Marginal tax rate
The marginal tax rate equals the highest tax rate a tax payer will pay on her/his taxable income.
Switzerland having a progressive tax system, it is important to know your marginal tax rate in order to precisely estimate what impact an increase/decrease of your taxable income will have on your finances.
Exemple :
A person with a 35% marginal tax rate seing his/her taxable income increase by CHF 10k by becoming a homeowner, will need to pay an extra CHF 3’500.- in taxes.
If the taxable income of that same person was to decrease by the same amount by becoming a homeowner, he/she will save CHF 3’500.- in taxes.
When assessing your project, we will estimate your marginal tax rate, and ensure that we put in place the most efficient strategy.
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