Tax glossary
Imputed rental value (Eigenmietwert)
The imputed rental value (Eigenmietwert) is the notional rent that homeowners pay tax on as income for a property they live in themselves — in return, mortgage interest and maintenance costs are deductible.
If you live in a property you own, you must pay tax on an imputed rental value as income. The rationale: owners save the rent that tenants pay out of already-taxed income. The imputed rental value puts this advantage on an equal footing for tax purposes.
In the canton of Zurich, the imputed rental value is set officially and shown in your tax assessment notice. It is based on the market rent but is deliberately set well below it — the Federal Supreme Court allows a minimum of 60 per cent of the market rent.
The taxed imputed rental value is offset by deductions: debt interest, in particular mortgage interest, and property maintenance costs. Whether home ownership is advantageous for tax purposes therefore depends largely on the size of your mortgage and your maintenance spending.
What offsets it
The imputed rental value increases your taxable income. The following items work in the opposite direction.
- Mortgage interest and other debt interest, within the statutory limit
- Property maintenance — either as a flat rate or at actual cost
- Investments in energy saving and environmental protection
- Costs of preserving listed buildings
- Management costs charged by third parties
The agreed change of system
In 2025, Parliament decided to abolish the imputed rental value for owner-occupied homes, and the proposal was approved in a popular vote. In return, the deductions for maintenance and debt interest on owner-occupied property will largely disappear.
The change will not take effect immediately — it is tied to a constitutional amendment and implementation work in the cantons. Until it comes into force, the current rules with imputed rental value and deductions continue to apply unchanged. So nothing changes for the tax returns currently being filed.
Who gains, who loses
The current system tends to benefit owners with a large mortgage and high maintenance costs — their deductions exceed the imputed rental value. Households whose property is largely paid off are at a disadvantage: they pay tax on the imputed rental value with practically nothing to offset it.
This is exactly the situation many retirees are in. Anyone who has fully repaid their mortgage sees their taxable income rise by the imputed rental value, with no debt interest to set against it.
Example: a detached house in Winterthur
A house with an imputed rental value of CHF 24,000 carries a mortgage of CHF 600,000 at 1.5 per cent — giving CHF 9,000 in debt interest. The flat-rate maintenance deduction amounts to a set percentage of the imputed rental value, depending on the age of the property.
If the roof is renovated in one year for CHF 45,000, the actual maintenance costs far exceed the flat-rate deduction. In that year, you claim actual costs; in the other years, the flat rate. You can make this choice afresh in every tax period — but you have to make it actively.
Frequently asked questions: Imputed rental value (Eigenmietwert)
Do I also pay tax on an imputed rental value for a holiday home?
Yes. An imputed rental value also applies to second homes you use yourself. For properties in another canton, the tax is allocated between the cantons.
What applies to a rented-out property?
In that case, you pay tax on the actual rental income instead of an imputed rental value. Maintenance and debt interest remain deductible.
Is the imputed rental value being abolished now?
The change of system has been agreed, but the date it comes into force has not yet been set and depends on implementation by the cantons. Until then, the existing rules apply.
Can I challenge an imputed rental value that is too high?
Yes — the ordinary legal remedies are available against the official valuation. This is most likely to succeed if the condition or location of the property has been wrongly classified.
Related terms
Questions about this term?
We prepare your tax return — including the tricky parts.
You don’t need to master the jargon. Send us your documents; we check every deduction and file electronically on your behalf.