Ticino Wealth Tax Cases

Ticino Wealth Tax: Cases & Worked Examples

Illustrative computations showing how Ticino’s progressive 1–3‰ wealth tax and 2.5‰ top rate, combined with municipal multipliers, work in practice for typical resident and nonresident profiles.

The canton of Ticino levies a progressive wealth tax on taxable net wealth. The cantonal base tariff applies in brackets from 1‰ to 3‰ up to CHF 1,380,000 of taxable net wealth and then a flat 2.5‰ (0.25%) above that level. This base tax is multiplied by the cantonal coefficient and by each commune’s municipal multiplier.

There is a general minimum exemption so that net wealth below CHF 200,000 is not subject to wealth tax. On top of this, social deductions (rounded) are: CHF 60,000 for married couples living together and CHF 30,000 for each minor child. Debts are always deductible.

Combined cantonal and municipal factors in central communes such as Lugano, Bellinzona or Locarno typically result in effective wealth tax rates around 0.20–0.35% of taxable net wealth at planning levels. The examples below use indicative 2025-style values and rounded multipliers for illustration only.

All numbers rounded; church tax ignored. Brackets, multipliers and social deductions simplified for planning purposes – always verify with the official Ticino calculator and current communal tax rates.

Case A — Single Professional in Lugano

Commune: Lugano (attractive income tax, moderate wealth tax; municipal multiplier ≈ 77%)
Assets: CHF 1,000,000 (cash & listed portfolios)
Liabilities: none
Minimum exemption: CHF 200,000
Additional social deduction for singles: none (uses minimum exemption only)

Net wealth	CHF 1,000,000
Less minimum exemption	− CHF 200,000
Taxable net wealth	CHF 800,000
Cantonal base wealth tax	Progressive 1–3‰ within first CHF 1.38m → average ≈ 2.0‰ on CHF 800,000 → ≈ CHF 1,600
Indicative combined factor (canton + Lugano)	≈ ×1.40
Wealth tax due	≈ CHF 2,250
Effective rate	≈ 0.23% of net wealth

Observation: Even at CHF 1m, Lugano’s effective wealth tax remains moderate. The progressive brackets are already mostly used, so additional wealth scales fairly linearly.

Case B — Married Couple with Two Children in Bellinzona

Commune: Bellinzona (cantonal capital; slightly higher multiplier than Lugano)
Assets: CHF 2,700,000 (primary residence + securities portfolio)
Liabilities: CHF 900,000 mortgage
Minimum exemption: CHF 200,000
Social deductions: CHF 60,000 (married) + 2 × CHF 30,000 (children) = CHF 120,000

Net wealth	CHF 1,800,000
Less minimum exemption	− CHF 200,000
Less social deductions	− CHF 120,000
Taxable wealth	CHF 1,480,000
Cantonal base wealth tax	First CHF 1,380,000 at progressive 1–3‰, remaining CHF 100,000 at 2.5‰ → simple tax ≈ CHF 3,200
Indicative Bellinzona factor (canton + commune)	≈ ×1.40
Estimated wealth tax	≈ CHF 4,500
Effective rate	≈ 0.25% of net wealth

Planning angle: In Ticino, the combination of a minimum exemption, social deductions and a progressive schedule means that mortgages are very effective: every franc of debt reduces the taxable base that runs through the 1–3‰ schedule and, above CHF 1.38m, the 2.5‰ top rate.

Case C — Entrepreneur with Private Company Shares in Locarno

Commune: Locarno (lake region; moderate municipal multiplier)
Unlisted shares: CHF 3,500,000 (valued under practitioner method)
Other assets: CHF 700,000 (cash & listed portfolios)
Liabilities: CHF 1,600,000 (business and private loans)
Filing status: Married, no children
Minimum exemption: CHF 200,000
Social deductions: CHF 60,000 (married couple)

Gross assets	CHF 4,200,000
Less liabilities	− CHF 1,600,000
Net wealth	CHF 2,600,000
Less minimum exemption	− CHF 200,000
Less social deductions	− CHF 60,000
Taxable wealth	CHF 2,340,000
Cantonal base wealth tax	CHF 1,380,000 at progressive 1–3‰ (simple ≈ CHF 3,450) + CHF 960,000 at 2.5‰ (≈ CHF 2,400) → total simple ≈ CHF 5,850
Locarno factor (canton + commune; indicative)	≈ ×1.40
Total wealth tax	≈ CHF 8,200
Effective rate	≈ 0.32% of net wealth

In practice, private company participations may be valued cautiously under the official practice. This can materially influence the taxable base and, therefore, wealth tax.

