Understanding income tax in the canton of Geneva

Calculating one’s taxes according to gross income is like peeling onions layer by layer. At the end, there is not much left and we shed a few tears along the way. 

The advantage is that the surprise effect is avoided since the bill arrives at the begining of the year. Of course, even though the amount will remain unchanged, we can relieve you of the chore of doing your tax return in Geneva by doing it for you. But if you are interested in the calculation, then here is the procedure.

As you probably know, there are two levels of income tax in Switzerland and, by extension, in the canton of Geneva: the cantonal and communal income (ICC) and the direct federal taxation (IFD) It also exist a tax at cantonal and communal level only on wealth. 

For the sake of clarity, I divided the calculation into two parts. On this page, I will only show you how to determine the cantonal and communal income taxes (ICC). 

Before you start, bear in mind that taxation in Switzerland is a grey area for most. Euphemism. The problem occurs when we try to understand everything at once. The best strategy however is to take it step by step.

Let’s go. 

From gross to net salary 

The gross salary represents the amount negociated with your employer or yourself if you are an entrepreneur or self-employed.

Net salary is what appears on your bank account at the end of the month. The difference between the two is made of deductions related to social insurances (except for people taxed at source who, in addition to social security deductions, have income tax deducted from their salary)..

That being said, the net salary is not the taxable income yet. 

From net salary to taxable income

To go from net income to taxable income, there is only one step: subtracting the authorised deductions. And to do that, you need to separate everything into two categories.

Why do these two categories exist? Because authorised deductions are not always the same between cantonal and federal deductions. Sometimes they are, somethimes not. In addition, the scales differ.

What is authorised at the communal level is also authorised at the cantonal level, this is why they are grouped. But this is not necessarily the case at federal level. The amount of authorised deductions can also vary. 

Here is a non-exhaustive list of generally accepted deductions:

• Pillar 3A and B 30)
• LPP repurchases (19)
• Childcare costs 
• Medical costs 
• Health insurance 
• Transportation
• Meals 
• Etc. 

Here is an example of 2023 deductions for a relatively simple situation.

And if you would like more information on Geneva’s deductions, check out our dedicated article: The 10 authorized deductions in Geneva.

Calculate the base cantonal and communal taxes in Geneva

Now that we’ve converted your gross income into taxable income for CCI and DFI purposes, you’ve taken an important first step. The second part of the process can now begin, but be warned: it will require patience and rigour. To do this, we will first determine a basic tax, then carry out a few calculations specific to the canton of Geneva before arriving at the final tax amount.

Step 1: Calculating basic tax

It all starts with a scale that is updated every year by the canton of Geneva and that works for both the commune and the canton.

And if you ever feel lost (because I’m anticipating), don’t worry. We’ll go through all these calculations again with a concrete example and figures to guide you step by step.

Part 1: Take the amount of your taxable income and find out in which bracket it falls.

Part 2: Determine the tax corresponding to the previous bracket

Part 3: Apply the rate of the curent bracket to the difference between the maximal number of the previous bracket and your taxable income. 

At this point, I feel like crying out loud, but it would not be very professional of me. Instead, I will use an example to illustrate the next steps. Presented this way, they are hard to grasp. But with an example, it will all become clearer. 

My cousin Chloé, who lives in Bardonnex and works in Carouge, has a taxable income of CHF 50,000. In other words, after her employer has deducted AVS, LPP, unemployment, etc., and after Chloé has claimed all her deductions: transport, meals, 3rd pillar, etc., she still has cantonal and federal income of CHF 50,000 to pay tax on.

First thing to do: look at this table (valid in 2025 for your 2024 tax return).

Chloé’s scale is highlighted in bold: CHF 47,869 – CHF 76,811.

The amount to keep in mind is the total tax of the previous bracket (43’417 – 47’868): 3’486.60CHF.

Be careful, this is not (yet) the base ICC. This is just the first step.

To calculate it, remember the taxable income. It is 50,000 CHF for Chloé. The difference between 47’869  CHF, the maximal number of the previous bracket, and the taxable income is 50,000 – 47’869 = 2’131 CHF.

This new amount is taxable at the rate of the current bracket, that is 15%. And 15% of 2’131 CHF, gives us 319.65 CHF.

2’131 x 0.15 = 319.65 CHF

All that remains is to add these two amounts together to find the basic ICC tax.

3’486.60 + 319.65 = 3’806.25 CHF.

Phew! The base ICC therefore is of 3’806.25 CHF.

Now, you can suspect that if it is called “base” tax, this means we still have a way to go before calculating your final taxes.  

Step 2: How to calculate cantonal taxes in Geneva? 

It may seem strange or complicated to you, but believe me, you haven’t seen anything yet. Let’s start with this basic tax and go step by step.

1. 12% reduction on the base tax 

The canton of Geneva kindly takes 12% off the base ICC. 

Let’s take Chloé’s example. 

12% of his basic CHF 3,806.25 x 12% is CHF 456.75.

Keep this in mind for the final calculation.

2. Adding additional cantonal cents 

Additional cantonal cents are expressed in percentages and refer to the amount the canton wants to withhold on your base tax. In Geneva, it is 47.5%. In other words, everyone in Geneva must pay 47.5% of their base tax to the canton. 

Be careful: the calculation is done based on the base ICC (and not the base ICC minus the 12%). 

