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Imputed rental value abolished in 2029: what changes for you

Approved on 28 September 2025, in force on 1 January 2029: the end of the notional income, but also of maintenance and interest deductions for your home. Who wins, who loses, what to do before the end of 2028.

Updated October 2026

57.7%
yes votes on
Entry into force set by the Federal Council
2028
Last tax year with imputed rental value and maintenance cost deduction

What is the imputed rental value?

An owner who lives in their own home is currently taxed on a notional income, the imputed rental value: the rent they save by not being a tenant, added to taxable income. Each canton sets it using its own method, generally between 60 and 70% of market rent (a 60% minimum required by the Federal Supreme Court for cantonal tax, 70% for federal direct tax).

In return, the owner deducts mortgage interest, maintenance costs (a flat rate of 10 or 20% depending on the age of the building, or actual costs) and energy-saving investments. Heavily indebted or renovating, they gain; mortgage repaid, they lose.

After several attempts, parliamentary initiative 17.400 (2017) succeeded: on 20 December 2024 Parliament adopted the Federal Act on the change of system for the taxation of residential property, coupled with a constitutional decree allowing a cantonal tax on second homes, which was put to the popular vote.

The vote of 28 September 2025 and the timeline

57.7% yes nationally, a no in French-speaking Switzerland

The federal decree was approved on by 57.7% of voters and a majority of cantons, which triggered the entry into force of the act abolishing the imputed rental value. French-speaking Switzerland voted no (Vaud 63.75%, Neuchâtel 61.57%), but the Tax Harmonisation Act is binding on the cantons: the reform applies everywhere.

Entry into force: 1 January 2029

The Federal Council set the date for at its meeting of : the Tax Harmonisation Act normally gives the cantons two years to adapt their legislation and introduce the second-home tax at the same time. Current law applies up to and including the 2028 tax period.

By 2029: cantonal implementing laws

Each canton abolishes the imputed rental value and the related deductions, decides whether to keep a transitional energy deduction and whether to introduce a tax on second homes. Bills in preparation in 2026 and 2027.

What changes from the 2029 tax period

End of the imputed rental value

No more notional income on owner-occupied housing, main or second residence, at all three levels

Maintenance costs abolished

No more deduction (flat rate or actual costs) for the home you occupy; kept for rented or leased property

Mortgage interest limited

Deductible only in proportion to rented property within total wealth

First-time buyer deduction

First home in Switzerland: interest deductible for ten years, cap in the order of CHF 10,000 (couple) or CHF 5,000, decreasing; exact amounts in the act

Energy savings

No longer deductible for federal direct tax; cantons may keep a transitional deduction for a limited period

Tax on second homes

New constitutional competence: a cantonal property tax on owner-occupied second homes

Winner or loser? It depends on your situation

High or repaid mortgage, planned renovations, second home, canton: the abolition of the imputed rental value does not affect two owners the same way. The useful decisions (works, amortisation, mortgage renewal) are taken before the end of 2028.

Contact us to review your tax return before and after 2029.

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Frequently asked questions

Is my second home affected?
Yes, in two ways: the imputed rental value also disappears for owner-occupied second homes, and the decree approved on 28 September 2025 allows the cantons to introduce a special property tax to offset their losses. Tourist cantons are the most likely to use it; details set by 2029.
Should I renovate before the end of 2028?
If work is planned anyway, paying for it by the end of 2028 lets you deduct it one last time (actual costs or flat rate, energy-related costs carried forward over two periods for federal tax). Renovating solely for the deduction is rarely worthwhile: it covers only a fraction of the expense, at your marginal rate.
Who wins and who loses with the abolition?
Winners: small or repaid mortgage and a home needing no major work, typically retirees. Potential losers: heavily indebted owners whose interest and maintenance exceed the imputed rental value, older properties to renovate, second homes in cantons that will create a special tax. The first-time buyer deduction softens the effect for young households.

Homeowner? Prepare for 2029 with your next tax return

A before/after 2029 simulation on your own return. Next step: book a call slot online (two minutes). At the chosen time, a specialist reviews your situation with you, and your quote reaches you within the hour after the call. First call and quote are free, with no commitment.

Simulate my tax before and after 2029

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Further reading: real estate and capital gains · retirement planning · tax declarations · our 7 cantons