Getting married in Switzerland: Tax implications you should know
Marriage is not just an emotional decision—it comes with significant financial consequences. Suddenly, your pensions, everyday finances, and taxes are intertwined. In Switzerland, where the tax system can be complex, it’s crucial to understand the implications of getting married before taking the plunge.
Whether you’re considering tying the knot or are already married and curious about how this affects your tax burden, this guide is for you. Let’s dive into the changes that come with marriage and how you can benefit.
Table of Contents
- Tax Changes After Marriage
- Case Study: Joint vs. Individual Taxation
- Special Rules and Exceptions
- Tax Treatment of Childcare Costs
- Impact on Social Benefits and Insurance
- Tips to Optimize Your Tax Burden
- Conclusion
Tax Changes After Marriage
Why Does Your Tax Burden Change After Marriage?
Once married, the state no longer views you as two single individuals but as a couple. You’re now categorized as a “household unit,” sharing responsibility for each other financially. If one partner faces financial difficulties, the state assumes the other partner will step in to help—not just emotionally, but also financially.
From the moment you’re married, many social benefits are calculated based on your combined household income.
Two key concepts you need to understand (ideally even before you get married) are:
- Joint vs. Individual Taxation
- Spousal Splitting (“Ehegattensplitting”)
We’ll cover these in detail below.
Case Study: Joint vs. Individual Taxation
If you’re single, your tax declaration is handled individually. As a married couple, you’ll now be taxed jointly. What does this mean? You’ll submit one combined tax return, where both incomes are added together to determine your tax rate.
Progressive taxation means that as income rises, so does the tax rate.
For example:
If you (no kids, atheist) currently earn CHF 70'000.- annually in Zurich, your income tax for 2024 would be calculated as follows:
- Municipal Tax: CHF 3'105.-
- Cantonal Tax: CHF 2'557.-
- Federal Tax: CHF 663.-
- Church Tax: CHF 0.-
- Personal Tax: CHF 24.-
Total Tax: CHF 6'349.- (9.07% of total income).
Now, let’s say your partner also earns CHF 70'000.- annually. With joint taxation, your combined income of CHF 140'000.- would result in a higher tax rate. Assuming you have no kids and are both atheists in Zurich, this combined income would be taxed at 10.09% in 2024, leading to:
- Municipal Tax: CHF 6'656.-
- Cantonal Tax: CHF 5'481.-
- Federal Tax: CHF 1'943.-
- Church Tax: CHF 0.-
- Personal Tax: CHF 48.-
Total Tax: CHF 14'128.-
In comparison to the CHF 6'349.- you’d pay as two single individuals (2 x 6'349.- = 12'698.-), you now pay CHF 14'128.- as a married couple. This increase is often referred to as the “marriage penalty”.
Joint taxation is more advantageous when one partner earns significantly less than the other. However, for dual-income couples earning similar amounts, marriage can push you into a higher tax bracket.
Special Rules and Exceptions
Discussions about reforming the Swiss tax system are ongoing. A recent popular initiative advocates for “individual taxation regardless of marital status,” which could lower the tax burden for many couples. The Swiss Parliament has until early 2025 to decide on this proposal. Stay tuned!
For now, I recommend using the Swiss Federal Tax Calculator to run your numbers and understand your personal tax situation. The tool takes into account significant regional differences. You can access it here.
Tax Treatment of Childcare Costs
Since 2024, parents in Zurich can deduct up to CHF 25'000.- in external childcare costs—an increase from the previous CHF 10'000.- limit.
For unmarried couples, the parent paying for childcare can claim this deduction, while the other parent’s child support payments are considered taxable income.
Impact on Social Benefits and Insurance
Marriage also affects social benefits and insurance. For example:
- Pension Benefits: Married couples are entitled to 150% of the maximum pension, compared to 200% for two single individuals.
- Widow’s Pension: If your spouse passes away, you’ll receive a lifetime widow’s pension based on their social security contributions. However, if the husband dies first, the pension is only paid as long as there are dependent children under 18.
Tips to Optimize Your Tax Burden
If you’re feeling discouraged, don’t worry—marriage has its perks, even if they’re not always financial. Here are my tips:
- Discuss Finances Openly: Talk with your partner about your household income, expenses, and existing tax deductions.
- Plan Ahead: Calculate how your taxes will change after marriage. Use tools like the Swiss Tax Calculator to project your new financial reality.
- Consult a Professional: If you’re unsure how to approach tax planning, a financial advisor can help you strategize and take full advantage of all available deductions.
Conclusion on taxes for married couples
The Swiss tax system is rooted in traditional family structures, favoring households where one partner earns significantly more than the other. This can discourage dual-income households and hinder gender equality.
By understanding the tax implications of marriage in advance, you can make informed decisions and find the best approach for your situation.
Your Financial Expert
