The canton of Zurich has definitively decided against increasing imputed rental values

The government of the Canton of Zurich has now definitively decided to waive the planned increase in imputed rental values.
Due to the upcoming system change, the Canton of Zurich will no longer increase the current imputed rental values. After a transition period, the current system with imputed rental value and deductions for mortgage interest and maintenance will be abolished. The exact timing of the change will still be determined by the Federal Council.
Due to the planned abolition of imputed rental values, the planned increase is no longer necessary. Therefore, the government has decided on a transitional arrangement:

For properties built up to and including 2025

The imputed rental values will still be based on the directive from 2009. However, the asset tax values will be adjusted to the new 2026 directive from January 1, 2026, regardless of this transitional arrangement.

For properties built from 2026 onwards

For these properties, the new 2026 directive will apply. The valuation according to the new directive will result in an average increase of imputed rental values by around 10 percent. To offset this increase, the Canton of Zurich will provide a flat-rate deduction of 10 percent.

Outlook

For the upcoming 2025 tax return, the property values in the Canton of Zurich will remain the same as before.
Although the asset tax values will increase from the 2026 tax period onwards, this increase will have significantly less impact on taxes than the imputed rental value. This transitional arrangement is welcomed as it provides taxpayers with legal certainty.