Wealth Tax (Vermögenssteuer)
Definition
An annual cantonal tax levied on the net value of an individual's global assets and wealth.
Key Takeaways
- Wealth Tax is an annual cantonal tax on net global assets, ranging from 0.1-1% depending on canton.
- Taxes all assets (real estate, investments, cash, cars) minus debts; Pillar 2/3a exempt.
- Most cantons exempt first CHF 50,000-100,000 of wealth; rates vary dramatically by canton.
- Low-tax cantons: Schwyz (0.15%), Nidwalden (0.1%); high-tax: Bern, Basel-Stadt (up to 1%).
Detailed Explanation
Wealth Tax (Vermögenssteuer) is an annual tax levied by Swiss cantons on the net value of your worldwide assets. Unlike most countries, Switzerland taxes not just income but also accumulated wealth. Each canton sets its own wealth tax rates and exemption thresholds. Federal Switzerland does not levy wealth tax—only cantons and municipalities do.
For 2026, wealth tax rates vary dramatically by canton, typically ranging from 0.1% to 1% of net wealth annually. Most cantons provide exemptions for lower wealth levels (e.g., first CHF 50,000-100,000 exempt). Assets taxed include bank accounts, investments, real estate, cars, and business holdings, minus debts like mortgages. Retirement assets in Pillar 2 and 3a are exempt. Low-wealth-tax cantons include Schwyz (0.15%) and Nidwalden (0.1%), while Bern and Basel-Stadt charge up to 1%.