Liechtenstein Tax Rate: Personal Income Tax and the Municipal Surcharge
The Liechtenstein tax rate for a private person starts with a state scale from 0% to 8% (Tax Act, Art. 19(1)(a)). Each municipality adds a surcharge of 150% to 250% of the state tax (Art. 75(3)). Wealth is taxed on the same scale as a deemed yield of 4% counted as income (Art. 5(1)). Figures are the 2026 text.
Short answer
This guide is for people who live in Liechtenstein, plan to move, or work across the border. It takes one rule at a time and puts the article of the Tax Act beside every figure. The law states what applies; it does not say which option fits you. If a personal position needs more than the rules, read how a tax ruling is obtained from the Liechtenstein tax administration: a licensed Liechtenstein trustee gives the tax advice, and Vaduz Corporate Solutions (VCS) prepares the file. Company tax is a different subject and sits outside this page.
Who pays Liechtenstein income tax, and on what?
Liechtenstein taxes a natural person by residence. Under the Tax Act (Steuergesetz, SteG, LGBl. 2010 Nr. 340, 2026 text), anyone with residence or habitual abode (gewöhnlicher Aufenthalt) in Liechtenstein is liable without limit, on all wealth and all income (Art. 6(1)). Anyone with neither is liable only on Liechtenstein wealth and Liechtenstein income (Art. 6(2)). The Liechtenstein tax rate for foreigners does not depend on nationality, only on residence. A person without residence or habitual abode is taxed on Liechtenstein income only: employment income by withholding at source (Art. 23(1)(b), 24, 25), some business and property income at a simplified 4% plus the municipal surcharge (Art. 23(1)(a)), and on the Art. 19 scale only in ordinary assessment (Art. 23(5)).
Unlimited liability. Residence or habitual abode in Liechtenstein: all wealth and all income are taxable.
Limited liability. Neither residence nor habitual abode: only Liechtenstein wealth and Liechtenstein income are taxable.
A continuous stay of more than six months counts as habitual abode from the start (Art. 2(1)(c)). Cure and holiday stays of up to twelve months create neither habitual abode nor residence. Some websites quote a 183-day test. The Act uses the test above. Employment income is taxable, side benefits included (Art. 14(2)(d)). The rule matters because the two groups read the same Act and reach different results. A resident declares everything, wherever it arises. A non-resident is taxed on what arises in Liechtenstein. Wages from a Liechtenstein employer are taxed by withholding at source, which settles the tax unless ordinary assessment applies (Art. 23(1)(b), 23(2)), as covered further down. If you are still deciding whether to move, the guide on relocating to Liechtenstein from abroad covers the practical side.
What is the Liechtenstein income tax rate on the state scale in 2026?
Art. 19(1)(a) of the Tax Act sets the state tax in nine bands. Each band prints a formula: the rate times taxable income, minus a constant. The table gives the standard column. Income up to CHF 15,855 (Grundfreibetrag, basic allowance) bears no state tax.
State income tax scale, standard column, 2026 text of the Tax Act, CHF
| taxable income band | state tax | article |
|---|---|---|
| up to 15,855 | 0 | Art. 19(1)(a) |
| 15,856 to 21,140 | 1% of income less 159 | Art. 19(1)(a) |
| 21,141 to 42,280 | 3% of income less 581 | Art. 19(1)(a) |
| 42,281 to 73,990 | 4% of income less 1,004 | Art. 19(1)(a) |
| 73,991 to 105,700 | 5% of income less 1,744 | Art. 19(1)(a) |
| 105,701 to 137,410 | 6% of income less 2,801 | Art. 19(1)(a) |
| 137,411 to 169,120 | 6.5% of income less 3,488 | Art. 19(1)(a) |
| 169,121 to 211,400 | 7% of income less 4,334 | Art. 19(1)(a) |
| 211,401 and above | 8% of income less 6,448 | Art. 19(1)(a) |
Source: Tax Act (SteG), Art. 19(1)(a), 2026 text.
State income tax scale, 2026 text
Two other columns exist. A single parent has a basic allowance of CHF 23,783 (Art. 19(1)(b)), and spouses assessed jointly have a joint basic allowance of CHF 31,710 (Art. 19(1)(c)). This page prints the standard column only. Before the scale applies, the tax office rounds amounts down: income to the next CHF 10 and wealth to the next CHF 100 (Art. 18(1)).
