Getrates.ch analysis shows Swiss retirement tax gaps by municipality
A retired couple living in the canton of Neuchâtel pays 337,161 Swiss francs more in taxes over a twenty-year retirement span compared to the same couple living in Zug, according to an analysis published by the platform Getrates.ch and reported by Watson on October 23, 2026. The comparison, which draws on data from the Swiss Federal Tax Administration, maps the stark fiscal divergence across Swiss municipalities for citizens concluding their working lives.
The simulation designed by Getrates.ch tracks a married couple both aged 65. The model assumes a simultaneous withdrawal of 500,000 francs from pension funds and pillar 3a private retirement accounts, an annual pension income of 80,000 francs, and a net taxable fortune of one million francs after deducting all outstanding debts and mortgages.
Tax Burdens in Zug and Neuchâtel
The geographic extremes of the study fall entirely within two cantons. Every municipality in the canton of Zug records a cumulative tax bill of less than 85,000 francs for the simulated couple over the twenty-year period. Freienbach in the canton of Schwyz follows closely as the least expensive location outside Zug, tallying 91,354 francs.
At the opposite end of the scale, Neuchâtel municipalities claim the highest tax loads in the country. The village of Les Verrières registers a twenty-year total of 416,530 francs for the identical financial profile, exceeding the Zug municipality of Baar by 337,161 francs. Outside Neuchâtel, the canton of Vaud records the highest burden, led by La Praz at 381,615 francs.
The Accumulation of Capital and Wealth Levies
Tax liabilities begin immediately upon retirement when pension and pillar 3a capitals are withdrawn. Cantons tax these lump sums independently of other income streams at reduced preferential rates. For a 500,000-franc withdrawal, Rongellen in Graubünden assesses 19,326 francs, while Jaun in Fribourg charges 49,176 francs. The Swiss median sits at 36,883 francs, with major cities such as Basel levying 46,926 francs and Zurich collecting 31,576 francs.
Subsequent annual taxes create even wider margins. In Baar, Zug, the simulated couple pays an annual tax bill of 2,629 francs on their 80,000-franc pension and one-million-franc fortune. In Les Verrières, the annual bill climbs to 18,635 francs—driven largely by a wealth tax of 7,308 francs per year compared to just 541 francs in Baar.
Even for more modest households with 50,000 francs in annual pensions and a 500,000-franc fortune, the gap persists. Baar collects 411 francs annually, whereas Schelten in Bern extracts 6,832 francs, accumulating a 128,420-franc difference over twenty years.
Internal Canton Variations Drive Retirement Cost Differences
Cantons display wide internal variations. In Fribourg, retiring in Jaun costs 114,520 francs more over twenty years than settling in Greng. Similar geographic divides appear between Meggen and Luthern in Lucerne, or between Flerden and Rongellen in Graubünden.
Retirees attempting to lower their liabilities through relocation must meet strict calendar deadlines. Swiss tax authorities assess income and wealth taxes based on the place of residence on December 31. A move executed on December 30 applies the new municipality’s tax rate for the entire year, while relocating on January 2 leaves the prior municipality entitled to the full year’s revenue. Lump-sum pension withdrawals follow a separate rule, taxed strictly in the municipality where the taxpayer resides on the exact day of disbursement.