Tax toggle PPP tool
Tax Toggle PPP Tool What Changes
The tax toggle PPP tool switches between a gross after pension view and a simplified after tax view before FX conversion and the PPP adjustment. It shows how your base changes the PPP adjusted salary and lifestyle delta.
Published: January 1, 2026 · Updated: January 1, 2026 · By FinToolSuite Editorial
Disclaimer
- Educational purposes only, not financial, tax, legal, or relocation advice.
- Examples are illustrative and simplified.
- Results depend on your inputs, PPP ratios, FX snapshots, and simplified tax assumptions and are not guaranteed.
- The tax toggle is not a payslip and may not match your real tax situation.
Quick answers
- Toggle off uses gross after pension only.
- Toggle on uses a simplified national tax estimate (not a payslip).
- FX and PPP steps happen after the chosen base.
- Compare scenarios to see the difference clearly.
Tax toggle PPP tool: what the toggle controls
Pipeline: base salary → pension adjustment → (optional tax estimate) → FX conversion → PPP adjustment → lifestyle delta. The toggle decides whether a simplified tax model sits between pension and FX.
On vs off comparison
| Setting | Base used | What is included | What is excluded | When it is useful |
|---|---|---|---|---|
| Tax engine off | Gross minus pension. | Pension adjustment only. | No tax modeling, no allowances or credits. | Quick gross comparisons or when you have your own net view. |
| Tax engine on | Gross minus pension and simplified tax. | National-level simplified tax estimate plus pension. | No city/local taxes, no detailed deductions, not a payslip. | Directional net view before FX and PPP steps. |
Why results change
- Net base changes when tax is applied.
- Lifestyle delta compares against the chosen base.
- Different countries have different simplified assumptions.
Simple illustrative example
| Mode | Base before FX | FX converted | PPP ratio | PPP adjusted | Lifestyle delta note |
|---|---|---|---|---|---|
| Toggle off | $60,000 (gross minus pension) | $62,000 | 0.9 | $68,900 | Higher buying power because prices are lower on average. |
| Toggle on | $50,000 (simplified net after pension) | $51,500 | 0.9 | $57,200 | Lower base leads to a lower adjusted result. |
Illustrative only. The toggle changes the base before FX and PPP. Rerun with your inputs to see both views.
Common misunderstandings
- Assuming “on” matches a payslip.
- Treating “off” as take home pay.
- Comparing runs with different toggle settings without noting it.
- Forgetting pension percent changes the base.
- Mixing pay frequencies between runs.
- Comparing different FX days without noting the snapshot.
- Assuming local taxes and credits are included.
- Thinking PPP is city specific.
- Expecting advice or recommendations.
- Over trusting a single run without saving scenarios.
Best practice: compare like for like
- Save a baseline scenario with your preferred toggle.
- Change one variable at a time.
- Save a second scenario with the other toggle for comparison.
- Export only if you need to share.
See how-to steps in the tool guide and scenarios in the examples.
FAQs
Should I leave tax toggle on?
Use it for a simplified national net view; turn it off for gross after pension comparisons.
What does tax toggle include?
A simplified national tax estimate plus your pension input. It is not a payslip.
Does it include state or local taxes?
No. Local layers may differ from the simplified model.
Why is my net lower than expected?
Pension plus the simplified tax model reduce the base. It will not match every payslip.
Is PPP adjusted salary the same as take home?
No. It is a buying power estimate after FX and PPP, not cash in hand.
Is this advice?
No. It is educational, not financial, tax, legal, or relocation advice.
Why do results differ across settings?
Changing the toggle, pension, FX snapshot, or PPP ratio shifts the base and downstream outputs.
Where can I learn more?
See the tax model limitations and the examples page.
Privacy and safe handling
- Use generic scenario names.
- Avoid entering personal identifiers.
- Treat exports as sensitive.
- See the Privacy Policy for data handling.