The case

As of 1 January 2026, new directives on the valuation of properties will enter into force in the canton of Zurich. The adjustments were necessary as the previous tax values no longer met the federal legal requirements due to the rise in property prices, especially as property tax values must not amount to less than 70 % of the market value and imputed rental values must not amount to less than 60 % of the market rent.

What are the consequences?

Source: Tax legislation / Canton of Zurich 

The commentary

The adjustments and new valuations mentioned above have the following effects:

Property tax values: For single-family homes and owner-occupied flats the property tax values will increase by an average of 48 %. In future, these will amount to around 75 % of the market value.

Owner-occupied rental values: Owner-occupied rental values will increase by an average of 11 % for single-family homes and 10 % for condominiums, i.e. around 65 % of market rents.

Age consideration: The maximum age consideration of buildings will be increased from 30 % to 40 %, which will benefit owners of older properties.

Hardship rule: The Government Council is planning to reintroduce a hardship rule to alleviate excessive tax burdens. This is to enter into force at the same time as the new directives, i.e. on 1 January 2026.

Notification and objections: The new valuations valid as of 1 January 2026 will be communicated to taxpayers at the beginning of 2027. Objections to the established values can be raised as part of the assessment procedure for the 2026 tax period.

These adjustments might lead to an increased tax burden. For this reason it is advisable to check the individual effects at an early stage and seek professional advice if required.

Please note that the adjustments mentioned could also be introduced in other cantons with low tax values and increased property prices.

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