When is your tax exemption day

Federal government calculates "tax exemption day"

A new calendar from the Swiss Federal Tax Administration shows the day on which the residents of Switzerland processed their taxes and can use their income for themselves. This has calculated the “tax exemption day” for around 2500 municipalities.

On January 16, the average Zug resident earned enough to pay federal, cantonal, communal and church taxes. From now on, his income will only benefit him. For most other people, that day doesn't come until February: In Neuchâtel, the bottom of the canton's capitals, the residents work for the state until February 23.

The federal government is publishing information of this kind in a calendar for the first time, as the Federal Tax Administration (FTA) announced on Tuesday. Accordingly, the residents of 16 cantonal capitals have already worked out the taxes on Tuesday and are therefore tax-free.

Huge span

For several life models with and without children, the FTA lists the “tax exemption day” in tables and calendars, each for incomes between CHF 20,000 and CHF 1 million. The calculations are based on the 2011 tax burden.

A look at the evaluation shows the considerable differences between the municipalities. In low-tax communities in Zug or Schwyz, a couple with two children and 100,000 francs gross income paid taxes after just ten days. In the Jura and Neuchâtel it takes four times longer. Because of the progression, the corks for the “Day of Tax Exemption” for high-income taxpayers do not pop until later: A married couple without children and with a gross income of CHF 500,000 works for the state until May, depending on the canton.

Without social security

The ranking is based on the “Tax Freedom Day” published by consulting firms such as PricewaterhouseCoopers and other institutes. However, this is significantly later in the year because the calculation method differs. Most recently, the Finance Department calculated April 14th as “Tax Freedom Day” for Switzerland in 2008.

For the sake of simplicity, the tax and contribution burdens of residents and companies are used for “Tax Freedom Day” and compared with the gross domestic product (GDP). In its new calculation, the FTA considered the situation of residents.

On the other hand, it limited itself to pure taxes and disregarded social security contributions. This means that the people of Zug processed their taxes on January 16, but they work even longer for contributions to the AHV / IV and unemployment insurance. In addition, there is the health insurance premium, which is paid to private insurers and therefore does not appear.

The FTA also emphasizes that the list does not provide any information about the services that citizens receive in return for their taxes. Individual tax optimization tricks, which can reduce the burden, are also not taken into account.