Swiss Inheritance Tax 2026: What You Actually Pay

Your parents are talking about their will. Or you're thinking about gifting your daughter part of your savings now, instead of waiting until after your death. Either way, the same question comes up sooner or later: how much of it actually goes to the state?

The short answer: it depends almost entirely on your canton. There's no federal inheritance tax in Switzerland. Instead, every canton has its own law, with its own tax-free allowances and its own rules for spouses, children, siblings and everyone else. Two cantons don't levy the tax at all.

On 30 November 2025, Swiss voters clearly rejected a national inheritance tax on the super-rich. That doesn't change the cantonal patchwork one bit, if anything it confirms that it's here to stay. We'll show you how the system works, where even direct descendants get taxed and what to watch for if you're gifting money during your lifetime.

No federal tax, 26 cantonal systems

Unlike income tax, there's no federal layer for inheritance and gift tax. The Confederation simply has no constitutional authority to levy one, so the competence sits entirely with the cantons. The result: 26 different laws, each with its own rates, allowances and exceptions.

Two cantons opt out entirely: Schwyz and Obwalden levy neither an inheritance tax nor a gift tax, no matter how large the amount or how closely related the heir is. Lucerne also skips the gift tax, though gifts made in the five years before death are taxed retroactively as part of the estate, a common safeguard against last-minute tax avoidance.

Most other cantons levy what's called an inheritance-received tax: what matters isn't the size of the whole estate, but how much a specific heir receives and how closely related they were to the deceased. Only Solothurn additionally taxes the entire estate as a lump sum before it's even distributed.

For context: inheritance and gift taxes brought cantons and municipalities around CHF 1.4 billion in 2022 combined. That sounds like a lot, but it's only about 0.9 percent of total tax revenue collected by the Confederation, cantons and municipalities. For public budgets, this tax is a side note, for the individual family affected, it's often a painfully concrete bill.

Spouses never pay, children depend on the canton

One rule applies without exception in all 26 cantons: spouses and registered partners inherit completely tax-free, regardless of the size of the estate. Your own children and grandchildren are treated almost as generously in most cantons, but not everywhere.

*Individual municipalities in Lucerne may levy their own tax on descendants once a single transfer exceeds CHF 100,000.

Source: ESTV/SSK dossier "Inheritance and gift taxes", legal status as of 1 January 2025. Own selection and simplification, exact allowances and exceptions, for example for stepchildren, foster children or godchildren, vary in detail from canton to canton.

Three cantons stand out from the trend: Neuchâtel, Vaud and Appenzell Innerrhoden tax direct descendants too, once the allowance is used up, in Neuchâtel starting at just CHF 50,000 per child. If you or your parents live in one of these cantons and a larger inheritance or gift is on the horizon, it's worth checking the cantonal allowances before transferring large amounts.

Worked example: A daughter inherits CHF 400,000 in cash and securities from her late mother, no property involved. If the mother's last residence was Zurich, Bern or most other cantons, the daughter pays no inheritance tax at all. If the mother lived in Neuchâtel instead, only the first CHF 50,000 is tax-free, and the remaining CHF 350,000 is subject to cantonal inheritance tax. Same inheritance, same relationship, a completely different outcome, just because the mother happened to live in a different canton.

What always matters is the deceased person's last canton of residence, or for real estate, the canton where the property is located. Moving shortly before death doesn't change anything by itself, tax law follows actual residence, not a last-minute preference.

One notable exception to this otherwise generous picture: unmarried couples. Without a marriage certificate, you count as "unrelated" for inheritance purposes in most cantons, and therefore fall into the most expensive category there is. Some cantons soften this considerably after several years of living together, others not at all. We cover how to protect your unmarried partnership in detail, and which cantons offer which exceptions, in our cohabitation guide.

Advance inheritance vs. gift: why the distinction matters

If you give money away during your lifetime, the law distinguishes between two cases that are often taxed similarly but have very different legal consequences.

