Capital-withdrawal tax by canton: what you pay when you take your pension as cash

When you retire in Switzerland, you can take your retirement savings - your workplace pension (Pillar 2) and private 3a savings (Pillar 3a) - as a monthly pension, or as one big cash payment (a lump sum). If you take the cash, you pay a one-time capital-withdrawal tax. It's charged once, at a low rate - much lower than the tax on your salary. But your canton sets a big part of it, so the same payout can cost more in one place than another.

Educational information, not financial advice. Figures are for 2026 and may change.

How the tax works

• You pay once, not every year. The cash isn't added to your salary. It's taxed on its own.
• The rate is low. It's taxed much more gently than money you earn as pay.
• After that, it's just savings. Your savings then carry a small yearly tax (the "wealth tax"), like any money in the bank.

Why your canton and town change the amount

Each canton sets its own rate for this payout. Then your canton and your town each add a share on top. So two people who take the same amount can pay different tax - just because they live in different places.

Four cantons, four methods

Here's how four cantons handle it. Each one does the maths a little differently:

• Zürich - a base amount, then the canton and town add their share.
• Basel-Stadt - starts low and rises in steps.
• Basel-Landschaft - uses its own formula, with some reductions.
• Aargau - a reduced share of the normal tariff, with a minimum.

You don't need to follow the maths. The point is simple: they differ. So the only way to know your number is to work it out for your canton.

The bigger the payout, the higher the rate

The rate isn't flat. Take out more in one go, and a bigger slice goes to tax. That's the second reason timing matters - not just the canton.

So both things matter: your canton and the timing. Spreading your withdrawals across years can keep each year lower (see spreading your withdrawals).

One year vs spreading it out

Everything you take out in the same year is added together and taxed as one big amount. That can push you into a higher rate. Taking some this year and some next can keep each year smaller. (For married couples, many cantons add both partners' amounts together too.)

Good to know: a proposed change (not in force)

There was a plan to raise this tax from 2027 (Entlastungspaket 27). It's not law - as of mid-2026 it isn't moving forward, so today's rules still apply. We'll update this guide if that ever changes.

Common questions

Is the tax the same everywhere in Switzerland?

No. The national part is the same for everyone. But each canton adds its own rate, and so does your town - so Zürich, Basel-Stadt, Basel-Landschaft and Aargau all come out differently.

Does my town really make a difference?

Yes. Your canton and your town each add a share. So two people who take the same amount can pay different tax, just because they live in different places.

What if my partner and I both take cash?

In many cantons, a married couple's payouts in the same year are added together and taxed as one. That's why spreading them across different years can help.

See what you'd pay where you live

This is exactly the calculation SORVA does for you. Enter your pension and Pillar 3a balances and where you live, and SORVA calculates the estimated one-time withdrawal tax for your own canton and commune, using the official tax rules for Zürich, Basel-Stadt, Basel-Landschaft and Aargau. It also shows what changes if you take everything in one year versus spreading it over several, on your real amounts rather than a made-up example. And because married couples' same-year payouts are often added together, SORVA counts both partners where your canton does that. See what your own withdrawal could cost: create your plan at sorva.ch, free during the private beta.