Taxation of natural persons in the canton of Schwyz

Tax liability in the canton of Schwyz

Tax liability in the canton of Schwyz is based on the principles of Swiss tax law. The canton levies both cantonal taxes and direct federal tax. A special feature of the canton of Schwyz is the absence of inheritance and gift taxes.

Unlimited tax liability applies to tax residency or residence in the canton. Residence is defined as a stay of more than 90 days with gainful employment or more than 180 days without gainful employment. Limited tax liability applies to persons with an economic affiliation, in particular if they own real estate or business premises in the canton.

Type of tax liability	Prerequisites	Scope of taxation
Unlimited tax liability	Residence or qualified residence	Global income and assets
Limited tax liability	Economic affiliation	Swiss income and asset components
Withholding tax	Foreign employees without a permanent residence permit	Earned income in the canton
Lump-sum taxation	Qualified foreign nationals without gainful employment in Switzerland	Taxation according to expenditure

Tax return and assessment procedure

Tax returns are submitted electronically via the eTax.SZ portal. The centralised assessment by the Cantonal Tax Administration ensures standardised procedures for cantonal, municipal and federal taxes. The regular submission deadline ends on 31 March of the following year.

Deadline extensions can be requested up to the expiry of the regular deadline.

Digital submission procedure

Registration takes place via etax.sz.ch using the AHV number. Once you have registered, an activation code will be sent by post. The system enables the transfer of previous year's values and offers an integrated plausibility check. Receipts must be attached as PDF files (maximum 10 MB per file).

Tax optimisation through pension provision

Pillar 3a

The maximum deductible amounts for tied pension provision for 2026 are CHF 7,258 with pension fund affiliation and CHF 36,288 without pension fund affiliation (maximum 20% of net earned income). These amounts are fully deductible for both cantonal and federal tax purposes.

Pension fund purchases

Voluntary purchases into the occupational pension scheme are fully deductible from taxable income. After a purchase, there is a three-year blocking period for capital withdrawals. The tax effect corresponds to the individual marginal tax rate and can amount to between 20 and 35 per cent of the purchase amount.

The progression effect must be taken into account when planning pension fund purchases. Spreading larger amounts over several tax years can optimise tax savings.

Property taxation

The imputed rental value is taxed as income and generally amounts to 65 per cent of the local market rent. In return, debt interest and maintenance costs are deductible. The distinction between deductible maintenance and non-deductible value-enhancing investments follows the case law of the Federal Supreme Court.

For property maintenance, you can choose between a flat-rate deduction and a deduction of the actual costs each year. The flat-rate deduction is 10 per cent of the imputed rental value for properties less than 10 years old and 20 per cent for older properties.

Taxation in the case of self-employment

The distribution policy of corporations must be optimised between salary and dividends. Dividends from qualified participations are subject to reduced taxation of 50 per cent in the canton of Schwyz and 70 per cent for federal tax. The AHV obligation of the salary must be taken into account in the optimisation.

Form of distribution	Cantonal tax treatment	Federal tax treatment	Social insurances
Wages	100% controllable	100% controllable	AHV/IV/EO/ALV compulsory
Dividend (qualified)	50% controllable	70% controllable	No obligation

Family taxation and deductions

Married persons are assessed jointly. In the canton of Schwyz, a divisor of 1.9 is applied to mitigate the progressive effect. Federal tax has a separate rate for married couples.

Childcare costs are deductible up to CHF 8,000 per child and year in the canton of Schwyz (federal tax: CHF 25,800). The prerequisite is third-party care for children under the age of 14. The expenses must be fully documented.

Lump-sum taxation

Lump-sum taxation is available to foreign nationals who are moving to Switzerland for the first time or who have lived abroad for at least ten years. The prerequisite is the renunciation of any gainful employment in Switzerland. The assessment basis is at least CHF 600,000 or seven times the rental value or rent.

The procedure begins with a ruling application to the cantonal tax administration. The agreed assessment basis is generally valid for three years. A control calculation ensures that the lump-sum tax is at least equivalent to the ordinary taxation on Swiss income and assets.

Municipal taxes

Municipal tax rates in the canton of Schwyz vary between 55 and 145 per cent of the cantonal tax rate. The choice of municipality of residence therefore has a considerable influence on the overall tax burden.

Municipality	Tax rate 2026	Characteristic
Wollerau	50%	Lowest tax rate in the canton
Freienbach	50%	Second-lowest tax rate
Feusisberg	60%	Third-lowest tax rate
Schwyz	140%	Cantonal capital

Property tax

Wealth tax is standardised at 0.6 per thousand of taxable assets. This is one of the lowest rates in an intercantonal comparison.

Capital payment taxation

Lump-sum payments from occupational pension schemes and pillar 3a are taxed separately from other income at a reduced rate. Staggering withdrawals from different pension schemes can mitigate progression.

Withholding tax

Foreign employees without a permanent residence permit are subject to withholding tax. The tax rates are progressive and take into account marital status. From a gross income of CHF 120,000 per year, a retrospective ordinary assessment is carried out.

Legal protection and proceedings

Appeals against assessment decisions may be lodged with the Cantonal Tax Administration within 30 days. The objection decision can be appealed to the Administrative Court of the Canton of Schwyz. In federal tax matters, appeals may be made to the Federal Supreme Court.