RE: US-Americans balking — hard to say what everyone's tax situation is like. A few states lack income tax, but pay is accordingly lower on a nominal scale vis-a-vis other states, so perhaps 20 percent would seem high.

RE: federal tax — taxed on three levels federal, cantonal, and community. Each has its own scale. Too numerous to enumerate here.

RE: percentage and recipient state — Swiss is equitable. I pay that first. The U.S. fraction is a mess to calculate. I pay a differential of the two with some measure of tax credits and income exclusion, meaning hypothetically a remaining higher marginal percentage to the U.S. There are exclusions and credits, but they only go so far. Often they completely fail in localities where the nominal cost of living and pay is higher than the U.S. Think: Scandinavia and Switzerland. You don't get much sympathy arguing about this with countrymen, because the see the nominal amount and assume you live like a sheikh — until they visit and then comprehend that the economics are vastly different. Frankly it is very peeving since the United States' Revolutionary War motto was, "No Taxation without Representation." Sure we can vote from abroad, but no aspect of the U.S. political system acknowledges us or affords special treatment. Our votes are tied to this vague concept of last state of affiliation. God forbid someone lose a U.S. state driver license abroad and then have to reprove residence to that state for them to issue a new one. Happened to a friend here, and the process would have made Kafka blush. So the Swiss fraction is the base I always pay. I pay some amount extra to the U.S. At least CH has no capital gains taxes! This is one of the big reasons expats are very careful to follow the criteria each U.S. state has to avoid them claiming you were a tax resident and thus be subject to extra taxation without representation. Don't get this wrong. I believe in taxes and happily pay. I just want the society to have collective agreement that we will have successful governance and do something good. This whole half-assed approach the U.S. has been taking for decades makes me never want to return. I feel zero connection to the U.S. body politic. I regard it the same as a fuck up alcoholic relative whom the family has repeatedly helped but who always lets them down. Sorry. Among expats, this is very common theme.

CH income taxes are much lower than the USA, even when local income taxes are considered (canton tax is the only significant part, federal government in CH is not dominant). Americans living in CH who make more than $100k (very common) have to leverage the foreign housing deduction to avoid extra USA taxes.

CH VAT on the other hand is high...it's not like Switzerland doesn't have taxes. They are just different.

CH VAT is cheap compared to it's neighboring countries! Heck, let's not kid ourselves about sales taxes in the U.S.; they are not necessarily cheap!

Swiss consumer prices are super high except for cars, gas, and cigarettes compared to neighboring countries (France/Germany).

Thanks, so overall as a US expat in Zurich you wind up keeping more of your income than you would on the equivalent salary in the US? Is that correct?

It depends. I'm not a tax accountant, but if you make under $100k, most definitely. Above that, you are into ge foreign tax credit and can get screwed, except Swiss also has a high cost of living and you can leverage foreign housing deductions, so...it's complicated.

But if you actually buy things, pay rent, etc...you will spend a lot more than in the states, so it's really a wash. And like I said, Swiss still have taxes, just not high income taxes...again, it's hard to compare.

Disclaimer: I lived in Lausanne, not Zurich, but I expect they are similar.

CH VAT is 8%, how is that high?