Obwalden Wealth Tax Rates
Obwalden Wealth Tax: Rates & Municipal Multipliers
Obwalden combines a very low, flat cantonal wealth tax rate with moderate communal Steuerfüsse — resulting in one of Switzerland’s lowest effective wealth tax burdens, around 0.14% of taxable wealth in Sarnen.
In the canton of Obwalden, wealth tax is levied on your taxable net wealth at 31 December. Taxable net wealth corresponds to your worldwide assets (for residents), minus deductible debts and personal allowances. The canton applies a linear simple wealth tax of 0.2‰ (0.02%) on taxable net wealth. The resulting simple tax is then multiplied by the cantonal and municipal Steuerfuss (tax rate in units).
External comparisons and official materials place the combined cantonal and communal wealth tax in the capital Sarnen at roughly 0.14% of taxable wealth at CHF 1 million and CHF 5 million, excluding church tax. This puts Obwalden at the very low end of the Swiss wealth tax spectrum, together with Zug, Nidwalden and Schwyz.
Cantonal Simple Wealth Tax (Flat 0.2‰)
Obwalden’s wealth tax is flat rather than progressive. Once taxable net wealth exceeds the allowance, the same simple rate applies to all wealth bands:
- Simple wealth tax: 0.2‰ (0.02%) of taxable net wealth per tax year
- Linear tariff: the rate does not increase with higher wealth levels
In practice, this means that any progression in the overall burden is driven by (i) the interaction with income tax and (ii) the number of tax units (Steuerfüsse) in your municipality, not by a progressive wealth tax schedule.
The table below shows the simple cantonal wealth tax (before applying Steuerfüsse) at selected levels of taxable net wealth. For simplicity, it assumes that all allowances have already been taken into account.
| Taxable Net Wealth (CHF) | Simple Cantonal Wealth Tax @ 0.2‰ (CHF) | Approx. Average Cantonal % |
|---|---|---|
| Up to allowance threshold | 0 | 0% |
| 100,000 | ≈ 20 | 0.2‰ (0.02%) |
| 500,000 | ≈ 100 | 0.2‰ (0.02%) |
| 1,000,000 | ≈ 200 | 0.2‰ (0.02%) |
| 3,000,000 | ≈ 600 | 0.2‰ (0.02%) |
These figures show only the simple cantonal wealth tax. The actual bill depends on the total Steuerfuss (cantonal + municipal + church, if applicable) in your municipality and on your personal allowances.
Municipal Steuerfüsse in Obwalden
Obwalden follows the typical Swiss simple tax × Steuerfuss model. For wealth tax on natural persons, the total ordinary tax is calculated as:
Total wealth tax = Simple wealth tax × (Cantonal Steuerfuss + Municipal Steuerfuss + Church Steuerfuss, if applicable).
The simple wealth tax is the 0.2‰ rate described above. The Steuerfuss is expressed as a number of units; for example, a total of 7.0 units implies that the final wealth tax is 7.0 × simple wealth tax. In Sarnen, recent commentary has referred to a total Steuerfuss (including church) of around 7.6 units, which — when applied to the 0.2‰ simple tax — yields a total wealth tax of roughly 1.5‰ (0.15%) of taxable wealth. Excluding church, the combined cantonal and communal Elemente are typically a bit lower, consistent with effective rates around 0.14%.
The exact Steuerfüsse are decided annually by the canton and the municipal assemblies. The ranges below illustrate the order of magnitude for selected communes, focusing on cantonal + municipal Steuerfüsse and ignoring church.
| Municipality (examples) | Indicative Total Steuerfuss* (Cantonal + Municipal) | Comment |
|---|---|---|
| Sarnen (capital) | ≈ 7.0–7.2 | Capital benchmark; combined wealth tax around 0.14% of taxable wealth at CHF 1–5 million (excluding church). |
| Kerns | ≈ 6.5–7.0 | Large municipality south of Sarnen; slightly lower or similar total Steuerfuss compared with the capital. |
| Sachseln | ≈ 6.5–7.0 | Lakeside commune; often in the same general band as Kerns in budget documents. |
| Giswil / Lungern | ≈ 7.5–8.5 | Mountain & lake area; budget reports mention higher Steuerfüsse in these communes, leading to a modestly higher local share. |
| Alpnach / Ennetmoos | ≈ 6.5–7.5 | Agglomeration communes with mid-range Steuerfüsse relative to the rest of the canton. |
| Lowest-tax communes (selected years) | ≈ 6.2–6.5 | Depending on annual budget decisions, some smaller communes have occasionally adopted slightly lower Steuerfüsse. |
*Ranges are indicative for planning and reflect cantonal + municipal Steuerfüsse for natural persons, excluding church. Always confirm the exact Steuerfuss for the tax year in the official Obwalden tax publications or calculator.
Combined Effective Burden — Examples
For Obwalden residents (excluding church tax), the combined cantonal and communal wealth tax can be approximated as:
Total wealth tax ≈ Taxable net wealth × 0.2‰ × Total Steuerfuss.
The examples below use the flat 0.2‰ simple rate and compare a lower-tax setting (Total Steuerfuss ≈ 6.5, more typical of relatively low communes) with a higher-tax setting (≈ 7.5, closer to the upper end of the Obwalden range). The resulting effective rates line up with external comparisons that place Sarnen at about 0.14% of taxable wealth in the CHF 1–5 million band, excluding church.
| Taxable Net Wealth (CHF) | Commune @ Steuerfuss 6.5 | Commune @ Steuerfuss 7.5 | Approx. Effective % Range |
|---|---|---|---|
| 500,000 | Simple: 500,000 × 0.2‰ = 100 → 100 × 6.5 = CHF 650 | Simple: 500,000 × 0.2‰ = 100 → 100 × 7.5 = CHF 750 | ~0.13%–0.15% |
| 1,000,000 | Simple: 1,000,000 × 0.2‰ = 200 → 200 × 6.5 = CHF 1,300 | Simple: 1,000,000 × 0.2‰ = 200 → 200 × 7.5 = CHF 1,500 | ~0.13%–0.15% |
| 3,000,000 | Simple: 3,000,000 × 0.2‰ = 600 → 600 × 6.5 = CHF 3,900 | Simple: 3,000,000 × 0.2‰ = 600 → 600 × 7.5 = CHF 4,500 | ~0.13%–0.15% |
These numbers assume standard allowances already reflected in taxable wealth and exclude church tax. They are consistent with comparative tables that show Obwalden (Sarnen) at around 0.14% of taxable wealth at both CHF 1 million and CHF 5 million.
Notes & Caveats
- Allowances & family situation: Obwalden grants personal allowances and family-related deductions that reduce taxable wealth before the 0.2‰ rate is applied. Below the combined allowance, no cantonal or communal wealth tax is due. See Allowances & Deductions.
- Debt reduces the base: Mortgages, investment loans and other enforceable debts outstanding on 31 December are deductible from gross assets when computing taxable net wealth. If you hold assets in several cantons or abroad, wealth is allocated using Steuerausscheidung. See Allowances.
- Valuation rules: Bankable assets are typically taken at year-end market value; real estate valuations follow cantonal rules; and private company interests are valued using accepted methods. See Valuation Rules.
- Church tax: Church taxes are calculated via additional Steuerfüsse and apply only to members of recognised religious communities. They can raise the effective rate slightly above the ranges shown in the examples.
- Year-specific figures: While the simple 0.2‰ rate has been stable, the cantonal and municipal Steuerfüsse, as well as allowances, are periodically reviewed in the context of Obwalden’s flat-tax strategy and budget process. Always check the current-year figures for your commune when modelling scenarios.