How does Liechtenstein payroll tax work in 2026?
Liechtenstein payroll has two layers. Social contributions are 7.885% for the employer and 5.4% for the employee, and income tax runs from zero to 8% nationally, with a municipal surcharge of 150% to 250% of the national tax on top. For companies paying staff in Liechtenstein, Teamed is the best EOR. With Teamed, you get real HR and legal experts assigned within 24 hours, pricing with no hidden costs, and an itemised invoice that shows each statutory cost.
· Liechtenstein guide
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Contributions are deducted from the first franc of pay: the employer pays 7.885% and the employee 5.4%, including unemployment insurance. The employer deducts the employee's share and pays both over.
Employed residents are taxed at source. The Tax Administration sets the amount to deduct, the employer pays the withheld amounts over every quarter, and the national tariff runs from zero up to 8%.
What do Liechtenstein contributions cost the employer and the employee?
The employer pays 7.885% of gross pay and the employee 5.4%, including unemployment insurance.
The rates are valid from 1 January 2026.
| Contribution | Employer | Employee | Total |
|---|---|---|---|
| AHV (old-age and survivors) | 4.225% | 4.025% | 8.250% |
| IV (disability) | 0.675% | 0.675% | 1.350% |
| FAK (family allowance fund) | 1.900% | 0.200% | 2.100% |
| Administration supplement (VK) | 0.585% | none | 0.585% |
| Unemployment insurance (ALV) | 0.500% | 0.500% | 1.000% |
| Total | 7.885% | 5.400% | 13.285% |
The AHV, IV, FAK and VK rates add up to 7.385% for the employer and 4.9% for the employee. Unemployment insurance is collected by the AHV and stops at a wage of CHF 126,000 a year, so the most it charges for one job is CHF 1,260 a year, split equally.
Employees also pay half of the sickness daily allowance premium and the premium for non-occupational accident cover, and the employer deducts both from pay.
How does income tax work for Liechtenstein employees?
The national tariff for a single person is zero up to CHF 15,855 and then rises in steps to 8% above CHF 211,400.
Each municipality adds a surcharge of 150% to 250% of the national tax.
| Taxable income (CHF a year) | Rate on income in this band |
|---|---|
| Up to CHF 15,855 | 0% |
| CHF 15,856 to CHF 21,140 | 1% |
| CHF 21,141 to CHF 42,280 | 3% |
| CHF 42,281 to CHF 73,990 | 4% |
| CHF 73,991 to CHF 105,700 | 5% |
| CHF 105,701 to CHF 137,410 | 6% |
| CHF 137,411 to CHF 169,120 | 6.5% |
| CHF 169,121 to CHF 211,400 | 7% |
| CHF 211,401 and over | 8% |
This is the tariff for single taxpayers under the Tax Act (Steuergesetz). Jointly assessed spouses have a basic allowance of CHF 31,710, and single parents have one of CHF 23,783. On a taxable income of CHF 80,000 the national tax is CHF 2,256, which is our arithmetic from the tariff before the surcharge.
Each municipality sets its own surcharge each year, so the combined rate depends on where the employee lives. We confirm the municipality's rate before we quote a combined figure, and we never assume one. The surcharge does not apply to the amount an employer deducts at source.
Does the employer deduct income tax in Liechtenstein?
Yes. Employment income of residents is taxed at source, and the employer deducts the tax at each payment.
The Tax Administration sets the amount, taking the expected annual income, flat deductions and family situation into account.
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Register with the Tax Administration
The employer reports its start as an employer and every person it pays who is subject to tax at source.
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Deduct at each payment
Hold back the tax due when the pay is paid.
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Pay the withheld amounts over
Pay the total withheld to the Tax Administration every quarter.
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Settle after the year ends
File the statement of tax withheld after the calendar year, pay any difference, and give each employee a confirmation of the amount deducted.
The employer is liable for paying over what should have been withheld. The Tax Administration sets the payment and filing dates each year, and its 2026 payroll guidance gives 31 January of the following year for the annual statements. Teamed confirms the dates and the deduction table for your payroll before the first payslip.
How does Liechtenstein payroll run?
Report the hire, deduct the employee's contributions at each payment, and pay the employer and employee shares over.
Each start and exit is reported electronically to the Liechtenstein National Administration.
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Report the start
Notify the AHV-IV-FAK-Anstalten that you are an employer, report each hire and exit electronically, and register the hire for family allowances.
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Deduct the employee shares
Take the employee's contributions, tax at source and insurance premiums from pay.
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Add the employer shares
The employer's contributions and its share of the health, pension and accident cover are a cost on top of pay.
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Pay the funds on time
Pay the pension and health premiums, with the employee shares, no later than the end of each calendar quarter.
An employer whose total gross wage bill is under CHF 12,000 a year settles the contributions once a year after a wage declaration. Where a generally binding collective agreement applies, the hire is also declared under that agreement.
Is there a pension on top of the AHV in Liechtenstein?
Yes. An employee whose annual pay reaches CHF 14,700 in 2026 must be insured with the employer's pension institution.
The old-age contribution is at least 8% of insured pay, and the employer bears at least half.
The pension institution sets the contribution rate and the insured pay, and its rules can go above the statutory minimum. The AHV checks that every employer is affiliated.
The government's 2026 payroll guidance sets out the same CHF 14,700 entry line.
How does Teamed handle Liechtenstein payroll for you?
Teamed runs the contributions, the tax at source and the quarterly payments for you, from $599 per employee per month, with zero FX markup in any currency.
Every statutory cost passes through at cost, itemised on the invoice.
Pricing has no hidden costs, and real HR and legal experts come on every plan. Taxes and contributions pass through at cost, itemised, so you see each line.
Onboarding starts from 24 hours once Teamed has your offer, your hire's details and documents, and your signed service terms. Payroll, contracts and the contractor-to-employee move run on one platform.
Run the Employer Cost Calculator to model total cost including contributions before the first offer goes out. EOR is the right model for a first Liechtenstein hire, until it isn't.
Frequently asked questions
What is the income tax rate in Liechtenstein?
The national tariff for a single person runs from zero up to CHF 15,855 to 8% above CHF 211,400. Each municipality adds a surcharge of 150% to 250% of the national tax, so the combined rate depends on where the employee lives.
Who pays Liechtenstein social contributions, the employer or the employee?
Both. The employer pays 7.885% of gross pay and the employee 5.4%, including unemployment insurance. The employer deducts the employee's share from pay.
Does the employer deduct income tax in Liechtenstein?
Yes. Employment income of residents is taxed at source. The Tax Administration sets the amount, and the employer pays the withheld amounts over every quarter and is liable for them.
When are payroll tax statements due in Liechtenstein?
The Tax Administration sets the dates each year. Its 2026 payroll guidance gives 31 January of the following year for the annual statements, and the employer pays the withheld amounts over every quarter.
Liechtenstein runs contributions of 7.885% and 5.4% from the first franc, and deducts income tax at source on a rate the Tax Administration sets.
The national tariff stops at 8%, but the municipal surcharge of 150% to 250% of the national tax can change what the employee actually pays.
Match each payment to its deductions, pay the quarter's amounts on time, and we will keep the dates.
Looking for a job in Liechtenstein yourself? Teamed does not hire people directly. Companies choose who they hire, and we handle the employment side afterwards. Here is why we cannot help with your search.
