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.
Swiss federal income tax calculator