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 The same tax rate is always applied regardless of the amount of capital withdrawn.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