My question is the following:
If I am married and with my permanent job, my wife also start working with minimal salary only (stundenlohn 10%). Will we earn less with the tax changes Than previously I earned alone?
Hi all,
You'll earn more together, but you may well pay more taxes and thus reduce your overall income.
There are ways of mitigating this. E.g. babies. But they definitely reduce your residual income.
You will earn more.
Taxes won't change much unless you both earn the same.
In any case, you will have more than if only you work.
Tom
But you will not earn less after taxes than if you were the only earner.
Tom
For married couples, the tax rate is determined by your total income (your and your wife's added together) and not by the income of each partners.
Therefore, the relatively small income that your wife earns will be taxed at a higher rate than it would be if she was unmarried, this will not, however, result in you having less money than if she didn't work at all.
A quick internet search tells me that the average income tax rate in Switzerland is about 17%. This might mean that your wife would pay about that (depending on your income) on her earnings, instead of probably paying nothing (income tax is zero on small income).
Like everyone said, you may pay more taxes but you will earn more and on top, your wife will contribute at least to AHV which also gives a levelmof insurance etc.
It's a really good thing!
Thanks for the answers...
Even of She earns only 200-300 chf/month at least wave Will have a bit more at the end of month
Some Cantons will split the income but not Zurich unfortunately - details are here https://www.zh.ch/content/dam/zhweb/...ersystem_d.pdf (p79)
What is "splitting"?
In a splitting procedure, the spouses' incomes are added together. To determine the applicable tax rate, however, this total income is divided by a specific divisor (by 2 for a full split and by 1.1 to 1.9 for a partial split). The total income of the couple is then taxed at this – usually much lower – tax rate.
Splitting procedure:
The cantons of SZ, NW, GL, FR, SO, BL, SH, AI, SG, GR, AG, TG, NE and GE use full or partial splitting. The spouses' total income is taxed at the rate that would apply to
• 50% of total income: FR, BL, AI, SG, AG, TG and GE (full splitting);
• 52.63% of total income: SZ, SO, SH and GR (divisor 1.9);
• 54.05% of total income: NW (divisor 1.85); • 55% of total earnings: NE (divisor 1.81);
• 62.5% of total income: GL (divisor 1.6).
A total income of, for example, CHF 100,000 is thus taxed in FR, BL, AI, SG, AG, TG and GE at the rate applicable to CHF 50,000, in SZ, SO, SH and GR at CHF 52,630, in NW for CHF 54,000, in NE for CHF 55,000 and in GL for CHF 62,500.
Overall you will have more money, and a better safety net
Also note the following additional deductions for two-income families in Ct. Zurich:
Ct. Zurich:
Max. 5'900
Bund:
Min. 8'100
Max. 13'400
To determine the impact of two spouses working, it would likely be worthwhile to prepare a proforma tax return.