Taxes and Cost of Living
In Switzerland, taxes are generally low, but are different in each canton. The taxation system operates in a similar way in all cantons.
Income tax
The "Einkommenssteuer" (Income tax) is imposed on the basis of the taxable income, comprising the sum of all revenues, minus various deductions (costs, general allowances, social allowances). All residents of Basel and all businesses are liable to taxation. In Basel-Stadt, income tax is imposed at annual intervals. The tax return is sent out to all taxpayers after the end of the tax year (tax period). Members of the Protestant, the Roman Catholic and the Old Catholic denominations as well as members of the Jewish community pay an additional church tax on their income, which is calculated as a percentage of the cantonal tax.
Wealth tax
In addition to income tax, the canton also imposes a "Vermögenssteuer"(wealth tax). This is based on the taxable assets of the taxpayer, comprising the value of all assets, taking various deductions (liabilities, allowances) into account.
Direct federal tax
Along with the cantonal (and municipal) taxes, natural persons domiciled in the canton are also subject to direct federal tax. It is declared and assessed along with the cantonal tax.
Links:
Steuerverwaltung (Tax administration)
Steuerrechner (Tax calculator)
Cost of living
Switzerland is generally considered to be an expensive country. Wages are also relatively high, however, and the tax burden is lower than in many other European countries.
