Abolition of the imputed rental value: when it takes effect and what changes for owners in the Baselland
- What was decided and from when it applies
- How the imputed rental value is calculated in the Baselland today
- What changes from 2029 for owners in the Baselbiet
- Who wins, who loses: worked example from Liestal
- Until the end of 2028: what you should still make use of
- Mortgage, buying and selling: what changes for buyers and sellers
- Let properties: everything stays and becomes relatively more attractive
Hardly any tax issue occupies owners in the Baselbiet as much as the imputed rental value: a fictitious income that is taxed even though not a single franc arrives in the account. That will soon be over. After the popular vote of September 2025, the Federal Council decided in April 2026: the change of system in the taxation of home ownership takes effect on 1 January 2029 . Until then everything stays as it is, including in the canton of Basel-Landschaft, which no longer adjusts its imputed rental values following the cantonal parliament’s decision of January 2026. This guide explains exactly what was decided, how the imputed rental value is calculated in the Baselland today, which deductions disappear with it and who comes out ahead on balance. With a worked example from Liestal and a list of what you should still get done in the next two years.
In brief
- Vote of 28 September 2025: 57.7 % yes to the change of system; on 1 April 2026 the Federal Council set the entry into force for 1 January 2029
- From 2029 the imputed rental value on primary and secondary homes is abolished; at the same time the maintenance deduction and the mortgage interest deduction for the owner-occupied home disappear
- First-time buyers may still deduct mortgage interest for ten years: a maximum of CHF 10,000 for married couples, CHF 5,000 for single persons, 10 % less each year
- In the Baselland the imputed rental value is currently around 60 % of the market rent; it remains unchanged until the end of 2028. Renovations you still want to deduct belong in the years 2026 to 2028
- Let properties are not affected: rental income, maintenance and the proportional mortgage interest continue to be taxed and deducted as today
What was decided and from when it applies
On 28 September 2025 the people and the cantons accepted the federal decree on cantonal property taxes on second homes with 57.7 % yes. The federal act on the change of system in the taxation of home ownership was tied to this decree, and with it the abolition of the imputed rental value. On 1 April 2026 the Federal Council set the date: the new rules apply from 1 January 2029, i.e. for the first time for the 2029 tax return, which you will complete in spring 2030.
Why so late? The Tax Harmonisation Act normally gives the cantons at least two years to adapt their tax laws. The majority of the cantonal finance directors had asked in the consultation for entry into force no earlier than 2029; the Federal Council also wanted to give the cantons the opportunity to introduce the new property tax on second homes at the same time. The homeowners’ association had demanded 2028 and sharply criticised the decision, but that changed nothing. Bringing it forward is not planned.
For you this means: in the 2026, 2027 and 2028 tax years everything stays the same. The imputed rental value is taxed, maintenance and mortgage interest remain deductible. How today’s system works in detail is described in our guide to imputed rental value and maintenance deductions.
How the imputed rental value is calculated in the Baselland today
The canton of Basel-Landschaft does not calculate the imputed rental value from comparable rents but from the insured building value of the building insurance, i.e. the pure value of the building without land. This value is multiplied by a municipal factor (Liestal 0.949, Arlesheim 1.09, Oltingen 0.649), an age factor (buildings over 25 years 0.9, over 85 years 0.8) and, for condominiums, by 0.9. A graduated percentage is applied to the tax building value determined in this way, which is 63.23 % for small values and decreases as the value rises.
According to the cantonal tax manual, the result lies between 60 and 65 % of the market rent; for the direct federal tax the cantonal imputed rental value is multiplied by 1.2. An example from the tax manual: a house in Liestal built in 1928 with an insured value of around CHF 56,500 gives an imputed rental value of CHF 16,598 for the cantonal tax and CHF 19,918 for the federal tax. If in an individual case the value is demonstrably below 60 % of the market rent, the tax administration raises it ex officio; if it is above, you can request a reduction using comparable properties.
Since a Federal Supreme Court ruling of 2017, the canton had been under pressure to systematically review its imputed rental values, some of which were too low. The survey of living space planned for this purpose was finally rejected by the cantonal parliament on 29 January 2026 by 69 votes to 4 : a cantonal reform that would only apply for three more tax years is no longer worthwhile. For owners in the Baselbiet this means: Until the end of 2028 your imputed rental value stays as it appears in your tax return today.
