The largest industrial canton in Switzerland is Aargau with the cantonal capital Aarau. All residents of the canton who are at least 18 years old are requested once a year by the cantonal tax administration to submit a tax return. The canton of Aargau had a population of 704,243 at the end of July 2022. It is divided into eleven districts and 212 municipalities. The tax rate in the canton of Aargau is slightly above the average of all Swiss cantons. Depending on the municipality, different deadlines apply to the submission of the tax return in the canton of Aargau.
Tax rate in the canton of Aargau
The canton of Aargau is one of the Swiss cantons with an above-average tax rate.
The average for the Swiss cantons is 33.6 percent. In the canton of Aargau, the tax rate is 34.5 percent.
Residents of the canton are taxed not only at the cantonal level, but also by the federal government and the municipality. Residents who belong to the church pay additional church tax. The municipalities must set the municipal tax rates themselves and report them to the cantonal tax administration.
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Wealth and inheritance tax
In addition to income tax, residents of the Canton of Aargau pay wealth tax. The wealth tax is not calculated in percent but in per thousand and refers to the total wealth.
In the canton of Aargau, inheritance or gift tax is levied on inheritances or gifts. This tax does not apply to descendants, parents, married couples or registered partners if the accrual of assets occurred during the marriage or partnership.
Address and contact of the Tax Administration of the Canton of Aargau
The Cantonal Tax Administration of the Canton of Aargau requests residents who are at least 18 years old to submit their tax return each year. The tax return can also be submitted in digital form. This is the web address of the Cantonal Tax Administration: https://www.ag.ch/de/verwaltung/dfr/steuern
The postal address of the Aargau Cantonal Tax Administration is:
Department of Finance and Resources
Cantonal tax office
Tellistrasse 67
5001 Aarau
Contacting the Cantonal Tax Administration is also possible by phone, fax or via a contact form. Telephone number, fax number and e-mail address are available on the website of the Cantonal Tax Administration.
For questions about taxes and deadlines, taxpayers can also contact the relevant municipal office.
Tax software accepted in the canton of Aargau
As in all Swiss cantons, the tax return can also be submitted in digital form in the canton of Aargau. The submission is facilitated with tax software. Different tax software is accepted in different cantons. The canton of Aargau accepts the EasyTax tax software, which is available for Windows, Mac OS and Linux free of charge for download on the website of the cantonal tax administration. Extensive information on the use of the tax software is available on the website of the cantonal tax administration.
Those who consult a tax advisor can make their tax return easier and save time. Tax return mistakes are avoided with a tax accountant and you can have your tax return completed.
Deadlines for filing the tax return in Aargau
Different deadlines apply in the individual Swiss cantons for the submission of the tax return. With the request to submit the tax return, the taxpayer is given a proper deadline for submission. Unlike in other Swiss cantons, different deadlines apply in the canton of Aargau, depending on the municipality. For the most part, March 31 is considered the ordinary deadline. The tax return is always filed in the current year for the previous year. Thus, it must be submitted for 2022 by March 31, 2022.
Those who cannot meet the ordinary deadline have the option of submitting an online request for an extension of the deadline. An extension of time may be requested without charge until June 30 of the current year.
Consequences of failure to comply with the deadline and failure to file the tax return
Anyone who does not submit their tax return in the canton of Aargau within the regular deadline will receive a reminder for which a fee of CHF 35 will be charged. A new deadline is set with the reminder. If the taxpayer does not respond to the reminder, he/she will receive a second reminder, for which a fee is also due. If the taxpayer also ignores the second reminder, he/she will be fined, depending on income, up to CHF 1,000. In serious cases, a fine of CHF 10,000 may also be levied. Repeated failure to file a tax return is a serious case.
Possibilities of payment relief in the canton of Aargau
Taxpayers in the canton of Aargau who are experiencing payment difficulties may submit a request for payment relief to the cantonal tax administration before the payment deadline expires. Payment relief may be granted in the form of deferral or installment payments. Proof of financial hardship may be required.
What is tax-free in the canton of Aargau?
In the canton of Aargau, some income is tax-exempt. The pay of militia firefighters is tax-exempt up to CHF 10,000 annually if it is paid in connection with the performance of the fire department’s core duties. Winnings from legally permitted cash games are tax-free up to CHF 1 million per game for large games. No taxes are levied on winnings from lottery and skill games up to CHF 1,000 per game.
What is tax deductible in the canton of Aargau?
Various expenses are tax deductible in the canton of Aargau:
- Expenses related to Covid 19 measures for home office as professional expenses
- Costs for travel between home and place of work
- Expenses of additional income with 20 percent of the income, minimum 2,400 and maximum 3,600 CHF
- Professional expenses at 3 percent of net salary, annual minimum CHF 2,000 and maximum CHF 4,000
- Maintenance costs for private real estate
- Contributions to health, life and accident insurances
- Second-earner deduction with CHF 600 if both spouses are gainfully employed
- Sickness and accident costs
- Donations and membership fees to political parties up to CHF 10,000 per year
- Costs for third-party care of children up to the age of 14 with CHF 10,000 per child and year
- Costs for education and training annually up to CHF 12,000
- Grants to non-profit organizations
- Stake costs for winnings from cash games up to CHF 5,000 per game and up to CHF 25,000 annually
Cantonal peculiarities – reduction of net income
In the canton of Aargau, there are cantonal peculiarities regarding the reduction of net income. Net income is reduced by various deductions, which means less tax. This concerns
- Child deductions of CHF 7,100 per child up to age 14 and CHF 9,100 per child up to age 18
- Child deduction for children in education at CHF 11,100 per child
- Support deduction for persons incapable of gainful employment or persons with limited earning capacity at CHF 2,400 per person
- Disability deduction maximum CHF 3,000 per year
- Care deduction for persons in need of care in the taxpayer’s home at CHF 3,000 per person
- Social deductions for low-income individuals.