Canton and municipality of Zurich · Offices, school and social services
Cantonal and municipal taxes
Topic
In Switzerland, the Confederation, the canton and the municipality levy taxes. The most important taxes for the canton and the municipality are income tax and wealth tax. You pay income tax on your wages and other income. You pay wealth tax on savings and property, for example a house.
In the canton of Zurich it is calculated like this: the municipality charges a percentage of the cantonal tax. This percentage is called the tax rate (Steuerfuss). It is different in each municipality. That is why you pay less tax in some municipalities than in others. But some taxes are collected only by the Confederation. These include withholding tax on interest, tobacco tax, alcohol tax and customs duties. So they are not part of the cantonal and municipal taxes.
Memory aid: Canton and municipality tax what you earn and what you own.
Key terms
- Einkommenssteuer
- Income tax: tax on wages and other income.
- Vermögenssteuer
- Wealth tax: tax on assets, for example savings or a house.
- Steuerfuss
- Tax rate: the percentage each municipality uses to calculate its tax; it differs from municipality to municipality.
Exam questions on this topic
- Which of these is one of the most important cantonal and municipal taxes?Correct answer: A, Wealth tax
- Which of these is one of the most important cantonal and municipal taxes?Correct answer: D, Income tax