How to calculate the communal and cantonal tax (ICC) with the family quotient?

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Before we start digging into this calculation, note that we can now perform your tax return in the canton of Vaud, Geneva, and Valais!

Now let’s start digging!

If you know how to determine your taxable income, then let’s have a look at the family quotient for the calculation of cantonal and communal taxes in the canton of Vaud.

« My what now ? »

Your family quotient.

And if you are wondering whether this term refers to an IQ test your whole family will have to take… No, that’s not it. 

As you probably know, tax returns are done per household. Therefore, each household gets a family quotient. 

  • Single, divorced, widow(er), or taxed separately: your family quotient is of 1
  • married couple without children or registered partnership without children: your family quotient is of 1.8 
  • Single-parent household: your family quotient is of 1.3

Then, add 0.5 points for each dependent child.

Example…

You are a young married couple without children, your family quotient is of 1.8. 

You are a young married couple with one child, your family quotient is of 2.3. Two children? Your family quotient is of 2.8.

You are a young non-married couple with one child, your family quotient is of 1.5. Two children? Your family quotient is of 2. 

You are a single mother with a dependent child, your family quotient is of 1.8. Two dependant children? Your family quotient is of 2.3.

What does this mean in concrete terms?

Your household has a taxable income of 100,000 CHF with a 2.3 quotient.

You divide 100,000 by 2.3 and you get the relevant income for the calculation of the final taxation rate of 43,478 CHF.

The people in charge of determining your taxes will look for the rates corresponding to 43,478 CHF (in the table below) and then apply it to your total income of 100,000 CHF. In this case, for an income of CHF 43,400 (as taxes are specified by bracket of hundreds of income) the corresponding rate is 6.615%, applied to 100,000 CHF, this gives us a base tax of 6,615 CHF.

You are single, without any children (quotient 1) and your taxable income is 100,000 CHF? in this case, your final taxable income remain unchanged: 100,000 CHF.

However, if your household is fiscally considered as a privileged household, you will not be able to increase your family quotient for each child. 

 But they will allow you to deduct a fixed amount while keeping your previous family quotient. 

So, now, you know your taxable income and your family quotient which gives you your final taxable income per household. 

Great news: the heavy lifting is done!

Second to last stage: take this last amount and apply it to the scale used in your canton. 

What is the applicable scale in the canton of Vaud and how does it function?

What is a scale?

Put simply, it is the bracket in which your final taxable income falls.

Up until here, we have seen that this amount corresponds to your gross income, minus your tax contributions (net income), minus tax deductions applicable in your canton (taxable income).

Before looking at the table to see which tax is associated with our taxable income, we divide it by the family quotient as seen above.

Let’s take two examples:

Example 1: single person, without children and with a taxable income of 50’200 CHF, then we divide by 1, which gives again 50’200 CHF… obviously… After calculating discussions, you determined, for instance, that the taxable amount is 50’200 CHF.

Example 2: Married couple with one child, and a taxable income of 115,500 CHF, then we divide by 2.3, which gives 50,217 CHF (this way, we keep the same rate of the 50,200 CHF bracket, but not the same tax amount!)

At this stage, you have to refer to the table listing the various taxable brackets. 

Each canton has its own table.

In the canton of Vaud, this is what it looks like… 

tax scale for revenu ICC determination

For our example 1: with the taxable income of 50,200 CHF, you can see that the base tax is 3,483 CHF.

In example 2: with a taxable income of CHF 50,200, we will take the corresponding rate, i.e. 6.938%, and apply it to our household taxable income of CHF 115,500. This gives us a basic tax of : 115’500 * 0.06938 = 8’013 CHF.

Keep those base taxes in mind and move on to the next step in order to finally precisely calculate the final tax at the communal and cantonal level.

Feeling lazy? Check out our fiscal calculator!

How to apply taxation rates of the canton of Vaud and my commune ?

Phew! We are reaching the final stage.

Basically, we will simply take the basic tax determined above according to our situation, and multiply it by the cantonal rate, then in a second step by the communal rate. The addition of the two results will give us our total ICC tax.

The tax rate in the canton of Vaud was fixed at 155% for 2021 and 2022.

Which means that:

  • In example 1: I owe 3,483 CHF * 155% = 5,433.48 CHF in taxes to the canton of Vaud.
  • In example 2: We owe 8’013 CHF * 155% = 12’420.15 CHF to the canton of Vaud.

The tax rate of communes in the canton of Vaud vary from one commune to the other. 

In Lausanne, it is 78.5%.

Which means:

  • In example 1: I owe 3,483 CHF * 78.5% = 2,734.15 CHF in taxes to my commune. In total, I therefore owe 8,167.63 CHF in taxes to which I still have to add the federal tax.
  • In example 2: We owe 8’013 CHF * 78.5% = 6’290.20 CHF in taxes to the commune. Which makes a total of 18’710.35 CHF in ICC taxes. 

Here is how we calculate, from A to Z, the annual tax at the cantonal and communal level, with the family quotient.

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