Salary rate
Annual
Month
Semimonthly
Weekly
Day
Hour
Withholding
Salary
CHF 50
Total tax
0
Net pay
* CHF 50
Marginal tax rate
6.0%
Average tax rate
108.0%
100.0%
Net pay
0.0%
Total tax
Total tax
Net pay
The Taxberg
CHF 50
Net pay
CHF 8.42
Tax the employer pays
CHF 0
Tax you pay
Total tax paid
CHF 8.42
Did you know your employer also pays tax on your salary? It costs the employer CHF 8.42 to pay you CHF 50. In other words, every time you spend CHF 10 of your hard-earned money, CHF 1.68 goes to the government.
Real tax rate
14.4%
So, with you and the employer both paying tax, what used to be a 0% tax rate now rises to 14.4%, meaning your real tax rate is actually 14.4% higher than what it seemed at first.
Summary
If you make CHF 50 a year living in the region of Luzern, Switzerland, you will be taxed 0. That means that your net pay will be CHF 50 per year, or CHF 4.17 per month. Your average tax rate is 108.0% and your marginal tax rate is 6.0%. This marginal tax rate means that your immediate additional income will be taxed at this rate. For instance, an increase of CHF 100 in your salary will be taxed CHF 6, hence, your net pay will only increase by CHF 94.
Bonus Example
A CHF 1'000 bonus will generate an extra CHF 940 of net incomes. A CHF 5'000 bonus will generate an extra CHF 4'700 of net incomes.
NOTE* Withholding is calculated based on the Luzern tables of Switzerland, income tax. For simplification purposes some variables (such as marital status and others) have been assumed. This document does not represent legal authority and shall be used for approximation purposes only.