News Taxes

Important changes for property owners in the canton of Zurich from 2026

From January 1, 2026, the tax basis for real estate in the canton of Zurich will change fundamentally. The valuation of real estate and the calculation of the imputed rental value will be subject to new regulations. These adjustments affect both current and future owners – and can have a noticeable impact on the tax burden.

Due to the public vote on September 28, 2025, on the abolition of the imputed rental value, the announced increase in the imputed rental value (but not the valuation of real estate) is planned to be waived. During the transition phase, the current values will therefore remain applicable. The new rules will only apply to new buildings constructed from 2026 onwards. The cantonal government will have to decide on this.

Why is there a revaluation?

The previous tax values date back to 2009 and are no longer considered up to date. Court rulings have also made it clear that they no longer meet federal legal requirements. For this reason, all properties will be revalued, with greater consideration being given to the location quality and age of the properties.

What does this mean for owners?

Higher wealth tax values: For single-family homes and condominiums, the wealth tax value will increase by an average of around 48%, and for multi-family homes by around 41%.
Greater differentiation according to location: In future, each municipality will be divided into a maximum of nine location categories. This means that attractive locations will be valued higher, while less sought-after locations will be valued lower.
Consideration of building age: The age deduction will increase from the current 30% to up to 40%. Older properties in particular will benefit from a slightly lower valuation as a result.

Adjustments to the imputed rental value

Anyone who lives in their own property must pay tax on a imputed rental income. New rules will apply from 2026:

For single-family homes, the imputed rental value will in future be between 1.7% and 3.5% of the wealth tax value, depending on the location (instead of the previous fixed rate of 3.5%). On average, this represents an increase of 11%.
For condominiums, the previous uniform rate of 4.25% will be reduced to a range between 2.1% and 4.2%. On average, this represents an increase of 10%.
Depending on the location, the imputed rental value may decrease. However, in very good locations, a significant increase is also possible.
In cases of hardship, e.g. for owners with low incomes or special burdens, the imputed rental value may be reduced.

With reference to the above, the current imputed rental values are to remain applicable until the final abolition of imputed rental value taxation, and the adjustments will only apply to new buildings from 2026 onwards. The abolition is not expected to take place until the 2028 tax year at the earliest.

Multi-family and commercial properties

Valuation will continue to be based on the income approach. However, the capitalization rate for the wealth tax value will now be set differently depending on the municipality (between 4.8% and 6.5% instead of the previous uniform rate of 7.05%).

What should property owners do now?

Get informed early: Check how much the revaluation could affect your property.
Assess the financial impact: Higher tax values may increase your wealth and income taxes.
Adjust your planning: Whether you are already a property owner or are planning to buy, take the new tax values into account in your long-term financial planning.

You are expected to receive the new assessment notices in 2027 together with your 2026 tax return.

All adjustments are subject to an appeal by the Homeowners Association, which is demanding a review of the content of the adjustments and is currently pending before the Federal Supreme Court.

If you have any questions about what this could mean for your personal situation, please contact us for individual advice or further information: Remo Merz, certified tax expert remo.merz@fineac.ch.

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Remo Merz, 6th October 2025