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Pension fund lump sum withdrawal: how much tax you pay in your canton
The tax on pension fund lump-sum withdrawals in Switzerland varies dramatically from canton to canton. A comparison of all 26 cantons - with the exact amounts from Taxware 2025 and the official FTA tax calculator. Cantonal capital, single, without church tax.
| Primary sources | VermoegensPartner AG (Taxware 2025) for CHF 100,000 and CHF 500,000. finpension AG (based on FTA tax calculator) for CHF 1,000,000. |
| Cross-validation | Each cell compared individually across all 26 cantons - deviation less than 0.1 %, purely due to rounding. |
| Methodology | Cantonal capital, single, age 65, without church tax. Incl. federal, cantonal and municipal tax. |
You're 62, your pension certificate is on the table. Pension or lump sum? If you opt for a lump sum, the canton of residence will deduct between just under four and almost twelve per cent of your withdrawal as a one-off tax. For CHF 500,000, this is between CHF 25,703 and CHF 49,545, and for CHF 1,000,000 between CHF 53,400 and CHF 111,600. Not a typo.
This page shows you a comparison of all 26 cantons, with the exact amounts from Taxware 2025 and the official FTA tax calculator. Each figure is checked against the primary source. Cantonal capital, single person, without church tax, as at tax period 2025/2026.
| Spread at CHF 500,000 | CHF 25'703 (Appenzell Innerrhoden) to CHF 49'545 (Appenzell Ausserrhoden) - CHF 23,842 difference with identical purchase |
| Spread at CHF 1,000,000 | CHF 53'400 (Appenzell Innerrhoden) to CHF 111,600 (Zurich) - CHF 58,200 difference |
| Methodology | Cantonal capital, single, without church tax, age 65 |
| Sources | vermoegens-partner.ch (Taxware 2025) and finpension.ch (FTA calculator), each figure cross-validated |
Why the canton makes such a difference
If you have your Pension fund assets as capital, a one-off tax is due. It is calculated separately from other income, at a reduced rate. Legal basis: Art. 38 DBG for direct federal tax, supplemented by the cantonal tax laws.
So far, so simple. But: The amount of this tax depends massively on the canton of residence. At CHF 1,000,000, the difference between the most favourable canton (Appenzell Innerrhoden: CHF 53,400) and the most expensive canton (Zurich: CHF 111,600) is exactly CHF 58,200. At CHF 500,000, the difference between Appenzell Innerrhoden (CHF 25,703) and Appenzell Ausserrhoden (CHF 49,545) is CHF 23,842.
This is not a marginal issue. Anyone who is about to retire and is thinking about moving away should know these figures. The same goes for those who are not moving - because the amount affects you directly and because a staggered payment can significantly reduce progression.
The table: A comparison of all 26 cantons
Attention: The ranking changes depending on the reference amount. Schwyz is the most favourable for CHF 100,000 and Appenzell Innerrhoden for CHF 1,000,000. The cantonal tariffs are progressive in different ways.
Sorting: ascending by CHF 100,000. Calculation: cantonal capital, single, excluding church tax. All amounts in CHF, incl. federal, cantonal and municipal tax.
