The marginal tax rate as an important parameter for tax issues

The marginal tax rate answers the question of how an additional amount to the previous taxable income would be taxed. Due to progression, the marginal tax rate is always higher than the average rate at which the entire income is taxed. If, for example, the marginal tax rate is 20 per cent, CHF 200 of CHF 1’000 additional income must be taxed.

The question of the marginal tax rate arises when paying into pillar 3a, indirect amortisation or other tax measures.