Witholding Tax - 'Marriage Penalty'

Finance, Taxes, Banking, Insurance and Retirement
1
I know, I know ... but am I allowed to say I find it hard to make my heart bleed

2
Btw, not all cantons really have the marriage penalty. Take a look here:

https://www.estv.admin.ch/dam/estv/d...handlung_d.pdf

And this calculator: http://tagi.dwcdn.net/36NV2/3/

If I'm reading the graphs correctly, SZ for example doesn't penalize equal double earners. In ZG you'd be even rewarded at moderate (< 150k each) income levels. In both cantons you'd save significantly on taxes compared to ZH regardless of whether you marry or not.

So I think it's really worth considering changing the canton before the end of the year in your case. You'd both save on crazy high Zurich city taxes for 2016 (per another thread) and could get rewarded for marrying in another canton tax-wise

3
I have calculated that the price you will pay is 5.30% more in taxes, when you are on a joint salary of Fr 230'000

Many people on the average salary of Fr 70'000 would love to have your problem.

Remember, the tax laws apply to everyone, you have not been singled out for special taxes.

4
It's an unfairness, but all tax systems have unfairness. Consider the UK where a couple with one earner on £50K pays far more tax than a couple with two earners each at £25K. The former didn't get child credits, but the latter did!

As a soon to be DINKie again (kids leaving home), I still prefer the Swiss system.

5
If there's anything worse than tom's jokes, it's people who don't get them.

6
there isn't.

7
Before considering a canton change to save taxes... if you are looking at SZ, you might want to wait until the dust settles.

Under the current tax regime taxes are set to rise. Last year's increase was significant, and there is talk of another.

Additionally, a referendum is on the table to reform the tax system - a flat tax, with a doubling of the Vermoegensteuer. If this passes, who knows what the final tax system will look like.

230K falls into the 'middle income' bracket in terms of the tax reform debate. Depending on which political party you listen to you may or may not be happy with the results. Politically, the middle is spoken of as 50K-300K... but given the huge difference in that range perhaps arguments being bandied about are rather disingenuous.

SZ will remain tax friendly (Well, friendlier than some other cantons. Only the Aussersschwyz Gemeinden are low tax, the rest of the canton is not particularly tax attractive.) no matter what the outcome of the upcoming vote, but if you are seriously 'tax shopping', perhaps wait until you can at least evaluate what you are buying.

According to the polls, the vote will probably go against the intiative.

The vote is 25 Sept - but whatever happens it will take time for the dust to settle and new tax rates, whatever they are, to be implemented.

8
I tell you what my tax adviser told me: " either get a kid or divorce"

my wife was not pleased

9
The calculator I linked to can automatically calculate AHV and ALV based on your income. But it cannot calculate pillar 2/BVG (pension fund) as it depends on your age and on the pension plan of your employer. Even if you would tell me your age the pension plan of your employer is still a big unknown.

Check your and your future wives monthly pay check summary how much goes each month in the pension pot.

10
Well you can always change the canton next year AGAIN if the vote turns out to your dissatisfaction. That's the advantage of Swiss perpetual renters lifestyle. You're taxable just in the canton as of end of the year

11
I can assure you working less, earning less money & paying less tax will give you a far better quality of life. I stopped working at 52 & my taxes reduced by 95%. Just got married last Saturday & now trying to get my new wife to stop working too.

12
congrats

13
Or invest in a loss-making commercial partnership

14
Congratulations FMF!!!

So someone finally managed to pin you down, eh?

15
I actually heard yesterday of a couple who got divorced for tax reasons but they still live with each other etc.