If you have already read the article about the cantonal and communal income taxes in Geneva, then the calculation of the wealth tax will be a piece of cake.
Otherwise, I would advise you to go have a look at it before you start reading the next paragraphs.
If you want to file your tax return for the canton of Geneva, don’t forget that we can free you from this burden. 😉 In the meantime, on this page, I present you 4 steps to calculate your wealth taxes in Geneva.
Ready… steady… go!
From gross to net wealth
First of all, addition the financial value of your belongings. This is your gross wealth.
- Current account
- Financial stocks (stocks, bonds, shares)
- Private loans
- Fiscal value of your real estate properties
- investment fund shares
- Art and valuable objects
Are you done? To find out the net wealth and move on to the next stage, you now have to subtract all authorised deductions.
What are they?
- Debts : mortgage, unsecured debts and private debts.
- “The franchise” : each canton determines an amount which is not subject to taxation. In Geneva, it depends on your situation.
All good? Did you find your taxable wealth? Let’s move on to the calculation of the tax burden.
Cantonal and communal taxes (ICC) calculation based on wealth
The cantonal and communal tax is calculated according to what is called the base ICC. How to find the latter?
- Take your taxable wealth and find out in which bracket it falls, based on the two lists below.
If you wish you can find them here.
- Determine the tax corresponding to the previous bracket (and addition the amounts of both tables)
- Apply the rate of the current bracket to the difference between the maximal number of the previous bracket and your taxable income. Do this on both tables.
Table 1: basic tax on wealth
Table 2: additional tax on wealth
Let’s use an example to clarify all this. You will see, in reality, appearances are deceptive and what follows is actually simple, as long as we take it step by step.
Calculation of the first table: basic tax on wealth
My cousin Chloé, single and without any children, who lives in Bardonnex and works in Carouge, has net assets of exactly 200,000 CHF.
To calculate her ICC on wealth, she has to subtract the 82,040 CHF free of tax.
She gets an amount of 117,960 CHF.
Her wealth is in the second bracket, from 113,327 CHF to 226,650 CHF.
As seen in the article on the income ICC, the first stage of the calculation of the base tax is the identification of the amount of the cumulated tax of the previous bracket. In the present case: 198.30 CHF.
To this amount, we have to apply the rate of the current bracket to the difference between the taxable income and the maximal number of the previous bracket.
In other words…or numbers: 117,960 – 113,326 = 4,634 CHF. The rate to be applied is 2.25 per thousand (and not percent).
4,634 x 0.00225 = 10.43 CHF.
By additioning both amounts, we get 198.30 + 10.43 = 208.73 CHF.
Chloé’s base wealth ICC is therefore 208.73 CHF.
Calculation of the second table: additional tax on wealth
Before we move on, since we are already in the middle of tables, let’s take this opportunity to evaluate the additional tax.
The steps are the same as those for the base ICC.
The cumulated tax of the previous bracket is 0. Which saves us a few blue banknotes and a few gray cells.
We still have to apply the rate of the current bracket to the difference between the maximal amount of the previous bracket and that of the taxable income, that is 4,634 CHF.
4,634 x 0.0001125 = 0.52 CHF.
Chloé’s addition wealth tax is thus of 52 cents.
All this brain-bending for such a small amount!
Calculation of the cantonal tax
The cantonal and communal taxes are calculated according to the base ICC, that is, in Chloé’s case, 208.73 CHF.
We do not take into account the additional tax.
To this base ICC, we have to add…
- The cantonal additional cents to the rate of 47.5 % for Geneva.
- The additional cents of home assistance to the rate of 1% for Geneva.
208.73 x 0.475 = 99.15 CHF.
208.73 x 0.01 = 2.09 CHF.
Chloé’s cantonal tax is therefore of 99.15 + 2.09 = 101.24 CHF.
Don’t give up, we are almost done!
Communal tax calculation
As I explained in the article “How to calculate cantonal and communal taxes in Geneva?” the communal tax is divided into two parts.
The first of which goes to the commune in which you live, the other part goes to the commune where you work.
How to determine these parts? The commune of residence benefits from a “preferential share”. The rate of the commune of residence is applicable in priority. The rest goes to the commune in which you work.
Let me remind you that Chloé lives in Bardonnex and works in Carouge.
The preferential share of Bardonnex is of 75% and the commune applies a 43% taxation rate.
Which gives us…
208.73 x 0.75 = 156.55 CHF
156.55 x 0.43 = 67.32 CHF.
67.32 CHF, is the amount the commune of Bardonnex will receive from Chloé’s assets.
We still have to determine the amount that goes to the commune of Carouge.
And since Bardonnex has a preferential part of the 75%, there logically is 25% left for Carouge, which, applies a 40% taxation rate.
We thus have 208.73 x 0.25 = 52.18 CHF
52.18 x 0.4 = 20.87 CHF.
20.87 CHF, is the amount the commune of Carouge will receive from Chloé’s assets.
In total, Chloé’s communal tax on wealth is 67.32 + 20.87 = 88.19 CHF !
All that remains is to put these amounts together
If you want to know the total amount of your cantonal and communal taxes on your assets, do like Chloé and add up all the numbers you found.
To remind you, we calculated…
- A base ICC of 208.73 CHF
- An additional tax of 00.52 CHF
- A cantonal tax of 101.24 CHF
- A communal tax of 88.19 CHF
The amount of the ICC on wealth is thus of 398.68 CHF.
And at the federal level? Good news, unlike the income tax, there is no federal tax on wealth.
This was Noé, the FBK Conseils mascot, who spends its life making yours better.
Do you have any questions? Do you want us to fill in your tax form for you? Please get in touch with me via the chatbox at the bottom of the page.
Take it easy and ask for my help.