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Tax at source in Thurgau: when the household pays too little

The only canton with the sign reversed

In six of the seven cantons in our series the household pays too much because of the wrong tariff codes. In Thurgau it is the other way round — around CHF 126 a year too little is withheld.

That sounds like the pleasanter variant. It is not, and the reason is simple: whatever is underpaid during the year is missing later, when the final tax is calculated.

The use case

A married couple, both working, three shared children they can claim, salaries of CHF 174'000 and CHF 157'000. The husband's payslip shows B2 — married single earner with two children. The wife's shows C0: right letter, but no children. Both should have been C3.

Calculated with the official Thurgau 2026 tariffs without church tax, assuming twelve equal monthly salaries with no 13th salary and no bonus:

  • Husband: 9.73 % instead of 12.41 % — around CHF 4'663 too little a year
  • Wife: 14.26 % instead of 11.37 % — around CHF 4'537 too much a year
  • Together: around CHF 126 too little

Why these CHF 126 say nothing about Thurgau

The net figure is so small that it flips as soon as you move the salaries. Shift both down by CHF 10'000 and CHF 270 too little appears; shift them up and it becomes more than CHF 800. With a different number of children the picture changes entirely.

No statement about the canton can be derived from this figure. It describes a single salary combination, not a property of the Thurgau tariff.

What is meaningful are the two individual amounts: CHF 4'663 too little on one salary, CHF 4'537 too much on the other. More than CHF 9'000 runs wrong — and the household notices nothing.

Underpaying is not a gift

Because one spouse in this use case already earns more than CHF 120'000, the couple is assessed under the ordinary rules. The tax at source actually paid is credited against the final tax. If too little was prepaid, a balance falls due — at a moment you do not choose.

How the Thurgau tariff is built

Thurgau taxes from the first franc. There is no tax-free zone at the bottom of the tariff, unlike Geneva, Zug, Schwyz or Aargau, and no minimum franc amount either — the percentage stands on its own.

Upwards the scale runs in CHF 50 steps to CHF 25'001 a month and more coarsely above, until it reaches its ceiling of 27.20 % at CHF 150'001. That is a good deal further than Aargau, which flattens at CHF 95'001, and further than Zurich at CHF 100'001.

For this household the practical consequence is simple: both salaries sit in the rising part of the scale, so both the tariff letter and the number of children still change the rate. A wrong code here is never neutralised by a flat ceiling.

What these figures are — and what they are not

They concern the running tax-at-source deduction, not the final tax. Because one spouse in this use case already earns more than CHF 120'000, the couple is assessed under the ordinary rules anyway — and the tax at source actually paid is credited there. The wrong code affects the household's liquidity first.

How to check your payslip

The tariff code has three parts: tariff letter, number of children you can claim, church tax marker. Check all three against your actual situation — and on both payslips, not just the conspicuous one.

A correct code is a good first check but not a complete one: with several employments the rate-determining income can be wrong too. In Thurgau a wrong code can mean too little is being deducted, which feels like nothing at all until the assessment arrives. If you find something, report it to HR. For years already closed, a tax-at-source correction should generally be requested by 31 March of the following year. And what you will actually owe in the end only shows once both salaries are calculated together — see our tax advisory for Thurgau.

The series: the same error in other cantons

Frequently Asked Questions

Is it better if too little is deducted?

No. Whatever is underpaid during the year is missing later, when the final tax is calculated. A deduction that is too low only shifts the burden backwards — and then arrives as a balance to pay, usually when you are not expecting it.

Why does the sign flip so easily?

Because two opposing errors meet, and in Thurgau they are almost equal at these salaries. As soon as one salary shifts, the balance shifts too. The net figure is therefore not a reliable indicator — the two individual deviations are.

What is the more reliable view?

The individual payslip. In the example the husband has around CHF 4'663 too little deducted and the wife around CHF 4'537 too much. Those two figures are meaningful; their sum barely is.

FIN Disclaimer:

The content on this blog is provided for general informational purposes only. It does not constitute financial, investment, or tax advice and cannot replace individual advice from qualified professionals. While every effort has been made to ensure the accuracy, completeness, and timeliness of the information provided, we assume no liability for any errors or omissions. Articles may reflect personal opinions and assessments, which may change over time. External links lead to third-party content for which we assume no responsibility.

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