Canton Aargau applies progressive cantonal income tax rates which are combined with communal tax multipliers and federal income tax. This page explains how the income tax rates in Aargau work in practice, without going into every detailed tariff table. The focus is on understanding the system: how the cantonal tariff is structured, how communal multipliers are applied and how this interacts with the federal income tax.

Basic Structure of Income Tax in Aargau

For residents of Aargau, the total income tax burden consists of three components:

• Federal income tax (direct federal tax, same throughout Switzerland)
• Cantonal income tax (based on the Aargau tariff)
• Communal income tax (cantonal tax multiplied by the commune’s tax rate)

The federal tax uses its own nationwide tariff. Aargau then applies its own cantonal tariff to the same taxable income, and the resulting cantonal tax is multiplied by the relevant communal tax multiplier for the place of residence. The sum of these elements forms the total income tax.

Progressive Cantonal Tax Rates

Aargau’s cantonal income tax is progressive, which means that the marginal tax rate increases as taxable income rises. In simplified terms:

• Low taxable incomes are taxed at comparatively low rates.
• As income increases, the marginal tax rate rises step by step.
• From a certain income level onwards, the marginal rate stabilises close to the top rate.

The exact tariff is set out in Aargau’s tax law and implemented through detailed tables which distinguish between different taxpayer categories, in particular:

• Single taxpayers without children,
• Married couples and registered partners, and
• Taxpayers with dependent children or persons in need of support.

As a result, two taxpayers with the same gross income may face different tax burdens depending on their family situation.

Communal Tax Multipliers (Steuerfüsse)

In addition to the cantonal tariff, each commune in Aargau applies its own tax multiplier (Steuerfuss) to the cantonal tax. The process can be summarised as follows:

1. Determine taxable income under cantonal rules.
2. Apply the Aargau cantonal tariff to calculate the cantonal income tax.
3. Multiply the cantonal tax by the communal multiplier for the place of residence.

Communal multipliers differ from commune to commune. Some communes have relatively low multipliers and thus lower overall tax burdens, while others have higher multipliers. This is one of the reasons why effective tax burdens can vary even within the same canton.

Interaction with Federal Income Tax

The direct federal income tax is assessed independently of the cantonal and communal taxes, based on the federal tariff. From the taxpayer’s perspective, however, the combined effect is what matters:

• The federal tariff applies to taxable income after federal deductions.
• The Aargau cantonal tariff applies to taxable income after cantonal deductions.
• Communal tax is calculated as a multiplier on the cantonal tax.

While the federal tariff is the same across Switzerland, the cantonal and communal elements can cause significant differences in the overall tax burden between cantons and even between communes.

Different Tariffs for Different Taxpayer Categories

Aargau distinguishes between different taxpayer categories in its tariff structure. Typically, this includes separate scales for:

• Single taxpayers,
• Married couples and registered partnerships (often jointly taxed),
• Taxpayers entitled to family-related allowances (children, dependants).

This differentiation reflects the principle that households with dependants should not face the same tax burden as single taxpayers at the same income level. The exact progression and breakpoints are set out in the official Aargau tariff tables, which are updated periodically.

Withholding Tax (Quellensteuer) and Rates

Foreign nationals without a permanent residence permit may be subject to withholding tax on employment income. In such cases:

• Income tax is deducted directly from the salary by the employer.
• The withholding tax rates are designed to approximate the combined federal, cantonal and communal tax burden.
• In some situations, the taxpayer may request a subsequent ordinary assessment, which can lead to additional tax due or a refund.

The withholding tax tariffs for Aargau differ from the ordinary tariffs but are based on similar principles of progression and family situation.

Factors That Influence Your Effective Tax Rate in Aargau

Several factors influence the effective tax rate you pay on your income in Aargau, including:

• The level of your taxable income,
• Your marital status and whether you have children,
• The commune in which you are resident (due to the communal multiplier),
• Whether part of your income is subject to withholding tax,
• Available deductions and allowances (which reduce taxable income).

Because of these variables, the effective tax rate is usually best understood through specific examples, which are addressed in the dedicated Examples section of the Aargau income tax guide.

Practical Use

The purpose of this page is to explain the logic of Aargau’s income tax rates rather than to reproduce every tariff table. For planning purposes, taxpayers typically:

• Use official or third-party tax calculators to estimate their tax burden, and
• Consider both the cantonal tariff and the communal multiplier when evaluating the impact of living in Aargau.

For a full understanding of your situation, it is often helpful to combine the information on rates from this page with the pages on Deductions, Filing Requirements, Special Rules and Examples.