The Canton of St. Gallen levies wealth tax on net assets held on 31 December — that is, worldwide gross wealth minus recognised allowances and deductible liabilities. Correctly applying these rules can materially affect your combined cantonal and municipal wealth tax burden.

This summary reflects practice under the Steuergesetz des Kantons St. Gallen (StG SG) and guidance from the Steueramt des Kantons St. Gallen. Municipal multipliers (Gemeindesteuerfüsse) then determine the effective rates at the place of residence.

Personal Allowances & Minimum Taxable Wealth

St. Gallen provides basic wealth tax allowances (minimum taxable wealth thresholds) that vary with marital and family status. Only net wealth above these thresholds is subject to cantonal wealth tax.

Amounts are indicative for 2025 and summarise typical St. Gallen practice. Exact minimum taxable wealth and social deductions are defined in the official cantonal rate tables and can change periodically. The relevant situation is determined as of 31 December.

Debt Deductions

St. Gallen allows deduction of legally enforceable debts outstanding on 31 December, provided they are clearly documented. Typical deductible liabilities include:

• Mortgages on Swiss or foreign real estate
• Bank loans, investment loans, and margin loans
• Private loans backed by written contracts and interest evidence
• Accrued but unpaid Swiss tax liabilities (federal, cantonal, municipal)

Debts in foreign currencies must be converted at the official year-end exchange rates published by the Federal Tax Administration (FTA).

Contingent or informal obligations (for example, guarantees) are generally not deductible until they crystallise into an actual enforceable debt.

Pension Assets & Retirement Accounts

St. Gallen follows the standard Swiss practice of fully exempting key pension assets from wealth tax:

• Occupational pension assets (2^nd pillar)
• Tied individual retirement accounts (pillar 3a)

These assets are not included in the taxable wealth base until benefits are paid out. Untied savings and investment products (pillar 3b) remain fully taxable.

Pension buy-ins and pillar 3a contributions mainly provide income tax relief; their wealth tax impact stems from the shift of balances between taxable and tax-exempt accounts.

Valuation Adjustments

The valuation rules St. Gallen applies to specific asset classes can significantly influence taxable wealth:

• Unlisted business interests: generally valued using Swiss practitioner methods (mix of earnings value and net asset value), which can result in a taxable value below a theoretical market price.
• Real estate: taxed at the official tax value (amtlicher Wert), typically lower than market value and thus providing natural relief.
• Movable property: ordinary household effects are exempt; significant artwork, jewellery, and collections are taxable at fair market value.
• Cryptocurrencies and precious metals: typically valued at the FTA’s official year-end prices or other verifiable market quotations.

Marital Property & Family Context

Married couples and registered partners living together are taxed jointly in St. Gallen. The assets of dependent children are attributed to the parents for wealth tax purposes.

Gifts and inheritances received during the year are included in year-end wealth unless they fall under a specific exemption (for example, certain pension or insurance benefits).

Documentation & Compliance

The St. Gallen tax administration expects coherent documentation for both assets and liabilities. Typical supporting evidence includes:

• Bank and securities account statements as of 31 December
• Mortgage and loan balance confirmations
• Private loan agreements and interest summaries
• Pension statements (2^nd pillar and pillar 3a)

Ensuring that income and wealth figures are consistent across the return helps avoid queries and adjustments during assessment.

Planning Insights

• St. Gallen’s effective wealth tax burden is driven by municipal multipliers; choice of municipality can materially change the overall tax level for larger portfolios.
• Maintaining appropriate mortgage leverage on real estate may reduce taxable net wealth, but interest costs and risk should be carefully assessed.
• Reviewing official real estate values and business valuations can uncover straightforward relief without complex structures.
• Coordinating wealth tax planning with inheritance, gift, and income tax strategies is especially relevant for St. Gallen–resident entrepreneurs and investors.