The Act adjusts the scale, the franc limits and the deductions when consumer prices have risen 3% or more since the last adjustment (kalte Progression, Art. 20(1)). The trigger is a price rise, so the scale does not change every year. Read the table as the 2026 text and check the amounts again after the next adjustment.
To read a band, take your taxable income as x. In the band from CHF 73,991 to CHF 105,700 the state tax is 0.05 times x, minus CHF 1,744. The constant in each row is part of the formula, so the whole income is run through the formula of its band, and the result is the state tax. The Act prints the formulas, and the Tax Administration applies them to the amount after deductions and after rounding.
How high is the municipal surcharge?
The state tax is the first layer. On top of the state wealth and income tax of residents, the Act levies a municipal surcharge, the Gemeindezuschlag (Art. 75(1)). Each municipal council sets it every year as a percentage of the state tax. It may not fall below 150% or rise above 250% (Art. 75(3)). No surcharge is levied on tax withheld at source (Art. 75(2)).
- The surcharge is a percentage of the state tax, added to it.
- The council sets it every year; the Act fixes the floor at 150% and the ceiling at 250%.
- Tax withheld at source carries no surcharge.
- The lowest surcharge has been 150% for years; the Government expects 150% for tax year 2027.
The last point comes from the Government report BuA 2026/108 of the Office for Finance (Amt für Finanzen), which says the lowest surcharge fixed by any municipality has been at 150% for years. Its source is the Government report BuA 2026/108. This page names no municipality and prints no municipal rate. The council of the municipality where a person lives sets the rate, and the municipal tax office collects it with the state tax.
The surcharge also explains why two people with the same income can receive different bills. The state scale is the same for both. The multiplier comes from the municipality, and the Act leaves it to the council within the limits above. Anyone comparing figures from different websites should check whether a figure is the state tax alone or the state tax with a surcharge, and which year it refers to.
What does the Liechtenstein tax rate come to in francs?
The headline 0% to 8% is the state tax only. The surcharge then multiplies it. The table shows the arithmetic with the two ends of the legal range. The surcharge is a percentage of the state tax added to it, so the total is the state tax times 2.5 at a 150% surcharge and times 3.5 at 250%. The same arithmetic at the top marginal state rate of 8% gives 20% at a 150% surcharge and 28% at 250%. These percentages are derived arithmetic from the Act, not a statute line and not a figure published by the Tax Administration.
Worked examples, derived from the 2026 scale and the legal surcharge range, CHF
| case | state tax | total with 150% surcharge (derived) | total with 250% surcharge (derived) | basis |
|---|---|---|---|---|
| taxable income CHF 100,000 | 0.05 x 100,000 - 1,744 = 3,256 | 3,256 x 2.5 = 8,140 | 3,256 x 3.5 = 11,396 | Art. 19(1)(a), 75(3) |
| taxable income CHF 300,000 | 0.08 x 300,000 - 6,448 = 17,552 | 17,552 x 2.5 = 43,880 | 17,552 x 3.5 = 61,432 | Art. 19(1)(a), 75(3) |
Source: Tax Act (SteG), Art. 19(1)(a) and 75(3).
The assumptions are a single person, a taxable amount after deductions, the standard column, and a municipality whose surcharge is not known. This is an illustration, not advice. Many people search for a Liechtenstein tax calculator. This page offers the formula and these examples, and it does not compute a personal result. The two rows show how the formula works at two incomes. In the first, the 5% band applies and the constant is CHF 1,744. In the second, the 8% band applies and the constant is CHF 6,448. In both rows the surcharge is the only unknown, which is why the table shows the two ends of the legal range and no single total.
Is there a wealth tax in Liechtenstein?
There is no separate wealth-tax rate. Wealth is converted into income and taxed on the income scale. Take taxable wealth of CHF 1,000,000 and no other income. The Act fixes the standardised yield on wealth, the Sollertrag, at 4% (Art. 5(1)), so the deemed income is CHF 40,000. The state tax falls in the 3% band: 0.03 x 40,000 - 581 = CHF 619. At the legal surcharge range of 150% to 250% the derived totals are 619 x 2.5 = CHF 1,547.50 and 619 x 3.5 = CHF 2,166.50. This is an illustration from the statute, not advice.
