Summary
Japan's fixed asset tax (固定資産税) is an annual municipal tax on land, buildings and business assets. It is charged to the person registered as owner on 1 January, at a standard rate of 1.4% of the taxable value, the Ministry of Internal Affairs and Communications (MIC) says; municipalities may set a different rate by ordinance. In Tokyo's 23 wards the Tokyo Metropolitan Government levies it directly and adds city planning tax (都市計画税) at 0.3% in urbanisation areas, the Tokyo Bureau of Taxation says.
The tax is based on the value the municipality assesses under national valuation standards, not on market prices or inheritance-tax road prices. Land and buildings are revalued every three years; the current base year is fiscal 2024, so the next revaluation applies from fiscal 2027.
What this means for property owners in Japan
How the bill is worked out
| Step | What happens |
|---|---|
| 1. Assessed value | The municipality values each property under MIC's valuation standards. Buildings are valued at replacement cost less depreciation for age. |
| 2. Taxable value | Special measures and burden adjustment reduce the assessed value to the taxable base. |
| 3. Tax | Taxable base × 1.4% (fixed asset tax), plus × 0.3% city planning tax in Tokyo's 23 wards. |
Sources: MIC; Tokyo Bureau of Taxation.
The residential land reduction
Land under homes is taxed on a fraction of its assessed value, the Tokyo Bureau of Taxation says:
| Land | Fixed asset tax base | City planning tax base |
|---|---|---|
| Up to 200m² per home (small residential land) | 1/6 of value | 1/3 of value |
| Residential land above that | 1/3 of value | 2/3 of value |
In a condominium, each unit counts as one home. In the 23 wards, city planning tax on small residential land is also halved for fiscal 2026. Land with no home on it on 1 January, including land where a home is being built, does not get the reduction, except in qualifying rebuilds.
Burden adjustment
Because valuations can jump, taxable values on land rise gradually toward their full level. For residential land below its full level, the taxable value rises each year by 5% of the full taxable value, Tokyo says.
New homes
New homes that meet the floor-area conditions have their fixed asset tax on up to 120m² of living space halved for three fiscal years, or five years for fire-resistant buildings of three or more storeys, Tokyo says. Certified long-life homes get five and seven years.
Who pays and when
The owner on the register on 1 January is liable for the whole year, even if the property is sold on 2 January. Splitting the year's tax between buyer and seller is a commercial custom agreed between the parties, not a legal rule, Tokyo says. Bills are sent with a notice in the first instalment month and paid in four instalments; in the 23 wards these fall in June, September, December and February. No tax is charged where an owner's land in a municipality is valued under ¥300,000 or buildings under ¥200,000; from fiscal 2027 the building threshold rises to ¥300,000, MIC says.
Illustration: a new house in Tokyo
Illustration only, using Tokyo's own example. For a 150m² plot valued at ¥45 million with a new 100m² wooden house valued at ¥9 million, Tokyo calculates fiscal 2026 tax of about ¥99,750 on the land and ¥63,000 on the house after the new-home reduction, plus city planning tax of ¥22,500 on the land and ¥27,000 on the house.
FAQ
What is the fixed asset tax rate in Japan? A standard 1.4% of the taxable value, which a municipality can vary by ordinance. When is the next revaluation? Fiscal 2027; the current base year is fiscal 2024. Is fixed asset tax based on rosenka? No. It uses the assessed value set by the municipality under MIC's standards.
Education only — not tax, legal or investment advice. Confirm with a licensed professional.
What to do next
- Check the assessed values on your tax statement each year; you can inspect comparable values during the April inspection period.
- Tell the tax office if you build, demolish or change the use of a home; the land reduction depends on it.
- Agree in writing how the year's tax will be split when you buy or sell.
- Find a verified property manager to handle bills and notices: proprkey.com/en/pros?segment=operations
- Ask a verified tax adviser to check your position: proprkey.com/en/pros?segment=legalFinance