Income taxation in various cantons of Switzerland 2013

including canton, municipality, and church tax

Gross labor income in 1'000 CHF
15 - 20

20 - 30

30 - 40

40 - 50

50 - 60

60 - 80

80 - 100

100 - 150

150 - 200

marginal taxation in %
Cantons*
Geneva
St. Gallen
Zug
Zurich
Direct federal tax rate

7.5
2.5
5.5

4.4
12.8
4.2
7.2

15.4
14.9
4.8
9.8

18.1
19.3
5.1
10.7

20.2
20.3
6.4
13.4

23.1
21.9
6.9
15.3

23.6
23.2
10.7
16.9

24.2
23.7
15.5
18.7

25.1
24.0
12.1
22.1

0.6

0.7

0.8

2.2

2.5

4.5

6.8

9.5

60

80

100

150

Gross labor income in 1'000 CHF

15

20

30

40

50
average taxation in %

Cantons*
Geneva
St. Gallen
Zug
Zurich
Direct federal tax rate

0.2
0.2
1.3

0.1
1.9
0.7
2.4

1.6
5.5
1.9
4.0

5.0
7.9
2.6
5.4

7.6
10.2
3.1
6.5

9.7
11.8
3.7
7.6

13.1
14.3
4.5
9.5

15.2
16.1
5.7
11.0

18.2
18.7
9.0
13.6

0.2

0.3

0.4

0.7

1.2

1.8

3.5

* Calculations for canton capital cities

Source: ESTV (2014) Steuerbelastung in der Schweiz: Kantonshauptorte Kantonsziffern 2013. www.estv.admin.ch

Effective tax rates on labor, 2013

EATR

Germany
France
Italy
Japan
Austria
Switzerland
USA

EMTR

(1)

(2)

(3)

(4)

(3)

(4)

19.1
14.6
21.5
7.7
16.2
10.9
16.9

20.4
13.8
9.5
13.9
18.1
6.3
7.7

39.5
28.4
31.0
21.6
34.3
17.2
24.6

49.3
48.9
47.8
31.6
49.1
22.0
31.3

52.2
43.6
39.4
27.3
49.1
25.8
39.3

60.0
59.7
54.1
36.6
60.6
30.1
43.6

(1) income tax; (2) social security contribution employee; (3) total for employee, without transfers;
(4) total inlcuding SSC by employer, without transfers; EATR - effective average tax rate;
EMTR - effective marginal tax rate; (1) - (3) as % of gross wages, (4) as % of labor costs;
Computed for a single individual with average income
Source: OECD (2043), Taxing Wages 2014. (Tables 0.2, 0.3, I.6., I.7.)

Income tax plus employee and employer social security

contributions (as % of labor costs) 2013

Decile
Wage shares
Denmark
France
Germany
Italy
UK

Switzerland

OECD average

Marginal tax rates

Denmark
France
Germany

Austria

Germany
0

10

20
Income tax

Quelle: OECD (2014), Taxing Wages 2014, Paris. (Table 0.2)

30
SSC Employee

40
SSC Employer

50

60

Total Tax Wedge

2013 (as % of labor cost)
0

10

Belgium
Germany
Austria
France
Italy
Finland
Sweden
Czech Republic
Slovenia
Greece
Portugal
Slovak Republic
Spain
Denmark
Norway
Luxembourg
Netherlands
Poland
Japan
United Kingdom
United States
Canada
Australia
Ireland
Switzerland
New Zealand

Source: OECD (2014), Taxing Wages 2014. (Table 0.1)

20

30

40

50

60

Income tax plus employee and employer contributions (as % of labour

costs), 1979-2013
60
50
40
30
20
10
0

1979 1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Austria
Source: OECD (2014), Taxing Wages 2014. (Table II.2a)
Switzerland: Data before 2000 not comparable

Germany

Switzerland

EU - 15

Income Tax
(in % of gross wage), 1979-2013

30
25
20
15
10
5
0
1979

1983

1987

1991

1995

Austria

1999

2001

Germany

Source: OECD (2014), Taxing Wages 2014. (Tables II.2b and D.2)
Note: Different definition of gross wages was used from 2000 onward.

2003

2005

Switzerland 11

2007

EU - 15

2009

2011

2013

Wage shares and tax rates across earnings deciles

Decile

10

Mean

0.04
0.03
0.02
0.03
0.02

0.06
0.05
0.05
0.06
0.04

0.07
0.06
0.07
0.07
0.05

0.08
0.07
0.08
0.08
0.07

0.09
0.08
0.09
0.08
0.08

0.09
0.09
0.10
0.09
0.09

0.10
0.10
0.11
0.10
0.11

0.12
0.12
0.13
0.12
0.13

0.14
0.15
0.15
0.14
0.16

0.22
0.26
0.22
0.23
0.25

0.10
0.10
0.10
0.10
0.10

Marginal tax rates

Denmark
0.65
France
0.53
Germany
0.64
Italy
0.52
UK
0.39

0.65
0.73
0.66
0.57
0.48

0.65
0.65
0.68
0.60
0.50

0.66
0.59
0.67
0.58
0.53

0.65
0.59
0.68
0.61
0.48

0.65
0.61
0.67
0.60
0.47

0.69
0.60
0.68
0.64
0.46

0.71
0.61
0.68
0.64
0.46

0.73
0.63
0.65
0.62
0.42

0.73
0.67
0.57
0.64
0.51

0.68
0.62
0.66
0.60
0.47

tax rates
0.84
0.80
0.68
0.72
0.53
0.65
0.52
0.53
0.39
0.44

0.77
0.73
0.69
0.53
0.50

0.78
0.73
0.71
0.54
0.51

0.74
0.71
0.71
0.54
0.52

0.73
0.71
0.71
0.54
0.50

0.73
0.71
0.70
0.55
0.52

0.72
0.70
0.71
0.56
0.51

0.70
0.70
0.71
0.56
0.50

0.71
0.71
0.67
0.57
0.49

0.75
0.71
0.68
0.54
0.49

Wage shares
Denmark
France
Germany
Italy
UK

Participation
Denmark
France
Germany
Italy
UK

Source: Kleven and Kreiner (2006): "The marginal cost of public funds: Hours of work versus labor force participation",
Journal of Public Economics 90, 19551973