Capital-withdrawal tax by canton: what you pay when you take your pension as cash
| 01 | How the tax works |
| 02 | Why your canton and town change the amount |
| 03 | Different cantons, different methods |
| 04 | The bigger the payout, the higher the rate |
| 05 | One year vs spreading it out |
| 06 | Good to know: a proposed change (not in force) |
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.
In one line: take your pension as cash and you're taxed once, at a low rate — but your canton and town decide how much.
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.
Different cantons, different methods
Cantons don't all use the same mechanism. These are the main approaches you'll come across:
- A base amount, then a top-up — the canton and town each add their share.
- A step tariff — starts low and rises in steps.
- A canton-specific formula — its own calculation, sometimes with reductions.
- A reduced share of the normal tariff — often 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.)
A quick example (made up, to show the idea): say you take CHF 500'000 as cash. The national part is taxed once, at the low rate. Then the canton-and-town part is added — and that part is bigger in some cantons than others. The exact numbers depend on your canton and town, and follow the official Swiss tax rules.
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 two cantons can come out quite differently on the same payout.
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 the cantons it supports. 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 public beta.
Educational information, not financial advice. Figures are for 2026 and may change.