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Glossary

Wealth Tax

Wealth Tax is an annual tax levied by the cantons and municipalities on the net assets of natural persons, that is, assets after deducting documented debts. The Confederation does not levy a wealth tax. What counts is the position at the end of the tax period, usually 31 December. Rates and social deductions are set by each canton, so the burden depends on the place of residence.

At a glance

  • Wealth Tax applies to total net assets, that is, gross assets less documented debts (StHG Art. 13 para. 1). Household effects and personal items of everyday use are tax-exempt (StHG Art. 13 para. 4).
  • Assets are valued at market value (StHG Art. 14 para. 1). What counts is the position at the end of the tax period (StHG Art. 17 para. 1).
  • Claims under Pillar 2 and Pillar 3a are exempt from direct taxes before they fall due (BVG Art. 84). Once paid out, the capital counts towards taxable assets from the next reference date (StHG Art. 17 para. 1).
  • Wealth Tax is levied only by cantons and municipalities. Rates and social deductions differ by canton, and in most cantons the rates are progressive (source: ESTV, dossier "Vermögenssteuer natürlicher Personen", available in German and French, as at 1 January 2026).

Frequently asked questions

In principle, all movable and immovable assets are covered, for example bank balances, securities, real estate, vehicles and the surrender values of insurance policies. What counts is net assets, that is, the amount after deducting documented debts. Household effects and personal items of everyday use are tax-exempt, as are Pillar 2 and Pillar 3a assets until they fall due.
Wealth Tax is levied exclusively by the cantons and municipalities. The Confederation does not levy a wealth tax. Because each canton sets its own rates and deductions, the burden differs considerably depending on the place of residence.
From the first reference date after payout, usually 31 December. Before they fall due, claims under Pillar 2 and Pillar 3a are exempt from direct taxes (BVG Art. 84). Once paid out, the capital forms part of net assets. The payout itself is taxed separately, under the Capital Withdrawal Tax (DBG Art. 38).

Part of the topic

Personal Taxes

Sources: ESTV, Dossier Vermögenssteuer natürlicher Personen (Stand 1. Januar 2026), DE · Systematische Rechtssammlung (fedlex), StHG SR 642.14, DE · Systematische Rechtssammlung (fedlex), BVG SR 831.40, DE

This entry is for general information purposes only and does not constitute investment, legal or tax advice. It is a simplified summary of the legal position and tax treatment.