3’806.25 x 0,475 = 1’807.97 CHF.

3. Subtraction of the 12% on the additional cantonal cents 

This time, the canton takes 12% off the amount we just calculated. 

1’807.97 x 0,12 = 216.96 CHF.

4. Adding the additional home assistance cents

What is this home assistance? 

It is not clearly defined. What we know for sure is that it does exist and that it has to be paid.

The assistance represents 1% of the base ICC. 

3’806.25 x 0,01 = 38.06 CHF.

5. All we have left to do is addition these amounts

In short, you have a base ICC. Cholé’s is 3’806.25 CHF.

Two additional amounts that the cantons call “cents”. Chloé’s are 1’807.97 + 38.06 CHF.

And two amounts to subtract. Chloé’s are 456.75 CHF and 216.96 CHF.

In our example, the final cantonal tax is 4’978.58 CHF.

To find out your final cantonal and communal taxes (ICC), you still have to add the communal tax. Hold on tight, we are almost done! 

How to calculate the communal tax in Geneva? 

The communal tax, just like the cantonal one, is calculated on according to your base ICC. .

Part of your base tax goes to your commune of residence and the other part goes to the commune you work in. 

The commune of residence had priority. It enjoys what is called a preferential part. This part is fixed. The remaining part will go to the other commune. 

The list of rates is available on the canton of Geneva’s website (link valid until 2023).

Chloé lives in Bardonnex, in this commune, the preferential part is 76%. The remaining 24% will be paid to the commune of Carouge, where she works (in this case, it is indeed a matter of chance if the sum of the preferred shares of the two communes is equal to 100%). 

To calculate the tax, you first have to determine the 76% of the base ICC. 

3’806.25 x 0,76 = 2’892.75 CHF.

You can see the tax rate in Bardonnex is 43%. Bardonnex’s share of the basic tax is multiplied by its municipal rate, i.e. :

2’892.75 x 0,43 = 1’243.88 CHF.

Chloé has to pay 1’243.88 CHF to her commune of residence.

To find out her total communal tax, she still has to add the tax she will have to pay to the commune where she works, Carouge. 

The 24% of the base ICC is 913.5 CHF. The taxation rate in Carouge is 40%. And 40% of  913.5 is 365.40 CHF.

Chloé’s communal tax therefore is 1’243.88 + 365.40  = 1’609.28 CHF.

The final ICC calculation 

We have seen that the base ICC is not the final tax but rather a basis on which to calculate the two first levels of taxation. 

To determine the amount of your communal and cantonal taxes, you just have to add both amounts you just calculated. 

For Chloé, it is 4’978.58 +1’609.28 = 6’587.86 CHF!

Chloé is single, maybe you are not. In which case, you are probably wondering whether the calculation is the same for a married couple or a registered partnership. 

Everything we have seen throughout this article, which almost resembles a math class, remains true, with one exception. 

The ICC for a married couple or a registered partnership

When you are single, the starting point of your calculation is your income. The taxable income, base ICC… stem from this.  

When you are married or in a registered partnership, the income of both partners is additioned and divided by two.  

The starting point of your calculation is therefore no longer the amount of your additional incomes but the household’s cumulated income, then divided by two. 

For example, if Zoé, my wife, and myself make 100,000 CHF net amongst ourselves, then the calculation will be based on a 50,000 CHF net income for each one of us. 

Also, the authorised deductions slightly differ. They are more advantageous for married couples and registered partnerships although this is not always enough to make the marriage attractive for tax purposes.

And the federal tax?

To find out the total amount of your annual income taxes, you still have to add the direct federal taxation (IFD).  

If you still have a bit of energy left, you should have a look at the article dedicated to the IFD calculation (direct federal taxation). 

And the wealth tax?

Finally, to find out the total amount of your annual taxes, you have to take the tax on wealth into account. 

It is easier to calculate and I will tell you everything you need to know about how to do it in the next article, dedicated to the wealth tax in the canton of Geneva. 

And then… it is the light at the end of the tunnel! By additioning the ICC, the IFD and the wealth tax, you will find the total amount of your taxes. 

If you read the whole thing, I take my hat off to you. 

The calculation of taxes is a mathematical marathon. My brain is sore. I am going to relax for a bit.  

Do you have any questions? We are at your service, feel free to contact us.

How can FBKConseils help you with income tax in the canton of Geneva?

At FBKConseils, we specialise in personal taxation, whether you live in Valais, Vaud or Geneva. We can answer all your questions and, better still, help you with all your tax-related matters.

Assistance with your tax return in the canton of Geneva

Nothing could be more classic: we offer all our customers full assistance with their annual tax return.

Tax return training

For some time now, we have been offering training sessions to help you declare your income and wealth more effectively. These courses help those who wish to do so to become more independent in the years to come and to better understand the taxation process.

Checking your tax decision

Every year, FBKConseils is surprised by some of our clients’ tax decisions. The tax authorities can sometimes make significant changes to what was originally planned, and like everyone else, they can also make mistakes. That’s why verifying your tax decision is almost as crucial as ensuring that your tax return is completed impeccably.

Tax simulations

We recommend that all taxpayers faced with major life changes – moving house, marriage, birth of a child, salary increase or reduction – anticipate the tax impact of these events as far as possible. At FBKConseils, we can carry out all these simulations and, if possible, suggest ways of optimising your situation.