What do I pay taxes for?

09.02.2026

from Stephan Niggli

tax return Zurich

We all have to pay taxes so that our communities and our state can function. But it is often unclear what the money is actually spent on. A debate quickly arises as to whether the spending is efficient and effectively spent in the right places. What do I pay taxes for?

use of tax revenues

Specifically, the municipality, the canton and the federal government collect income taxes, which are Tax declaration by every citizen declared For these, the tax calculator offers more detailed insights into the distribution of expenses.

tax calculator

The tax calculator reveals which areas of the common good receive how much money. In the example, a single taxpayer with 100’000 For every 12 francs of gross income in Zurich, taxes to the city, canton, and federal government are added. In Baden, the figure is approximately 400 francs more. In the main expenditure category of education, almost 900% more is invested in Aargau than in the city of Zurich. However, more money is invested in universities in Zurich than in compulsory education.

What do I pay taxes for?
Source: srf.ch, tax data and 60 expenditure categories of municipalities and cantons for the years 2010-2016, calculations of taxes for 2019.

With the tax calculator you can not only compare communities, but also look at the bigger picture.

What do I pay taxes for? The purpose of tax expenditure

In summary, the following picture emerges for tax expenditure:

  • Number 1 expenditure is education with compulsory schooling as the foundation.
  • Social security with AHV, EL and other benefits.
  • Health care costs are primarily determined by hospitals and nursing homes.
  • Depending on the location, traffic follows. Tax revenue is used to build roads and operate public transport.
  • Police, fire brigade and judiciary are also fundamental services without which daily life would be unthinkable.
  • Culture, sports, leisure and church are also on the list of tax expenditures.

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