An advance on inheritance is any transfer to someone who would inherit from you anyway under the statutory reserved share, typically your children (Art. 626 Swiss Civil Code). This transfer is subject to a duty of hotchpot: at the later division of the estate, it gets credited against that person's share, so that all children end up receiving the same total amount, regardless of who received something earlier in life. This duty applies indefinitely in Switzerland, even a gift from twenty years ago still counts.

A gift to someone outside the circle of statutory heirs, say a niece, a godchild or a close friend, isn't subject to this duty at all.

As the giver, you can explicitly exempt a transfer to a child from the hotchpot rule. This has to be stated explicitly in a deed of gift, a will or an inheritance contract, otherwise the standard legal rule applies automatically. Even with such an exemption, you can't violate the other children's statutory reserved shares. If you transfer a larger amount to a child today, say as a down payment for a home, it's worth documenting that intention in writing. Otherwise, disputes between siblings over what counted as an advance and what didn't tend to surface years later.

For tax purposes, most cantons treat gifts the same as inheritances, with identical allowances and rates. Several cantons also count gifts made in the years before death retroactively as part of the estate, so the tax can't be avoided through quick gifts near the end of life.

The Juso initiative failed, here's what stays

On 30 November 2025, Switzerland voted on the Young Socialists' initiative, which called for a 50 percent tax on the portion of estates and gifts exceeding CHF 50 million, earmarked for climate protection. The result was clear: around 79 percent voted no. The initiative was accepted only in the city of Bern and in the 34-resident village of Schelten in the Bernese Jura.

For the vast majority of people, who will never come close to an estate of CHF 50 million, this result changes little directly. The real effect lies elsewhere: it confirms that the cantonal patchwork on inheritance tax is here to stay for the foreseeable future. A federal harmonization isn't politically on the table, in either direction.

For your own planning, that means the rules of your canton of residence, and your parents', remain the relevant benchmark, not some possible future federal solution. If you live in a canton with low allowances, or you're moving to one, it's worth factoring that into your estate planning early, not after the fact.

Practical tip: ask your tax office early

Most cantonal tax offices will answer questions about allowances and rates for inheritances and gifts free of charge and without obligation, even before an inheritance actually occurs. That's especially worthwhile if the person leaving the estate and the heirs live in different cantons, or if a larger lifetime gift is being planned. It'll tell you upfront whether spreading a gift over several years makes sense, since many cantons grant allowances per year rather than once. A quick call won't replace proper advice, but it often gives you the crucial first read on your situation.

Frequently asked questions

Do I have to report the inheritance tax myself?

Usually not for an inheritance. The relevant cantonal tax office is automatically notified once an estate is opened, typically through the probate office or the notary, and will send you the assessment afterwards. For a lifetime gift, you're often required to report it yourself, and deadlines vary by canton.

Does my pillar 3a count towards the taxable estate?

Payouts from pillar 3a and pension fund accounts to named beneficiaries are usually subject to a separate, often more favourable lump-sum withdrawal tax instead of ordinary inheritance tax, because they pass directly to the beneficiary outside the estate itself. How a pure risk life insurance policy (pillar 3b) is treated varies by canton, so check with your tax office if you're unsure.

What if the deceased and the heir live in different cantons?

What matters is the deceased person's last canton of residence, not where the heir lives. For real estate, the canton where the property is located also applies, regardless of the deceased person's residence.

Conclusion: your canton sets the bill, not the Confederation

Switzerland's inheritance tax remains a patchwork of 26 cantonal solutions, and the clear rejection of the Juso initiative means that isn't changing anytime soon. For spouses, it's simple everywhere: tax-free. For children, that's true almost everywhere too, with three well-known exceptions. The biggest grey area is unmarried couples, where the differences between cantons are largest.

Before planning a larger gift or writing your will, it's worth checking the rules in your canton of residence. We show you how to write a legally sound will in our will guide, and how unmarried couples can protect each other legally in our cohabitation guide.