when required. It is made up of all income which is taxable in Switzerland, minus possible deductions. Federal and cantonal tax offices have clear guidelines which must be followed when calculating taxable income. The number of available tax deductions varies between cantons, as do the sizes of deductions.

Taxable income is calculated twice for each taxpayer: Once for cantonal and municipal tax purposes (relevant to cantonal tax and municipal tax) and once for federal tax purposes (relevant to the direct federal tax). Federal taxable income can differ from cantonal and municipal taxable income.

More on this topic:
Swiss federal income tax calculator

Request now for free

Leading credit cards

Free credit card

Migros Cumulus Visa

  • No annual fees

  • With Cumulus points

  • Without foreign currency fees

Free credit card

Swisscard Cashback Cards Amex

  • No annual fees

  • Two cards Amex & Visa/Mastercard

  • With cash back

Deal of the Day
×
Free credit card

Migros Cumulus Visa

No annual fees

Trading platforms

Brokers with low fees

International trading platform

eToro

  • Thousands of international and local stocks

  • Award-winning trading platform

  • The information provided in the advertisement constitutes a promotion for shares. Your capital is at risk.

Request now for free

Cheap bank accounts with card

Online private account

UBS key4

  • 50 KeyClub points as a welcome gift

  • Online private account with debit card

Free bank account

Yuh

  • No account fees

  • Banking partner: Swissquote & Postfinance

  • CHF 20 trading credit with code «YUHMONEYLAND»

Swiss digital bank

Alpian

  • CHF 75 welcome bonus with referral code LAND25.

  • Favorable foreign exchange rates

  • Multi-currency account with Visa card (CHF, EUR, USD, GBP) 

Editor Daniel Dreier
Daniel Dreier is editor and personal finance expert at moneyland.ch.