Imputed rental value: what is it and how is it calculated?
Do you live in your own property? Then you must pay tax on the imputed rental value as fictitious income. Comparis explains what to keep in mind.
26.08.2025
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1. What is imputed rental value?
Since 1934, anyone who owns residential property in Switzerland and lives in it must pay tax on what is known as the imputed rental value as fictitious income. This tax is payable at both the federal and cantonal levels.
The value is based on the income that you would receive as the owner if you rented out your property. It is determined by the canton and applies to homeowners and condominium owners.
In short, you pay income tax even though you don’t actually earn income from your home ownership.
2. Why does imputed rental value exist?
Homeowners don’t pay any rent and can thus save money. In addition, they can deduct mortgage interest and maintenance costs from their taxable income, which gives them a tax advantage.
Save on tax with mortgages
You are taxed on the imputed rental value. However, you may deduct mortgage interest from your taxes. As a result, it can be worth taking out a mortgage for tax reasons.
The imputed rental value compensates for this advantage and is intended to ensure more fairness in tax policy. However, this policy is politically controversial. Many homeowners feel that the tax on the imputed rental value is unfair, as it is levied on a fictitious income.
3. Will imputed rental value be abolished in Switzerland?
The National Council and the Council of States have been discussing the abolition of imputed rental value for several years. In the 2024 winter session, a resolution was finally passed to abolish imputed rental value. On 28 September 2025, the Swiss population will vote on the abolition of this tax regulation.
What consequences would the abolition of imputed rental value have for property owners?
If imputed rental value were to be abolished, you as the property owner would no longer have to pay tax on the notional income from the home you live in yourself.
At the same time, however, you would no longer be able to deduct mortgage interest and value-preserving renovations from your taxable income. Abolition would primarily benefit homeowners who have largely or fully paid off their property mortgage debt. Property owners with high mortgage debt, on the other hand, will have little to no advantage from the abolition of imputed rental value.
4. How is imputed rental value calculated?
The method for calculating imputed rental value is regulated on a cantonal basis. In most cantons, the imputed rental value corresponds to around 60–70% of the market rental value.
The Federal Department of Finance (FDF) publishes the calculation basis for your canton. If you have any questions, contact the relevant tax authority in your canton.
These factors can affect the imputed rental value, depending on the canton (list not exhaustive):
Market rental value
Market value of the property
Wealth tax value
Insured value
Cadastral value
Living space
Net floor space
Year of construction
Location and surrounding area
Local rent level
Individual living situation
Standard of construction
Example calculation for the imputed rental value in Zurich
In the canton of Zurich, the imputed rental value is calculated differently depending on the type of property: for single-family homes, it is 3.5% of the wealth tax value, and for apartments, it is 4.25%.
The wealth tax value consists of the current building value* and the land value**.
For a 20-year-old, single-family home, the costs could look like this:
| Wealth tax value | CHF 1,210,000 |
|---|---|
| of which 3.5% = imputed rental value | CHF 42,350 |
*The current building value is the value of a building, which results from the estimated new building costs minus depreciation for age.
** The land value is the value of the plot.
The base value makes things more complicated
In Zurich, if the base value is over 120,000 francs for a single-family house or over 40,000 francs for an apartment, other calculations apply. The base value is determined by the building insurance institute of the canton of Zurich (GVZ). If you are unsure, contact the Zurich Cantonal Tax Office.
5. Other frequently asked questions about imputed rental value in Switzerland
No, you do not have to pay tax on the imputed rental value of rented properties. Instead, you must declare and pay tax on the actual rental income as income.
You also have to pay tax on holiday apartments and holiday homes. If you also rent out the property, you must pay income tax on any rental income. You do not have to pay any tax on imputed rental value during this period.
However, even if the property is vacant or unused, you are still liable to pay tax. An exception applies if you cannot use the property as a result of objective, external circumstances. Properties that demonstrably cannot be rented or sold are also exempted.
Have your housing needs changed, leaving some rooms in your house unused? If so, you may be able to claim a lower imputed rental value. This may be possible when a grown-up child moves out or in the event of a divorce, for example.
However, if the freed-up rooms are still used – for example as guest bedrooms or hobby rooms – you cannot claim a lower imputed rental value. You are also not entitled to a reduction for holiday apartments.
This article was first published on 20.03.2019