| Canton | Main town | CHF 100,000 | CHF 500,000 | CHF 1'000'000 |
|---|---|---|---|---|
| Schwyz | Schwyz | 2'151 | 38'832 | 95'500 |
| Train | Train | 2'805 | 28'818 | 62'800 |
| Schaffhausen | Schaffhausen | 3'176 | 26'838 | 55'700 |
| Grisons | Chur | 3'238 | 28'803 | 59'600 |
| Freiburg | Fribourg | 3'238 | 46'506 | 104'000 |
| Appenzell I.Rh. | Appenzell | 3'312 | 25'703 | 53'400 |
| Nidwalden | Stans | 3'640 | 27'729 | 57'400 |
| Lucerne | Lucerne | 3'762 | 31'087 | 65'300 |
| Basel-Landschaft | Liestal | 3'838 | 33'603 | 95'600 |
| Uri | Altdorf | 4'243 | 29'028 | 60'000 |
| Ticino | Bellinzona | 4'398 | 35'734 | 80'900 |
| Vaud | Lausanne | 4'456 | 40'908 | 90'600 |
| Geneva | Geneva | 4'608 | 37'065 | 81'100 |
| Bern | Bern | 4'629 | 41'261 | 96'200 |
| Wallis | Sion | 4'738 | 43'925 | 103'000 |
| Aargau | Aarau | 4'846 | 41'082 | 87'700 |
| Zurich | Zurich | 4'878 | 35'805 | 111'600 |
| Solothurn | Solothurn | 4'969 | 38'197 | 78'400 |
| Glarus | Glarus | 5'166 | 33'643 | 69'300 |
| Basel-Stadt | Basel | 5'288 | 47'253 | 99'700 |
| Obwalden | Sarnen | 5'657 | 36'099 | 74'200 |
| Neuchâtel | Neuchâtel | 5'729 | 42'599 | 87'500 |
| St. Gallen | St. Gallen | 5'884 | 37'233 | 76'500 |
| Law | Delémont | 6'174 | 48'185 | 101'100 |
| Thurgau | Frauenfeld | 6'610 | 40'863 | 83'700 |
| Appenzell A.Rh. | Herisau | 7'938 | 49'545 | 111'400 |
Sources: vermoegens-partner.ch (Taxware 2025, CHF 100,000 and CHF 500,000) and finpension.ch (FTA tax calculator, CHF 1,000,000). Details in the methodology block below.
What stands out? 5 Findings from the data
1 For small amounts: Schwyz is the most favourable
The tax burden on capital withdrawals in Switzerland is highly progressive. For CHF 100,000, you only pay CHF 2,151 in tax in Schwyz (2.15 % of the withdrawal). The most expensive: Appenzell Ausserrhoden with CHF 7,938 (7.9 %). The difference: CHF 5,787, almost four times as much. Cantons with low taxes at CHF 100,000 are not necessarily among the most favourable at CHF 1,000,000.
2 For large amounts: Appenzell Innerrhoden overtakes Schwyz
At CHF 1,000,000, Appenzell Innerrhoden is the most favourable (CHF 53,400). Schwyz jumps to CHF 95,500 because the rate is highly progressive. Anyone planning a high withdrawal must check the progression, not just the basic rate. The ranking of the cantons shifts, sometimes drastically, as the amount increases.
3 Zurich penalises high salaries disproportionately
The canton of Zurich penalises high capital withdrawals disproportionately: at CHF 100,000, Zurich is in the midfield (CHF 4,878); at CHF 1,000,000, it is the most expensive canton at CHF 111,600 - just ahead of Appenzell Ausserrhoden (CHF 111,400). The progression is extremely steep.
4 Freiburg has a leap
At CHF 100,000, Fribourg is one of the most favourable cantons (CHF 3,238). At CHF 500,000, the tax jumps to CHF 46,506 - that is 23rd place out of 26. Fribourg is a prime example of a progressive rate that favours low incomes and disproportionately burdens high incomes.
5 Church tax is added
All values are calculated without church tax. Depending on the canton and denomination, a surcharge of around 4 % to 15 % is added to the cantonal income or capital tax. Examples: Zurich (Roman Catholic) around 10 %, Bern (Reformed) around 19 % of cantonal tax, Basel-Stadt (Reformed) around 8 %, Nidwalden (Roman Catholic) around 4 %. Reference values 2025 - check the current church tax rate in your municipality of residence for your specific burden. If you are non-denominational, you have a real tax advantage when withdrawing capital - several thousand francs for large amounts.
Sample calculation: What does this mean in concrete terms?
Imagine you are 65 years old, single, live in Zurich and withdraw CHF 500,000 from your pension fund as capital.
- In Zurich
- CHF 35'805
- In Schaffhausen
- CHF 26'838
- Surprise - in Schwyz
- CHF 38'832
Schwyz is famous as a tax haven. But only for low amounts. At CHF 500,000, the cantonal progression takes full effect - Schwyz is even more expensive than Zurich. The difference between Zurich and Schaffhausen: CHF 8'967. That's one month's living costs that you have more or less, depending on where you live.
