Eigenmietwert (Imputed Rent) Tax Calculator 2027

Switzerland is one of the only countries that taxes home-owners on the rent they would have paid if they were tenants — the Eigenmietwert. Cantonal rates apply 60-70% of estimated market rent as added income, partially offset by mortgage interest and maintenance deductions. The 2027 federal reform may abolish this — but until then it remains the main tax issue for Swiss home-owners with low or paid-off mortgages.

How Eigenmietwert Is Calculated

Each canton sets its own valuation method: most use 60-70% of estimated market rent of an equivalent rental property. The cantonal tax office issues an official Eigenmietwert (Schätzung) per property — you can request a review if you believe it is too high relative to the local rental market. The federal direct tax uses the cantonal number. Eigenmietwert is added to taxable income, then mortgage interest (federally fully deductible against investment income up to CHF 50k + investment income) and maintenance (either actual cost or a 10-20% flat rate) are deducted.

Net Tax Impact: High vs Low Mortgage

Owners with a high mortgage typically end up net-negative (deductions exceed Eigenmietwert) and benefit from the system. Owners who have paid down their mortgage face a large added tax burden. The October 2024 federal Parliament vote approved abolishing Eigenmietwert for primary residences alongside removing the mortgage interest deduction — this reform requires a referendum in 2026 to take effect for the 2028+ tax years. The change favors mortgage-free retirees but disadvantages highly-leveraged owners. Until the reform passes, the current system applies for 2027 tax filings.

Last updated May 2026. Sources: ESTV (Swiss Federal Tax Admin), AHV/IV.