Taxable value

What is taxable value? What is the difference between taxable value and market value? How can you find out the taxable value of your home, and is it good or bad to have a high taxable value? There are often many questions that need to be answered when you own or are planning to buy a property. In this section we will go through the most important things that you need to know regarding taxable value and why it is important to understand what this means.

What is taxable value?

Taxable value is the total value of a property you own which forms the basis for the calculation of how much municipal or national property tax you have to pay. As a standard rule, the taxable value is usually around 75 percent of the property’s market value, and it is the Swedish Tax Agency that determines the taxable value of your property. In order to ensure that the level of property tax does not become too high, there is a maximum limit that varies from year to year. In 2021 the maximum limit for property tax was SEK 8,524 for a single-family dwelling.

How the taxable value of a property is calculated

It is the Swedish Tax Agency that determines the taxable value of all properties in Sweden. Together with the Swedish Mapping, Cadastral and Land Registration Authority (“Lantmäteriet”) and an independent property appraiser, they produce a basis for the calculation of the taxable value of all properties in the country. As part of this process they consider factors such as the selling price of similar properties that have been sold in the area, and the age of the building.

The taxable value of houses is determined every third year and is set at 75 percent of the property’s market value. The market value is, in turn, based on the average prices during the two previous years, which means that the taxable value and market value may differ significantly.

Calculating the taxable value of your home

If you wish to find out the taxable value of your home, you need to log in to the “My Pages” section on the Swedish Tax Agency’s website. When you are logged in there, you can perform a new calculation to find out the taxable value of your property if, for example, you have carried out improvements or performed an extension. The Swedish Tax Agency’s website also contains information about the taxable value of other properties that you do not own. It can be a good idea to check out this information before buying a property.

Is it good or bad to have a high taxable value?

A common question among homeowners is whether it is good or bad to have a high taxable value. If your home has a high taxable value, this means that you must pay higher property tax, but it also means that your property is worth more. Thanks to the aforementioned maximum limit for property tax that is currently payable in Sweden, you will never have to pay more than a certain amount of property tax, no matter how high the taxable value of your property is.

Taxable value and market value

Taxable value and market value are both important figures to be aware of when you own or are planning to buy a property. Taxable value is the total value of a property for the purposes of calculating the property tax payable on that property, and is based on the previous year’s market value. Market value, on the other hand, is the price that you can expect to pay if buying the property in today’s market. As previously mentioned, these two values may differ significantly although, as a standard rule, the taxable value should be around 75 percent of the market value.

Notar’s professional and experienced estate agents would be pleased to help you identify the market value of your home via a free valuation. As part of this process we consider the location, condition and potential of your home, and we perform an annual assessment to ensure that we arrive at the most accurate market value possible.