Capital withdrawal tax
The separate, reduced tax on lump sums from the pension fund, vested benefits and Pillar 3a.
It is taxed apart from other income, at a rate that rises with the amount and differs by canton. Spreading withdrawals over several years and accounts usually lowers the total.
Tools that use it
Related terms
- Lump sum (capital withdrawal)Taking pension-fund or 3a money as a one-off payment instead of a pension.
- Pillar 3aTax-advantaged private pension savings: contributions are deducted from taxable income, withdrawals are taxed separately at a reduced rate.
- Marginal tax rateThe tax you pay on your last franc of income, and therefore what you save on each deductible franc.
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Tax and insurance
Taxes in early retirement: canton, capital and wealth
What you pay when you live from savings in Switzerland: income, wealth and withdrawal taxes, why your canton matters and which levers are real.