Estimate Imputed Rental Value

According to the Federal Supreme Court, the imputed rental value must be at least 60% of the market rent. In practice, it ranges between 60% and 70% of market rent depending on the canton. For a property with a market value of CHF 1,000,000, the imputed rental value is typically between CHF 12,000 and CHF 20,000 per year. The calculation methods vary widely: some cantons use hedonic models (based on location, size, and condition), others use a percentage of the tax value or purchase price. In return for the imputed rental value, you can claim property maintenance and mortgage interest as deductions.

The imputed rental value is added to taxable income and thus increases your income tax. At a marginal tax rate of 30% and an imputed rental value of CHF 18,000, this means an additional burden of around CHF 5,400 per year. You can deduct: mortgage interest, maintenance costs (flat-rate or actual), and insurance premiums and administration costs. Tip: in years with major renovations, the actual deduction is often more beneficial than the flat rate.

On 28 September 2025, the electorate approved the abolition of the imputed rental value with 57.7% Yes (cantonal majority: 19 cantons Yes, 7 No). The Federal Council has set 1 January 2029 as the effective date (decision of 1 April 2026). The current system applies through tax year 2028. What will cease from 2029: Imputed rental value taxation, deduction for maintenance costs (flat-rate and actual), insurance premiums, and administration costs -- for both primary and secondary residences. The mortgage interest deduction will not be fully abolished but will only be granted proportionally (in proportion to taxable investment income) -- effectively zero for owner-occupiers without investment income. What remains or is new: - First-time buyer deduction: First-time buyers can deduct max. CHF 10,000 (married) or CHF 5,000 (single) in mortgage interest, declining linearly over 10 years. - Rented properties: Mortgage interest deductible proportionally. - Energy-saving deductions: The federal government eliminates them; cantons may maintain them until 2050. - Heritage preservation costs: Remain deductible at the federal level. - Property tax on secondary residences: New cantonal tax (optional), constitutionally enshrined. For owners with high mortgages and low imputed rental value burden, the abolition may be disadvantageous since the mortgage interest deduction effectively disappears for owner-occupiers. Check with the income tax calculator how the abolition could affect your tax burden.