Planning angle: For entrepreneurs, Ticino’s structure produces a fairly stable marginal burden once the 2.5‰ band is reached. The main levers are valuation of private shares, debt levels and commune choice.

Case D — Nonresident Owning a Holiday Apartment in Ascona

Tax nexus: Nonresident with Ticino property only
Property value: CHF 1,300,000 (wealth tax value based on official valuation)
Mortgage: CHF 850,000 (loan economically linked to the apartment)
Commune: Ascona (premium tourist commune; somewhat higher multiplier)
Other Swiss assets: none
Minimum exemption: applied to Ticino-situs net wealth
Social deductions: not fully modelled for nonresidents; simplified allocation

Swiss-situs net wealth (Ticino)	CHF 450,000
Less minimum exemption (allocated)	− CHF 200,000
Taxable Ticino wealth	CHF 250,000
Cantonal base wealth tax	Within progressive 1–3‰ bands → simple ≈ 2.0‰ of CHF 250,000 → ≈ CHF 500
Ascona factor (indicative; canton + commune)	≈ ×1.45
Estimated wealth tax	≈ CHF 725
Effective rate on Swiss-situs wealth	≈ 0.16%

Tip: For nonresidents, Ticino taxes only Ticino-situs assets (typically real estate). Only the portion of debt that is economically connected to the Ticino property is deductible; global portfolios and other debts stay primarily relevant in the country of residence.

Case E — Comparison: Lugano vs. Bellinzona vs. High-Tax Commune

Married taxpayer with CHF 2,000,000 taxable net wealth (after all allowances and exemptions)

	Lugano	Bellinzona	High-tax example (e.g. small hill commune)
Cantonal base wealth tax on CHF 2,000,000	≈ CHF 4,450 (≈ CHF 3,450 on first CHF 1,380,000 + CHF 2,500‰ on remaining CHF 620,000)
Indicative total factor	≈ ×1.35	≈ ×1.40	≈ ×1.55
Total wealth tax	≈ CHF 6,000	≈ CHF 6,230	≈ CHF 6,900
Effective rate (on taxable wealth)	≈ 0.30%	≈ 0.31%	≈ 0.35%
Annual difference	Spread of roughly CHF 900 per year between a higher-tax commune and Lugano at identical taxable wealth

Note: Ticino’s base tariff is cantonal and common to all communes; effective burdens differ mainly through the municipal multiplier and the interaction with income tax via the “Wealth tax cap” (limiting combined income and wealth taxes relative to income).

Key Takeaways

Ticino applies a progressive wealth tax from 1‰ to 3‰ up to CHF 1.38m, with a flat 2.5‰ above that.
A general minimum exemption of CHF 200,000 plus social deductions (CHF 60,000 for couples and CHF 30,000 per child) shields modest wealth.
Combined canton + commune multipliers typically yield effective rates around 0.20–0.35% of net wealth for standard profiles.
Mortgages and other deductible liabilities reduce taxable net wealth directly and therefore apply through both the progressive schedule and the 2.5‰ top rate.
Entrepreneurs must pay close attention to the valuation of private company participations; once in the 2.5‰ band, additional net wealth has a predictable marginal cost.
Nonresidents are taxed only on Ticino-situs wealth; debt allocation and the minimum exemption play an important role in shaping the Swiss tax base.
A statutory wealth tax cap links combined income and wealth taxes to a percentage of taxable income, providing an additional safeguard at high wealth levels.