In Aargau, wealth tax is levied on net assets — that is, total gross wealth minus qualified allowances and deductible liabilities. Correctly capturing these elements can materially reduce your effective wealth tax burden.

The overview below reflects current practice under the Gesetz über die Staats- und Gemeindesteuern des Kantons Aargau (StG-AG), including the Steuergesetzrevision 2025, and the guidance of the Kantonales Steueramt Aargau.

Personal Allowances

Aargau grants basic wealth tax exemptions that vary by filing status. These allowances reduce taxable net wealth and are applied to the situation as at 31 December of the tax year.

Values reflect Aargau’s wealth tax regime after the 2025 tax law revision (implementation of higher wealth tax thresholds and adjusted tariffs). Amounts are periodically reviewed by the canton and may be updated in future years.

Debt Deductions

Wealth tax in Aargau is based on reinvermögen (net wealth). As of the balance date (31 December), taxpayers can deduct legally enforceable, documented liabilities, including:

• Mortgage balances on Swiss or foreign real estate
• Bank loans, investment credit lines, or margin loans
• Private loans backed by written agreements and interest evidence
• Outstanding cantonal, municipal and federal tax liabilities

Debts in foreign currencies must be translated using the official year-end exchange rates recognised by the tax authorities (typically those of the Federal Tax Administration).

Contingent or soft obligations (e.g. guarantees, sureties, letters of comfort) are generally not deductible until they become actual, enforceable debt.

Pension Assets & Retirement Accounts

As in other Swiss cantons, Aargau exempts certain retirement savings from wealth tax. The following are wealth tax exempt while funds remain in the plan:

• Assets in occupational pension schemes (2^nd pillar / BVG)
• Tied individual retirement accounts (pillar 3a)

Non-tied savings and investment products (pillar 3b) remain fully subject to wealth tax and must be declared at their taxable value.

Pension buy-ins (“Einkäufe in die zweite Säule”) and 3a contributions primarily reduce income tax. They affect wealth tax only indirectly by shifting assets from taxable private accounts into exempt pension vehicles.

Valuation Adjustments

Several asset classes are subject to special valuation rules under Aargau’s tax law, which can reduce taxable wealth compared to simple market value:

• Unlisted business interests: typically valued using practice methods aligned with Swiss tax conference guidance (mix of capitalised earnings and net asset value), which may result in valuation discounts compared to pure equity book values.
• Real estate: residential and commercial property in Aargau is usually valued using a combination of income value and market value rather than pure market price, especially following the recent overhaul of the property valuation system.
• Household effects: normal household goods and personal items (furniture, clothing, small appliances) are exempt; only significant artwork, jewellery or collectibles need to be reported at fair value.
• Securities and funds: listed securities are valued at their official year-end course values; collective investment schemes may have specific tax values published by the authorities.
• Cryptocurrencies and digital assets: generally valued at the official year-end prices published by the Federal Tax Administration.

Marital Property & Family Context

In Aargau, married couples living together are taxed jointly. Their combined assets and debts are aggregated, and the higher joint wealth tax allowance applies. Assets of dependent minor children are normally attributed to the parents’ return.

If spouses live separately and are taxed individually, each is treated as a separate taxpayer: only the individual allowance and the liabilities personally attributable to that spouse are taken into account.

Gifts, inheritances and other extraordinary inflows are added to taxable wealth as of 31 December of the tax year, unless they qualify for a specific exemption (for example, pay-outs from certain tax-exempt insurance contracts or pension schemes).

Documentation & Compliance

The Aargau tax administration expects consistent, verifiable documentation to support both the asset and liability side of the wealth tax return, including:

• Year-end bank and custody statements for cash and securities
• Mortgage and loan confirmations indicating balances as at 31 December
• Written agreements for private loans, including interest terms
• Pension plan statements for 2^nd pillar and 3a accounts
• Valuation reports for significant real estate, private companies or art collections, where relevant

Aligning values between the income and wealth sections of the tax return (for example, for securities portfolios, rental properties, or business interests) reduces the risk of follow-up questions or adjustments during assessment.

Planning Insights

• The 2025 reform in Aargau increased basic wealth tax allowances and flattened the tariff at higher wealth levels. For many households, optimising around the thresholds (CHF 130k / 260k) can materially impact the annual bill.
• Mortgages and other deductible loans can be used to lower taxable net wealth, but the resulting interest expenses affect your overall after-tax return — analyse both income and wealth tax effects before restructuring debt.
• Concentrated, non-productive assets (large cash balances, collectibles) above the allowances can inflate the taxable base; reallocating into diversified portfolios or tax-advantaged pension vehicles may improve both risk profile and tax outcome.
• Intra-family transfers (gifts, loans to children, or early inheritance planning) may shift ownership, but only properly documented arrangements are recognised for tax purposes and may have inheritance or gift tax implications. Coordination across all tax types is essential.