{"id":8589,"date":"2023-12-05T22:05:16","date_gmt":"2023-12-05T21:05:16","guid":{"rendered":"https:\/\/www.smolio.ch\/wissen\/capital-payment-tax\/"},"modified":"2024-10-03T14:05:08","modified_gmt":"2024-10-03T12:05:08","slug":"capital-payment-tax","status":"publish","type":"post","link":"https:\/\/www.smolio.ch\/en\/wissen\/capital-payment-tax\/","title":{"rendered":"Capital payment tax"},"content":{"rendered":"Lesedauer<\/span> 2<\/span> Minuten<\/span><\/span>\n

If you are liable for tax in Switzerland and withdraw money saved from your pension plan, you will be subject to a tax: the lump-sum payment tax (also known as capital tax or capital withdrawal tax).\nIt is levied on pension payments and taxes both capital benefits from occupational pension provision (2nd pillar and vested benefits) and benefits from tied pension provision (pillar 3a). <\/p><\/div>\n\n

Capital payment tax is not only payable when you retire and have your capital paid out, but also when you make an early withdrawal for home ownership<\/a>.\nBut the good news is: if you \u201cpay\u201d this money back into the pension fund, you get the lump-sum payment tax back.\nA really nice touch, thank you! <\/p><\/div>\n\n

Important: Capital payment tax is calculated independently and separately from your taxable income.\nIt therefore doesn\u2019t matter how high your taxable income is in the year you withdraw the capital. <\/p><\/div>\n\n

How high is the capital payment tax?<\/h2><\/div>\n\n

A reduced rate is applied for federal tax purposes for lump-sum payments from pension plans.\nThis is also the case in all cantons.\nAnd of course your municipality and the church also receive their share of the capital tax. <\/p><\/div>\n\n

The amount of capital withdrawal tax you have to pay depends on your place of residence.\nThe tax authorities add up all withdrawals of pension assets from the pension fund, vested benefits account and pillar 3a made in the same tax year.\nThe total amount then determines the tax rate.\nMost cantons tax lump-sum payments at between 5 % and 10 %.\nThis is many times less than the marginal tax rate on your income.\nThis is usually between 25% and 40%. <\/p><\/div>\n\n

You can compare the capital payment tax on pension benefits with the income tax on your salary.\nLike income tax, it is progressive in most cantons. Tax progression<\/a> means that a higher tax rate applies to higher pension assets than to lower pension assets.\nSo if you withdraw CHF 100,000, the tax is more than twice as high as if you withdraw CHF 50,000.\nIn short: the more you withdraw in one year, the higher your tax rate will be. <\/p><\/div>\n\n

You can therefore optimize your tax burden with early planning.\nFor example, by preparing and implementing a staggered withdrawal over several years. <\/p><\/div>\n\n

How high is the capital payment tax in my canton?<\/h2><\/div>\n\n

The amount differs not only according to the amount received, but also according to the canton and place of residence in the canton.\nFor example, only 2.60 % tax is levied on CHF 100,000 in Appenzell Innerhoden, the cantonal capital, and 5.09 % on CHF 500,000.\nBasel-Stadt, on the other hand, taxes the same amount at 9.4 %.\nThe low-tax canton of AI is followed by Nidwalden and Schaffhausen in 2nd and 3rd place. <\/p>\n\n