Tax progression
Progressive
Many taxes are progressive, for example income tax. Progressive means that the higher the income, the higher the tax not only increases in francs and centimes, but also as a percentage.
Example:
Income tax as a % of income in the canton of Zurich (incl. federal tax)
Assumption: Single, no children, non-denominational
The same in tabular form.
Income | Tax in per cent | Tax in francs |
CHF 25’000 | 4% | CHF 1,038 |
CHF 50,000 | 9% | CHF 4’373 |
CHF 100,000 | 16% | CHF 15,746 |
CHF 250,000 | 28% | CHF 69,137 |
CHF 500,000 | 35% | CHF 173’119 |
Linear
The opposite of progressive is linear. In certain cantons, capital withdrawal tax is linear. The same tax rate is always applied regardless of the amount of capital withdrawn.
Example:
In the canton of Glarus, a tax of 4 % is paid on capital benefits from pension schemes (excluding the federal government):
And here in table form:
Capital withdrawal | Tax in per cent | Tax in francs |
CHF 25’000 | 4% | CHF 1,000 |
CHF 50,000 | 4% | CHF 2’000 |
CHF 100’000 | 4% | CHF 4’000 |
CHF 250’000 | 4% | CHF 10’000 |
CHF 500,000 | 4% | CHF 20’000 |
However, the federal tax on capital withdrawals is progressive. This is the reason why the overall capital withdrawal tax in the canton of Glarus is also slightly progressive.
Year | Asset development |
1 | 100’000 |
2 | 99’500 |
3 | 99’003 |
4 | 98’507 |
5 | 98’015 |
6 | 97’525 |
7 | 97’037 |
8 | 96’552 |
9 | 96’069 |
10 | 95’589 |
11 | 95’111 |
12 | 94’635 |
13 | 94’162 |
14 | 93’691 |
15 | 93’223 |
16 | 92’757 |
17 | 92’293 |
18 | 91’832 |
19 | 91’372 |
20 | 90’916 |
21 | 90’461 |
22 | 90’009 |
23 | 89’559 |
24 | 89’111 |
25 | 88’665 |
26 | 88’222 |
27 | 87’781 |
28 | 87’342 |
29 | 86’905 |
30 | 86’471 |