Property tax: how much you pay in your canton
Many property owners in Switzerland have to pay annual property tax. Both the amount and the method of calculation vary depending on the municipality. Comparis explains what this tax is all about, and how to calculate it.
16.08.2022
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1. What is property tax, and who has to pay it?
Property owners in Switzerland must pay property tax in around half of the cantons. It is between 0.02% and 0.3% of the estimated property value, and is collected annually by the canton and/or municipality. The full value of the property is taxed.
Depending on the cantonal regulation, the owners or co-owners entered in the land register or any beneficial owners of the property are liable to tax. With property tax, you contribute to the maintenance of infrastructure. The tax is due in the location of the property. It doesn’t matter whether you have your tax residence at the property or not.
2. What are the different types of property tax?
Cantonal tax
The owner of the property is taxed directly by the canton.
The tax burden is not transferable to anyone else.
A direct property tax for natural persons is levied in Geneva and Thurgau.
Mandatory communal tax
This tax is levied by the municipalities.
Property tax is mandatory in Jura, St. Gallen, Ticino and Valais.
Optional communal tax
The municipality has the right to levy taxes, but is not obliged to do so. However, a tax waiver is rare.
Property tax is optional for natural persons in Appenzell Innerrhoden, Bern, Fribourg, Graubünden and Vaud.
Minimum tax
In some cantons, a minimum tax is levied on the property instead of the property tax if it is higher than the profit or capital tax (or income and wealth tax).
In most cases, only legal entities (e.g. companies, registered associations) are taxed.
It only applies to natural persons in Obwalden and Nidwalden and under special conditions in Uri.
It is levied in addition to ordinary property tax in Thurgau and Ticino.
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3. Which cantons or municipalities levy a property tax?
Property tax is proportional to the value of the property. The following table shows what rates to expect in your canton or municipality:
| Canton Persons |
Cantonal tax in per mille ‰ Natural |
Cantonal tax in per mille ‰ Legal |
Communal tax in per mille ‰ Natural |
Communal tax in per mille ‰ Legal |
|---|---|---|---|---|
| LU | 1.0 | |||
| UR | 300 CHF | |||
| OW | 2.0 | 2.0 | ||
| NW | 0.3* | 0.1 | ||
| BS | 2.0 | |||
| SH | 0.75* | |||
| AR | 2.0 | |||
| TG | 0.6* | |||
| TI | 1.0 |
*This is a simple approach that still needs to be multiplied by the tax rates of the canton and the municipality (and, in the case of TG, of the parish).
(Source: Swiss Federal Tax Administration, “Property Tax Information” dossier, March 2019)
4. How is property tax calculated?
Most cantons use the market value, the capitalized income value or a combination of the two when calculating the property tax. The market value usually corresponds to the selling price of the property. Important: any debts on the property are not taken into account in the tax calculation.
The capitalized income value is used above all for investment properties. In doing so, the authority determines the value of the property based on the income it generates (e.g. rental income). The capitalized income value is often used to determine the value of agricultural or forestry properties.
5. How do I calculate property tax in my canton?
To calculate property tax, you need the official or market value of the property, as well as the tax rate of the corresponding canton or municipality.
Calculation: Land value / 1000 × tax rate
Calculation example: annual property tax for a property worth 500,000 francs
Canton of Thurgau (direct taxation/cantonal tax)
Tax rate of 0.5‰ = 250 francs
Canton of St. Gallen (compulsory taxation/property tax)
Tax rate of, for example, 0.8 ‰ in the municipality of Altstätten = 400 francs
Canton of Bern (optional taxation)
Tax rate of max. 1.5‰ = max. 750 francs
Canton of Lucerne (minimum tax)
Tax rate of 0.5‰ = 250 francs
6. Who does not pay property tax?
Owners (natural and legal persons) of properties in the following cantons:
Aargau
Basel-Landschaft
Glarus
Schwyz
Solothurn
Zug
Zurich
Owners of land that serves public purposes (e.g. authorities, schools, churches)
Health insurance companies and health insurers
Legal persons whose properties serve cultural purposes
7. What other taxes do property owners have to pay?
In addition to property tax, property owners should expect to pay the following taxes:
Property gains tax
You have to pay property gains tax if you make a profit on the sale of your property.
The tax rate varies significantly depending on the canton and how long you owned the property.
Property transfer tax
You have to pay this tax when you transfer of ownership of a property (also in the case of inheritances and gifts).
It varies from canton to canton, and sometimes also from municipality to municipality.
Imputed rental value
This tax applies if you live in your property.
The imputed rental value must be taxed as income.
Wealth tax on property
You must declare your property as an asset on your tax return.
However, unlike property tax, you may deduct any debts here.
Find out from Comparis what costs to expect when you buy a property.
