Net salary in Switzerland

Tax system in Switzerland

Switzerland has a unique three-tier tax system: federal, cantonal, and municipal. Tax rates vary substantially between cantons, making location choice a significant financial decision. Geneva, one of the most popular cantons for expatriates, has higher cantonal rates than Zug or Schwyz but offers a cosmopolitan environment and proximity to international organizations. Social contributions include AHV/AVS (old-age and survivors insurance), ALV/AC (unemployment), BVG/LPP (occupational pension), and UVG/LAA (accident insurance). The mandatory health insurance (LAMal) is paid separately and is not deducted from salary.