Pension Withdrawal Tax Calculator
Calculate the tax on capital withdrawals from pension funds and Pillar 3a.
The pension withdrawal tax calculator computes the tax on payouts from pension funds (2nd pillar) and Pillar 3a for every Swiss municipality. The pension withdrawal tax is levied separately from other income and varies considerably by canton.
How is the pension withdrawal tax calculated?
At the federal level, the tax is calculated according to Art. 38 DBG: one fifth of the capital is taxed as notional income, and the resulting tax is multiplied by five. The cantons use different methods -- some apply the same one-fifth tariff, others have fixed percentages or their own progressive tariffs.
The total burden consists of federal tax, cantonal tax, municipal tax, and possibly church tax. The cantonal comparison is shown by the cantonal pension withdrawal tax calculator.
When is pension withdrawal tax due?
The tax becomes due upon the following events:
- Retirement: Withdrawal of pension fund balance as a lump sum instead of an annuity
- Pillar 3a payout (earliest 5 years before the standard retirement age)
- Emigration: Withdrawal of vested benefits when leaving Switzerland (outside EU/EFTA)
- Taking up self-employment
- Pension fund purchase and withdrawal within 3 years (waiting period)
Withdrawals by both spouses in the same tax year are aggregated, increasing the progression. Staggering across different years is therefore advisable.
Frequently Asked Questions
- How high is the pension withdrawal tax in Switzerland?+
- Are withdrawals by spouses aggregated?+
- Is a lump sum or an annuity more worthwhile?+
- Can the pension withdrawal tax be reduced?+
- Is the pension withdrawal tax offset against income tax?+