Income tax calculation using the example of St. Gallen
As an example, we will calculate the tax in the canton of St. Gallen. The tax rate of the canton of St. Gallen is as follows:
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The simple tax on income is:
For taxable income above 250,000, the simple tax for the entire income is 8.5 percent.
The cantonal tax rate (2018) is 115, while the municipal tax rate averages 144.
If a person has a taxable income of 20,000 francs, what is the amount of tax payable?
On the first 11,000 francs, no tax is payable (11,000 x 0). For the next 4000 francs, an amount of 160 francs (4 percent of 4000; 4000 x 0.04) is due. On the last 5000 francs, simple tax of 300 francs is due (6 percent of 5000; 5000 x 0.06). The total simple tax amounts to 460 francs
This amount must now be multiplied by the tax rate (Steuerfuss). The actual tax to be paid is therefore 529 francs in the canton (460 x 1.15) plus 662.40 francs in the municipality (460 x 1.44). Therefore, an income tax of 1191.40 francs is due on the cantonal and municipal level.