What is the tax cap in Switzerland?

The tax cap is a mechanism in place in certain cantons to prevent taxpayers from bearing an excessive tax burden over the long term due to their wealth.

In practical terms, the application of the tax shield caps the amount of wealth tax and, depending on the canton, income tax. The goal is to prevent individuals from having to sell assets or draw down their wealth over the long term in order to pay their taxes.

The conditions and calculation methods vary from canton to canton. It is therefore important to examine each situation on a case-by-case basis to determine whether the taxpayer is eligible for this provision.