What is withholding tax, and how is it calculated?

What is withholding tax, and how much is the withholding tax deduction?

Withholding tax is a tax that is not paid by the taxpayer directly, but rather by the employer. The amount owed is deducted before payment and remitted to the government.

Withholding tax applies to foreign employees who are residents of or staying in Switzerland, as well as to all employees who are not residents of or staying in Switzerland (including Swiss citizens).

Withholding tax is calculated differently depending on the canton, marital status, religious affiliation, and number of children. Each employee is assigned a withholding tax rate code for this purpose.

The withholding tax rate code is determined by the tax rate, the number of children, and religious affiliation.

Pay Grade Categories

A – Rate for single individuals

B – Tax bracket for married, single-income households

C – Tax Bracket for Married Couples with Two Incomes

D – Rate for Part-Time Work

Number of children

A maximum of 9 can be included; the number of children is taken into account only if child allowances are also paid through payroll+.

Church Tax

Y – With church tax

N – No church tax

Example: A0Y Single person without children who pays church tax

Comparis Withholding Tax Calculator:

https://www.comparis.ch/neu-in-der-schweiz/finanzen/quellensteuer

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