What changes from 2029 for owners in the Baselbiet
The change of system is a package: the imputed rental value disappears, but with it disappear the deductions that previously offset it. These are the new rules for the owner-occupied home:
- No more imputed rental value , neither for the primary home nor for the holiday home, at federal, cantonal and municipal level
- No more maintenance deduction for owner-occupied properties: neither the flat rate (in the Baselland currently 20 % or 25 % of the imputed rental value) nor the actual costs of repairs, heating replacement or façade renovation are deductible
- No more mortgage interest deduction for the mortgage on the owner-occupied home. Anyone who also owns a let property may only deduct mortgage interest in proportion to the value of that property relative to total assets
- First-time buyer deduction: anyone buying an owner-occupied home in Switzerland for the first time may deduct mortgage interest for ten years, a maximum of CHF 10,000 for married couples and CHF 5,000 for single persons in the first year, then 10 % less each year. The deduction does not apply to second homes
- Energy-saving and environmental measures: for the direct federal tax the deduction is abolished; the cantons may keep it for a limited period, until 2050 at the latest. Whether and for how long Basel-Landschaft will do so has not yet been decided
- Heritage protection: costs for heritage conservation work remain deductible
- Second homes: the cantons may introduce a special property tax on predominantly owner-used second homes to compensate for the shortfall. This mainly affects tourist cantons; for a holiday home in Valais or Graubünden you should expect it
Unchanged remain the wealth tax on the tax value of the property, the property gains tax on sale and the property transfer tax. The banks’ affordability rules do not change as a result of the change of system either.
Who wins, who loses: worked example from Liestal
Whether you benefit from the change of system depends on two figures: your mortgage and your maintenance. The smaller both are, the bigger the gain. We calculate with the Liestal house from the tax manual (cantonal imputed rental value CHF 16,598, maintenance flat rate 25 %) and a marginal tax rate of 30 % for canton, municipality and Confederation combined: a guide value for a middle income in the Baselbiet.
Case 1: paid-off house, retired couple: today the imputed rental value less the flat rate (CHF 4,150) is taxed, i.e. around CHF 12,450 of taxable income. From 2029 that disappears. Saving: around CHF 3,700 per year.
Case 2: mortgage of CHF 500,000 at 1.7 %: mortgage interest of CHF 8,500 plus the flat rate of CHF 4,150 are set against the imputed rental value; today around CHF 3,950 remains taxable. From 2029 it is zero. Saving: around CHF 1,200 per year.
Case 3: mortgage of CHF 800,000 at 2.0 %, plus a renovation every five years: mortgage interest of CHF 16,000 plus maintenance currently exceed the imputed rental value by around CHF 3,500; this loss reduces the remaining income. From 2029 there is neither imputed rental value nor deduction. Additional burden: around CHF 1,000 per year, and every renovation becomes a purely private pleasure for tax purposes.
The higher mortgage rates rise, the worse case 3 becomes. At 3 % interest, the heavily mortgaged owner pays noticeably more from 2029 than today, unless he amortises.
The rule of thumb: those with little debt and little maintenance win. Those who are heavily mortgaged and renovate a lot lose. First-time buyers lie in between: the time-limited deduction cushions the first years. How this specifically affects your tax return is calculated by our property fiduciary Roman Frey as part of the tax return for property owners .
Until the end of 2028: what you should still make use of
Two tax years remain in which the old system with all its deductions applies. Anyone planning maintenance should keep an eye on the calendar.
- Bring renovations forward: heating replacement, windows, kitchen, bathroom, façade; value-preserving work that you pay for in the years 2026 to 2028 is deductible for the last time. What counts is the invoice or payment date, not the order. Larger projects can be spread over two tax years so that the deduction is not wasted
- Actual costs instead of flat rate: in years with high maintenance costs, deducting the actual costs is better than the flat rate. Collect invoices, keep receipts
- Energy-efficiency renovations: insulation, photovoltaics and heat pumps are deductible until 2028 at federal and cantonal level, including carry-forward to the two following years. What the Baselland will still allow from 2029 is open: do not plan on a deduction after 2028
- Condominium ownership: contributions to the renovation fund are deductible today. A temporarily higher contribution until 2028 can make sense if the owners’ community is planning renovations anyway
- Review amortisation, do not rush: from 2029 the mortgage on the owner-occupied home brings no more tax advantage. Anyone with liquid funds from which they expect no higher return than the mortgage rate will amortise more cheaply from then on. Until the end of 2028, however, the interest is still deductible: a reason not to rush the decision and not to forget liquidity in old age
- Check tax value and imputed rental value: if your imputed rental value is above 60 % of the market rent, you can request a reduction until 2028; the under-use deduction for rooms permanently not used also applies until the end
Mortgage, buying and selling: what changes for buyers and sellers
For affordability nothing changes: banks continue to calculate with a notional interest rate of around 5 %, amortisation and running costs; the tax effect plays no role in this calculation. What changes is the attitude towards the mortgage. Until now it made tax sense to keep the mortgage high; from 2029 the debt-free home is the cheaper option. What happens on a sale with a running mortgage is explained in our guide to the mortgage when selling a house.
