Keyfacts:
- Tax burden increase in Zurich: From 2026, imputed rental values for single-family homes will be increased by an average of 11% and for condominiums by 10%, which will lead to a noticeable increase in the tax burden for many homeowners.
- Hardship rule: In order to cushion social hardship, a hardship rule will be introduced to relieve households where the tax burden is disproportionately high in relation to income and assets.
- Valuation by location: The adjustments to the imputed rental values are based on current market values, whereby location classes and land values in each Zurich municipality were reassessed in order to better reflect regional real estate development.
A fundamental reform of the imputed rental value system is being discussed throughout the country; adjustments will vary from canton to canton and have significant consequences for homeowners. The increase in imputed rental value will be implemented in Zurich from January 1, 2026. This adjustment became necessary due to two court rulings that deemed the previous valuation of properties no longer compliant with federal law. Here is an overview of what you need to know.
Why the revaluation in Zurich?
Since the last revaluation in 2009, the market values of properties in Zurich have risen sharply, particularly due to rising land prices. Appraisals show that the values of single-family homes and condominiums have increased by over 50%, while market rents have risen by around 15%. To take account of this development, property tax values are being increased by an average of 48% and imputed rental values for single-family homes by around 11% and for condominiums by 10%.
Effects on the tax burden
As the imputed rental value is regarded as notional income, the increase will also increase the taxable income of owners, which will lead to higher income taxes. This could affect lower-income households in particular, who may find it difficult to bear these additional costs. In such cases, the canton of Zurich is planning to reintroduce a hardship rule that will apply if the tax burden is too high in relation to income and assets.
What does this mean for owners?
Property owners in Zurich should be prepared for a higher tax burden, which may also have an impact on other areas such as access to social benefits or premium reductions. These adjustments could particularly affect older property owners who have lived in their homes for a long time. However, there is one relief: the new-build value of older properties can now be reduced by up to 40%, which should help to reduce the tax burden for long-term owners.
Overview of the cantons: Revaluations of property values
Overview of the cantons in Switzerland with planned and completed revaluations of property values.
| Coat of arms | Canton | Year of the planned / completed revaluation |
|---|---|---|
 | Zurich | 2026 |
| | Geneva | Regular, no fixed date |
| | Berne | 2020 |
| | Vaud | Regularly every 10-15 years |
 | Ticino | No fixed date |
| | Solothurn | 2025 planned |
| | Lucerne | 2026 |
 | St. Gallen | Regularly every 10 years |
 | Aargau | 2025 |
 | Grisons | Regularly every 10 years |
 | Basel-Stadt | No fixed date |
 | Basel-Landschaft | No fixed date |
| | Thurgau | Regularly every 15 years |
| | Schwyz | No fixed date |
 | Obwalden | 2025 planned |
| | Nidwalden | 2025 planned |
| | Uri | No fixed date |
 | Glarus | Regularly every 10 years |
 | Appenzell Ausserrhoden | Regularly every 10 years |
| | Appenzell Innerrhoden | Regularly every 10 years |
| | Zug | No fixed date |
| | Law | Regularly every 10-15 years |
| | Neuchâtel | Regularly every 10-15 years |
 | Wallis | Regularly every 10-15 years |
| | Schaffhausen | No fixed date |
| | Fribourg | Regularly every 10-15 years |
Conclusion
The adjustment of the imputed rental value reflects the increased market values and is a necessary measure to comply with current legislation. However, owners should not underestimate the potential financial burden and should find out about possible relief at an early stage. It is advisable to seek advice in good time to understand the impact of these changes on your financial situation and take action if necessary.
At properti, we are at your side as real estate experts to guide you through these changes and make the right decisions for your property.
Data are without guarantee. The information on these Internet pages has been carefully researched. Nevertheless, no liability can be assumed for the accuracy of the information provided.