At CHF 1,000,000 it becomes more drastic. Zurich: CHF 111,600, Appenzell I.Rh.: CHF 53,400. Difference: CHF 58'200.
Is it worth moving for the capital withdrawal?
The honest answer: usually not. But our advice is more nuanced than the classic «not worth it».
When a move can be worthwhile from a financial point of view: In the case of a high income (CHF 800,000 or more), if the current canton of residence is in the top third and a more favourable canton is realistically within reach. A difference of CHF 40,000 to 60,000 is in the order of magnitude that can justify a move in purely mathematical terms - if you are considering it anyway.
When a move is not worthwhile: The absolute difference between the cheapest and most expensive canton is usually less than CHF 15,000 - this does not justify a move if your life is anchored elsewhere.
What you need to know if you want to move: The tax is levied at the tax domicile in the year of receipt. The tax authorities check the actual centre of life - not just the registration. If you move three months before you move in without actually living there, this will be classed as a sham residence and taxed retroactively at your old place of residence. Documents that count: Rental agreement or purchase contract, insurance policies, tax bills, neighbours as witnesses, actual presence. The exact criteria for tax residence are defined in the Tax Harmonisation Act (Art. 3 StHG) and the cantonal tax administration - consult a tax expert if you are unsure about your status.
The Schwiizerfranke attitude: The tax canton is a building block, but not the most important one. For most people, social ties, family, infrastructure and quality of life count at least as much as a five-figure tax bill. Anyone moving for tax reasons should complete the move at least 1 to 2 years before moving in and follow it through consistently. If you are already close to moving, you are more likely to save tax by staggering your move (see next section) than by rushing to move.
In one sentence: Those who are not moving anyway are more likely to save taxes by staggering than by cantonal shopping.
What you should bear in mind
Staggered purchase saves taxes
The rate is progressive in most cantons. Anyone who withdraws their pension fund assets spread over several years (e.g. pension fund and Pillar 3a in different years), pays less. But: The tax authorities add up capital withdrawals from pension schemes at least within the same year, and in many cantons also the withdrawals of the spouse. Some cantons also check withdrawals over several years - the exact rule may vary from canton to canton and should be checked with the tax authorities in your canton of residence if you want to stagger several withdrawals.
A single person in Zurich receives CHF 700,000 (pension fund CHF 500,000 + 3a CHF 200,000).
- All in one year (CHF 700,000 cumulative)
- around CHF 56,300
- Staggered: CHF 500,000 year 1 + CHF 200,000 year 2
- around CHF 46'605
- Difference (savings through graduation)
- around CHF 9'700
More than most people spend on a single counselling appointment - and it's completely legal. Important: The actual savings depend on the canton of residence, marital status and spouse scale. The figures above are a guideline, not your personal result. (The individual figures of CHF 35,805 and CHF 10,800 are based on the official FTA tax calculator, as at 2025/2026. The cumulative 700k figures are modelled on this - use the FTA calculator for your exact situation).
Spouses are counted together
Married couples are taxed jointly in most cantons. If both draw capital in the same year, the progression increases. Planning pays off.
Don't forget your church tax
Our table shows values without church tax. Depending on the canton and denomination, this can mean an additional 5 % to 15 %. If you leave the church before withdrawing, you save this amount. This is a personal decision, not a tax tip.
Your actual amount may vary
We show standard scenarios for the cantonal capital. Your municipality may have a different tax rate. The actual tax can vary significantly depending on the municipality within a canton and may be several thousand francs higher or lower than the values shown here. For your exact calculation, use the official FTA tax calculator.
Methodology and sources
Transparency is important to us. Here we document exactly how these figures are arrived at. You can find out more about our approach in the FinanceTimetable.
Each figure checked against two primary sources
Taxware 2025 for CHF 100,000 and CHF 500,000, FTA tax calculator for CHF 1,000,000 - all 26 cantons individually synchronised.
