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Glossary

Imputed Rental Value

The Imputed Rental Value is the notional income that owners must declare as income in kind for their owner-occupied home. It corresponds to the amount they could obtain in rent if the property were let. In return, mortgage interest and maintenance costs are deductible from income. The popular vote of 28 September 2025 approved a change of system that abolishes the Imputed Rental Value; the reform enters into force on 1 January 2029 after a transition phase.

At a glance

01

The Imputed Rental Value is added to taxable income as income in kind; in return, mortgage interest and maintenance costs are deductible.

02

It concerns owner-occupied residential property and is captured both in the direct federal tax and in the cantonal and municipal taxes.

03

The people and the cantons approved its abolition on 28 September 2025; the reform enters into force on 1 January 2029.

Frequently asked questions

The Imputed Rental Value counts as income in kind because owner-occupation represents a monetary benefit: those living in their own home save the rent. So that homeowners and tenants are treated comparably for tax purposes, the current system adds this notional rental value to taxable income. In return, mortgage interest and value-preserving maintenance costs are deductible.
Yes. In the popular vote of 28 September 2025 the change of system was accepted, abolishing the taxation of the Imputed Rental Value for primary and secondary properties. In return, various deduction options are also restricted. After a transition phase the reform enters into force on 1 January 2029.

Part of the topic

Steuern (privat)

Sources: Eidg. Finanzdepartement (EFD) · Eidg. Steuerverwaltung (ESTV)