Which Swiss cantons exempt children from inheritance tax?

Switzerland has no federal inheritance tax. All 26 cantons set their own rules, and the vast majority exempt direct descendants (children and grandchildren) as well as surviving spouses. In practice, a parent leaving assets to children pays no cantonal inheritance tax in most Swiss cantons. This includes populous cantons such as Zurich, Bern, Vaud, and Aargau.

A handful of cantons go further and have abolished inheritance and gift tax entirely for all beneficiaries, regardless of relationship. Schwyz and Obwalden are the most notable examples. Several other cantons (including Lucerne and Solothurn) exempt spouses and direct descendants but still tax transfers to siblings, cousins, or unrelated persons.

The rates applied to non-exempt beneficiaries escalate sharply with distance of relationship. Transfers to unrelated individuals or remote relatives can face effective rates of 25% to 50% in higher-tax cantons. The applicable canton is determined by the last domicile of the deceased for movable assets, and by the location of the property for real estate. Gifts made during a lifetime are subject to cantonal gift tax rules, which generally mirror the inheritance tax structure but with important variations on exemptions and rates.

This is general information only, not professional tax advice. Consult a qualified tax professional for your specific situation.