From wealth to state tax
Wealth CHF 1,000,000
x 4% deemed yield
CHF 40,000 counted as income
3% band less 581
State tax CHF 619
Plus municipal surcharge 150% to 250%
- The Act converts taxable wealth into a deemed yield of 4% (Art. 5(1)).
- The Sollertrag of taxable wealth counts as income of a resident (Art. 14(2)(l)).
- The state tax is computed on income including that converted wealth (Art. 19(1)).
Returns of wealth on which the taxpayer already pays wealth tax are not taxed a second time as income (Art. 15(1)(a)). The Act has more rules on taxable wealth, including allowances, and a separate guide takes them in depth. This page stays with the rate.
The example shows why the question "how high is the wealth tax rate" has no single answer. The wealth enters the income scale as CHF 40,000 of deemed income, and it is taxed in the band that this amount reaches. Someone with taxable wealth and a salary has both added together, so the wealth can lift the total into a higher band. The Act fixes the yield at 4% in its own text, and this page asserts no reform year for it.
Check the rules with a licensed trustee
What should you check before you file in a new country? The rules above are information. A licensed Liechtenstein trustee gives the tax advice.
What income does a private person not pay income tax on?
The Act lists items that fall outside income tax for a private person. They are exemptions for private investors. They say nothing about company tax, and they do not mean that a resident pays nothing.
Items outside income tax for a private person, 2026 text of the Tax Act
| item | what the Act says | article |
|---|---|---|
| Private capital gains | gains on selling private movable assets and private immovable assets are exempt from income tax; gains on domestic land bear the separate real-estate gains tax | Art. 15(2)(m); Art. 35(1) |
| Dividends | profit shares from participations in legal entities are exempt for private investors | Art. 15(2)(n) |
| Participation gains | gains on sale or liquidation of participations, and unrealised value gains, are exempt | Art. 15(2)(o) |
| Inheritances and gifts | one-off acquisitions by inheritance, legacy or gift are exempt | Art. 15(2)(c) |
| Subsistence minimum | income of a resident that does not exceed the Existenzminimum is exempt; CHF 2,100 gross a month for a single person | Art. 15(2)(i); SteV Art. 8 |
Source: Tax Act (SteG), Art. 15(2); Tax Ordinance (SteV), Art. 8.
Real-estate gains and special regimes sit outside this page. The tax a company pays on its profit follows its own rules, and the guide on corporate tax covers them.
Which deductions does the Tax Act allow?
Art. 16 of the Tax Act lists the deductions. The list below gives examples from the 2026 text. The Act has more deductions than these examples. The franc limits move with prices (Art. 20(1)).
- Employee lump sum from employment income: CHF 1,600, extraordinary costs reserved (Art. 16(2)(c)).
- Each minor child in the taxpayer's care: CHF 12,700 (Art. 16(3)(a)).
- Life, health and accident insurance premiums: up to CHF 3,700 per taxpayer, and CHF 7,400 for spouses assessed jointly (Art. 16(3)(d)).
- Contributions to recognised pension funds: up to 18% of qualifying income (Art. 16(3)(e)).
- Unreimbursed illness, accident and dental costs: up to CHF 6,300 per person (Art. 16(3)(g)).
Deductions reduce the taxable amount before the scale applies. Which of them a person can claim depends on the facts of that person's year, and that question belongs to the licensed trustee.
How are employees and cross-border commuters taxed?
Most employees are taxed at source. The Tax Administration fixes the withholding from the expected annual income, the lump-sum deductions and the family status (Art. 25(2)). The employer is liable for paying the withheld amounts (Art. 27(2)). The Act credits withheld tax against the state and municipal tax owed and refunds any excess (Art. 29(3)). No surcharge is levied on tax withheld at source (Art. 75(2)).
A person who works in Liechtenstein without living there (a Grenzgänger, cross-border commuter) is a limited taxpayer. For employment income, the withholding settles the tax (Art. 23(1)(b)). Ordinary assessment follows in three cases:
When ordinary assessment replaces withholding for a commuter, 2026 text
| trigger | condition |
|---|---|
| High income | gross employment income of CHF 211,400 or more (Art. 23(2)) |
| Treaty | a tax treaty gives Liechtenstein the exclusive right to tax the income, whatever the amount (Art. 23(2)(b)) |
| Request | on application, for gross income up to CHF 211,400 (Art. 23(2)(c)) |
Source: Tax Act (SteG), Art. 23.