Commune: Cantonal capital (all 26 cantons). Marital status: single. Church tax: explicitly excluded. Age at receipt: 65 years. Taxes included: Federal, cantonal and communal tax.
VermoegensPartner AG, based on Taxware 2025, absolute CHF amounts adopted directly.
finpension AG, based on the official FTA tax calculator. Percentages converted into CHF, rounded to CHF 100.
The values for CHF 100,000 and CHF 500,000 were reconciled between the two sources. Deviation less than 0.1 %, purely due to rounding.
Source links
Frequently asked questions about pension fund capital tax
Capital withdrawals from the 2nd pillar (pension fund) and Pillar 3a are taxed separately from other income, at a reduced rate. The tax is payable once, in the year of receipt, at the tax domicile. Legal basis: Art. 38 DBG for direct federal tax, supplemented by the cantonal tax laws.
Yes, in most cantons all lump-sum withdrawals from pension schemes (2nd pillar and 3a) within one year are totalled. In many cantons, the withdrawals within 5 years and the spouse's withdrawals are also aggregated.
In principle, yes. Tax is levied at the place of residence. However, the tax authorities check the actual centre of residence. A fictitious move shortly before moving in will not be accepted. However, anyone planning a move anyway should be aware of the tax difference.
It depends on the amount. Schwyz is the most favourable for CHF 100,000 (CHF 2,151). For CHF 1,000,000, Appenzell Innerrhoden is the most favourable (CHF 53,400). The order changes because the rates are progressive in different ways.
No. All values are calculated without church tax. Depending on the denomination and canton, a surcharge of around 4 % to 15 % is added.
The data is based on Taxware 2025 (VermoegensPartner AG) and the FTA tax calculator (finpension AG). Status: tax period 2025/2026. Audit frequency: annually, audit months February and March (new tax data Q1 of the following year).
Example Zurich, single, CHF 700,000 total income: all in one year around CHF 56,300 in taxes. Staggered over two years (CHF 500,000 + CHF 200,000) around CHF 46,605. Difference: around CHF 9,700 savings from the calendar alone. The actual savings depend on the canton of residence, marital status and spouse staggering.
Yes, lump-sum withdrawals from Pillar 2 (PF) and Pillar 3a are taxed at the same reduced pension rate. In the case of separate withdrawals, the tax values apply individually for each withdrawal. For joint withdrawals in the same year, they are totalled in most cantons.
Conclusion: What does this mean for you specifically?
The main message. The canton of residence in the year of your capital withdrawal determines a five- to six-figure tax amount. For CHF 1,000,000, the difference between the most favourable and the most expensive canton is CHF 58,200. That's not a nuance, that's a single-family home down payment.
To whom this applies. Especially for readers who are about to retire or are planning a substantial pension fund withdrawal in the next ten years. Anyone drawing less than CHF 200,000 can take note of the table - the absolute differences there are too small to justify life decisions. Anyone drawing over CHF 500,000 should be familiar with every figure in the table before signing the implementation form.
The most important reason. The cantonal tariffs are progressive to varying degrees. Schwyz is the most favourable canton at CHF 100,000 (CHF 2,151), but falls back to CHF 95,500 at CHF 1,000,000. Appenzell Innerrhoden is the other way round. Anyone planning to make a withdrawal must link their own amount to their own line in the table - and not rely on generalised 'tax haven' rankings.
The clean exception. Staggered withdrawals - pension fund in one year, pillar 3a in another, possibly partial retirement spread over several years - can significantly reduce progression. This is often more effective than any discussion about relocation, and it is legal as long as the cantonal rules on aggregation are observed.
The next step. Three things you can do this week: 1) Take out your current pension certificate and read off the projected capital amount. 2) Find the line for your canton in the table above and calculate the tax for your amount (or go to the official FTA tax calculator look it up). 3) Discuss with your partner or a trusted person whether a staggered withdrawal is possible for you. If you still have questions after these three steps, you should talk to a tax expert - not the other way round.
No tax advice. For your individual situation, we recommend that you speak to a tax expert or use the official FTA tax calculator.