Buyers receive a time-limited advantage with the first-time buyer deduction: a married couple buying for the first time in 2029 deducts up to CHF 10,000 in mortgage interest in the first year, CHF 9,000 in the second, and so on down to zero in the eleventh year. Anyone who has ever owned residential property in Switzerland gets nothing. The purchase does not become cheaper as a result, but the first years become easier.
Sellers do not need to speed anything up because of the change of system. Demand for home ownership is more likely to rise than fall: a house without imputed rental value is more attractive for pensioners and families, and banks expect prices to continue rising slightly in 2026 and 2027. The right time to sell depends, as before, on condition, location, property gains tax and your personal situation, not on the date of the tax reform. A free valuation shows where your house stands today.
Let properties: everything stays and becomes relatively more attractive
The change of system only affects owner-occupied residential property. Anyone who lets a flat or an apartment building continues to pay tax on the rental income and to deduct maintenance, management and the proportional mortgage interest. For investment properties nothing changes in the tax calculation.
In relative terms the let property even becomes more attractive: mortgage interest remains deductible here, while it disappears for the owner-occupied home. Anyone who owns both should rethink their financing by 2029: it can make sense to reduce the mortgage on the home and leave the borrowing on the investment property. Note the new proportional rule: only the share of mortgage interest that corresponds to the value of the let property relative to total assets is deductible.
Anyone who does not want to sell their home after the children have moved out or in old age, but to let it, will find the considerations in our guide Sell or let. We take care of the letting for one month’s rent, only on success.
- Until the end of 2028 today’s system applies in full; schedule renovations of the home in these years
- From 2029: no imputed rental value, but also no maintenance and no mortgage interest deduction for the home
- Reassess amortisation from 2029; keep liquidity for old age and maintenance
- With a home plus an investment property: restructure the financing, observe the proportional interest rule
- Tax questions around your property are clarified by Roman Frey as part of our financial advice and fiduciary services
Questions on this topic.
When will the imputed rental value be abolished at the earliest?
On 1 January 2029. The Federal Council set this date on 1 April 2026. For the 2026 to 2028 tax years, today’s system with imputed rental value, maintenance deduction and mortgage interest deduction applies unchanged.
Does the abolition also apply to holiday homes and second homes?
Yes, the imputed rental value is also abolished for second homes. In return, the cantons may introduce a special property tax on predominantly owner-used second homes. Whether and at what level is decided by each canton itself.
Can I still deduct renovations of my home from tax after 2028?
No. With the imputed rental value, the maintenance deduction for owner-occupied properties also disappears, both the flat rate and the actual costs. Only costs for heritage conservation work remain deductible; the cantons may continue to allow energy-saving measures for a limited period until 2050.
Should I amortise my mortgage now?
From 2029 the mortgage on the owner-occupied home brings no more tax advantage; anyone with free funds and no better investment option will amortise more cheaply from then on. Until the end of 2028, however, the interest is still deductible. What remains decisive is your liquidity in old age and whether you can invest the money better elsewhere, not the tax alone.
Who counts as a first-time buyer and how high is the deduction?
Anyone buying an owner-occupied home in Switzerland for the first time. The mortgage interest deduction is a maximum of CHF 10,000 for married couples and CHF 5,000 for single persons in the first year and decreases by 10 % each year until it expires after ten years. There is no first-time buyer deduction for second homes.
Will the canton of Basel-Landschaft still raise the imputed rental value before 2029?
No. On 29 January 2026 the cantonal parliament rejected the planned survey of living space for the systematic review of imputed rental values by 69 votes to 4. Your current imputed rental value remains in place until the end of 2028, unless in an individual case it is below 60 % of the market rent.
What does the change of system mean for your house?
We work out with you what changes from 2029 for your taxes, your mortgage and your plans, and tell you what your house is worth today. Free of charge and without any sales pressure.
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