Where a treaty limits Liechtenstein's tax and too much was withheld, the Tax Administration refunds the proven excess on application. The application must be made within two years of the due date of the withheld amounts (Art. 26(3)). This page gives no withholding-rate tables and no rules of other countries. The Tax Administration fixes the withholding itself, so an employee does not compute the rate. The employee checks the statement against the facts the Tax Administration used: expected annual income, the lump-sum deductions and the family status. A commuter who lives in another country should also read that country's rules, which this page does not cover.
What is lump-sum taxation by expenditure?
Lump-sum taxation, the Steuer nach dem Aufwand, is a narrow regime. It is 25% of the expenditure defined in Art. 32 of the Tax Act (Art. 33). The Tax Administration levies it on application, in place of wealth and income tax (Art. 30(1)). The Act allows it, on application, for people who take up residence or habitual abode in Liechtenstein for the first time, or after at least ten years abroad (Art. 30(1)). They must not hold Liechtenstein citizenship, must exercise no gainful activity in Liechtenstein, and must live off the yield of their assets or off income from abroad (Art. 30(1)). Domestic real property stays subject to wealth tax (Art. 30(3)). The Tax Administration examines the application and decides (Art. 31).
The basis is the taxpayer's total expenditure (Art. 32). This page does not compute it. It promises no eligibility. Whether the regime applies to a person is a question for the licensed trustee and for the Tax Administration, which decides. Where the Tax Administration accepts the application, the tax by expenditure replaces the ordinary tax on wealth and income for that person (Art. 30(1), 31). The page frames the regime as a boundary case of the Act, next to the ordinary scale above, and does not recommend it to anyone.
When is the tax return due, and can the deadline be extended?
The Tax Administration sets the deadline for the return every year (Art. 95(1)). The page prints no calendar date for that reason. The Act adds two rules a private person should know.
- A person who leaves the country files the return before departure (Art. 95(2)).
- On a reasoned written request, the municipal tax office may extend a private person's deadline by at most five months. The request must be made before the ordinary deadline expires (SteV Art. 40(1)).
- An extension of more than one month requires prepayment of 80% of the previous year's tax (SteV Art. 40(2)).
The rules for private persons are in the Tax Ordinance, Art. 40. A longer extension rule in the same ordinance applies to company tax and is not described here. In practice, three things decide whether a private person meets the deadline: the income documents, the proofs for the deductions listed above, and the written request for an extension if one is needed. A request after the ordinary deadline has expired does not meet the condition in Art. 40(1).
Who prepares the return and gives tax advice?
Tax advice for third parties is a trustee activity under Art. 2(d) of the Trustee Act (TrHG). Legal advice is reserved to lawyers under Art. 8 of the Lawyers Act (RAG). The licensed Liechtenstein trustee named in your engagement letter gives the tax advice and files the return in German under a written power of attorney. VCS prepares and coordinates the file. This page names no partner and no licence number.
From our practice. We collect the income documents and the deduction proofs and note the municipality of residence. We hand the file to the licensed trustee, who prepares the return and files it. For the bookkeeping behind a return, see the accounting page.
Sources
- Tax Act (SteG), LGBl. 2010 Nr. 340, 2026 text: scale, surcharge, Sollertrag, exemptions, deductions, withholding, lump-sum taxation, filing.
- Tax Ordinance (SteV), LGBl. 2010 Nr. 437: subsistence minimum (Art. 8), extension for a private person (Art. 40).
- Government report BuA 2026/108: municipal surcharge.
- Trustee Act (TrHG), LGBl. 2013 Nr. 421: tax advice (Art. 2(d)).
- Lawyers Act (RAG), LGBl. 2013 Nr. 415: legal advice (Art. 8).
Frequently asked questions about the Liechtenstein tax rate
What is the income tax rate in Liechtenstein?
The state scale for a private person runs from 0% to 8% (Tax Act, Art. 19(1)(a)). Income up to CHF 15,855 bears no state tax in the standard column. The state tax is the first layer: the municipality then adds a surcharge of 150% to 250% of that tax (Art. 75(3)).
What is the top income tax rate once the municipal surcharge is added?
The top state band is 8% of income less CHF 6,448, from CHF 211,401 (Art. 19(1)(a)). With a surcharge of 150% to 250% the derived marginal totals are 8% x 2.5 = 20% and 8% x 3.5 = 28%. This is derived arithmetic from the Act, not a figure published by the Tax Administration.
