Appenzell Ausserrhoden Wealth Tax Cases
Appenzell Ausserrhoden Wealth Tax: Cases & Worked Examples
Illustrative computations reflecting AR’s low cantonal base and materially varying municipal coefficients across communes.
The examples below illustrate how Appenzell Ausserrhoden’s low cantonal wealth tax combines with significantly differing municipal tax rates among communes such as Teufen, Herisau, Heiden, Speicher, Trogen and others. Values use indicative 2025 figures for demonstration purposes.
Figures rounded; church tax ignored. Municipal coefficients reflect realistic ranges published by the canton.
Case A — Single Professional in Teufen (Low-Tax Commune)
- Commune: Teufen (approx. coefficient 1.55 of simple tax)
- Assets: CHF 1,000,000 (securities & cash)
- Liabilities: none
- Allowance: ≈ CHF 80,000 (single)
| Taxable net wealth | CHF 920,000 |
|---|---|
| Cantonal simple wealth tax | ≈ 0.12% → CHF 1,100 |
| Combined cantonal & municipal factor | × 1.55 |
| Wealth tax due | ≈ CHF 1,705 |
| Effective rate | ≈ 0.17% |
Observation: Teufen’s low municipal coefficient keeps effective wealth tax well below Swiss averages at this asset level.
Case B — Married Couple with Two Children in Herisau (Higher-Tax Centre)
- Commune: Herisau (approx. coefficient 2.41 of simple tax)
- Assets: CHF 2,500,000 (home + portfolios)
- Liabilities: CHF 700,000 mortgage
- Allowances: ≈ CHF 200,000 (married + children add-ons)
| Net wealth | CHF 1,800,000 |
|---|---|
| Less allowances | − CHF 200,000 |
| Taxable wealth | CHF 1,600,000 |
| Cantonal simple wealth tax | ≈ 0.11% → CHF 1,760 |
| Combined cantonal & municipal factor | × 2.41 |
| Estimated tax | ≈ CHF 4,240 |
| Effective rate | ≈ 0.24% |
Planning angle: Same wealth level, but municipal coefficient nearly 55% higher than Teufen — location matters.
Case C — Entrepreneur with Private Company Shares in Heiden
- Commune: Heiden (approx. coefficient 2.20 of simple tax)
- Unlisted shares: CHF 3,000,000 (practitioner method)
- Other assets: CHF 600,000
- Liabilities: CHF 400,000
- Filing status: Married, no children
| Net wealth | CHF 3,200,000 |
|---|---|
| Allowance | − CHF 160,000 |
| Taxable wealth | CHF 3,040,000 |
| Cantonal simple wealth tax | ≈ 0.10% → CHF 3,040 |
| Combined cantonal & municipal factor | × 2.20 |
| Total tax | ≈ CHF 6,690 |
| Effective rate | ≈ 0.21% |
Valuation consistency across years is key for AR taxpayers holding private company participations.
Case D — Nonresident Owning Property in Speicher (Low-Tax Commune)
- Tax nexus: Property ownership only
- Property value: CHF 1,000,000 (official wealth value)
- Mortgage: CHF 650,000 (linked to property)
- Commune: Speicher (approx. coefficient 1.59)
- Other Swiss assets: none
| Swiss-situs net wealth | CHF 350,000 |
|---|---|
| Cantonal simple wealth tax | ≈ 0.13% → CHF 455 |
| Combined coefficient | × 1.59 |
| Estimated tax | ≈ CHF 725 |
| Effective rate | ≈ 0.21% |
Tip: Debt allocation rules for nonresidents apply — only mortgage tied to Swiss property is deductible.
Case E — Comparison: Teufen vs. Herisau vs. Heiden
Single taxpayer, CHF 2,000,000 taxable net wealth
| Teufen (1.55) | Heiden (2.20) | Herisau (2.41) | |
|---|---|---|---|
| Cantonal simple wealth tax | ≈ CHF 2,400 | ≈ CHF 2,400 | ≈ CHF 2,400 |
| Total (incl. commune) | ≈ CHF 3,720 | ≈ CHF 5,280 | ≈ CHF 5,780 |
| Annual spread | ≈ CHF 2,060 difference at identical wealth | ||
Note: AR has one of the widest municipal differentials in Switzerland — location can nearly double the bill.
Key Takeaways
- Appenzell Ausserrhoden has very low cantonal base rates, often around 0.10–0.13%.
- Municipal coefficients drive most of the actual tax burden.
- Effective wealth tax commonly ranges from 0.17% to 0.28% for typical households.
- Entrepreneurs should manage valuation evidence for private participations carefully.
- Nonresidents must allocate mortgage deductions strictly to the Swiss property.