How high is the municipal surcharge and does it differ by municipality?
Each municipal council sets it every year as a percentage of the state tax, between 150% and 250% (Art. 75(3)). The rate can therefore differ by municipality. The lowest surcharge has been 150% for years, and the Government expects 150% for tax year 2027 (report BuA 2026/108).
How much income is taxed at 0% in Liechtenstein?
In the standard column the basic allowance is CHF 15,855 (Art. 19(1)(a)). The single-parent column starts at CHF 23,783 (Art. 19(1)(b)), and spouses assessed jointly have CHF 31,710 (Art. 19(1)(c)). Separately, income that does not exceed the subsistence minimum is exempt: CHF 2,100 gross a month for a single person.
Is there a wealth tax in Liechtenstein?
There is no separate wealth-tax rate. The Act converts taxable wealth into income at a 4% deemed yield and taxes it on the income scale (Art. 5(1), 14(2)(l), 19(1)). Returns on wealth that already bears wealth tax are not taxed again as income (Art. 15(1)(a)).
What is the Sollertrag and how is it taxed?
The Sollertrag is the standardised yield on taxable wealth, fixed in the Act at 4% (Art. 5(1)). It counts as income of a resident (Art. 14(2)(l)) and the state tax is computed on income including it (Art. 19(1)). On CHF 1,000,000 the deemed income is CHF 40,000 and the state tax 0.03 x 40,000 - 581 = CHF 619.
Are dividends and capital gains taxed for private persons?
Profit shares from participations in legal entities are exempt for private investors (Art. 15(2)(n)). Gains on selling private movable and immovable assets (Art. 15(2)(m)) and on participations (Art. 15(2)(o)) are exempt from income tax too, but gains on domestic land bear the separate real-estate gains tax (Art. 35(1)). This covers private persons only, not company tax.
Which deductions can a Liechtenstein resident claim?
Examples in the 2026 text: an employee lump sum of CHF 1,600 (Art. 16(2)(c)), CHF 12,700 for each minor child (Art. 16(3)(a)), insurance premiums up to CHF 3,700 (Art. 16(3)(d)), pension contributions up to 18% (Art. 16(3)(e)) and medical costs up to CHF 6,300 (Art. 16(3)(g)). The Act has more.
How are cross-border commuters (Grenzgänger) taxed?
A commuter is a limited taxpayer. The Tax Administration fixes the withholding (Art. 25(2)), and for employment income the withholding settles the tax (Art. 23(1)(b)). The employer is liable for paying it (Art. 27(2)). No municipal surcharge is levied on tax withheld at source (Art. 75(2)).
When does a commuter have to file a return?
Ordinary assessment replaces withholding in three cases: gross employment income of CHF 211,400 or more (Art. 23(2)), a treaty that gives Liechtenstein the exclusive right to tax the income (Art. 23(2)(b)), or an application by the commuter for gross income up to CHF 211,400 (Art. 23(2)(c)).
What is lump-sum taxation by expenditure and who can apply?
It is 25% of the expenditure in Art. 32, levied on application in place of wealth and income tax (Art. 33, 30(1)). It is open to people who move in for the first time or after ten years abroad, are not citizens, do no gainful work there and live off assets or foreign income. The Tax Administration decides (Art. 31).
When is the tax return due and can the deadline be extended?
The Tax Administration sets the deadline every year (Art. 95(1)), and a person who leaves files before departure (Art. 95(2)). On a reasoned written request, the municipal tax office may extend a private person's deadline by at most five months. More than one month requires prepaying 80% of the previous year's tax (SteV Art. 40).
Do I pay tax in Liechtenstein if I live there only part of the year?
Residence or habitual abode brings unlimited liability (Art. 6(1)). A continuous stay of more than six months counts as habitual abode (Art. 2(1)(c)), while cure and holiday stays of up to twelve months do not. Without either, liability is limited to Liechtenstein wealth and income (Art. 6(2)).
Does the Liechtenstein tax scale change from year to year?
Not every year. The Act adjusts the scale and the franc limits when consumer prices have risen 3% or more since the last adjustment (Art. 20(1)). The tables here are the 2026 text. The page offers the formula and worked examples, not a personal calculator.