Japan Property Taxes: Registration, Acquisition, Fixed Asset

This article is part of the Japan property series on transaction costs, and it answers one question: how the registration license tax, the real estate acquisition tax and the fixed asset tax that buyers meet in Japan are calculated. Brokerage fees, management fees and insurance, as well as the taxes on renting out or selling, are covered in the main article, “Buying Property in Japan Costs More Than the Price: Brokerage, Registration, Taxes, Insurance and Holding Costs”.

Buying a home in Japan mainly involves three taxes: the registration license tax (登録免許税) paid when the registration is filed, the real estate acquisition tax (不動産取得税) levied once by the prefecture after you acquire the property, and the fixed asset tax (固定資産税) levied every year by the municipality. A property in an urbanization promotion area may also carry the city planning tax (都市計画税). None of these is calculated on the purchase price. Each has a standard rate and a reduced rate, and some reductions expire as early as March 31, 2027.

Why Can’t You Estimate the Taxes From the Purchase Price?

The first reason is that the calculation base differs. These taxes use the value recorded in the fixed asset tax ledger, known as the fixed asset assessed value (固定資産評価額), not the price you negotiated.

The second reason is that payment timing and the taxing authority differ. The registration license tax is paid when the registration is filed; the real estate acquisition tax is paid on a bill that arrives later; the fixed asset tax is charged to whoever is the owner on January 1 each year.

The third reason is that the reduction measures carry conditions. Whether a reduced rate applies to a given tax depends on whether you live in the home yourself, its floor area, the year the building was completed, and the date on which you acquired it or registered it.

The Short Answer: How to Read the Three Taxes

First ask the seller or broker for the fixed asset valuation certificate (固定資産評価証明書). In principle all three taxes start from the assessed value on that certificate; only the mortgage’s security-interest registration is calculated on the loan amount. The registration license tax on a land transfer is 2%, and 1.5% for registrations made before March 31, 2029. The reduced rates for buildings and mortgages apply only to individuals who live in the home themselves. The standard rate of the real estate acquisition tax is 4%, and 3% for land and homes acquired before March 31, 2027; a newly built home gets a deduction of 12 million yen per dwelling, and this also applies to rental use.

The standard rate of the fixed asset tax is 1.4%, with a special rule for residential land that also applies to the land under rental homes. An owner living overseas must, in principle, arrange a tax administrator for the real estate acquisition tax and the fixed asset tax.

Stamp duty is shown for one price band only as an example; other bands have other amounts. The “owner-occupation required” column summarizes the conditions in each provision as of September 2026.

Registration License Tax: What to Check Before Filing

The registration license tax is calculated on the registered value in the ledger, with land and building calculated separately. When you buy an apartment, there is the transfer of the land share as well as the building. Under the supplementary provisions of the Registration License Tax Act, the base can currently be the value registered as of December 31 of the year before the filing date’s year, or as of January 1 of the filing year, with the details set by government ordinance. If a new building has no registered value yet, the registrar determines it.

To apply the reduced rates for owner-occupation, you must live in the home yourself and attach a certificate of residential house (住宅用家屋証明) issued by the municipality to the registration application; submitting it afterward means the reduced rate cannot be applied. The 0.3% for a building transfer applies only to acquisition by sale or court auction (競落); acquisition by gift or inheritance does not qualify. An existing home must have been completed on or after January 1, 1982, or meet the earthquake-resistance standard.

If you do not live in the home yourself, the building transfer is taxed at 2%, the ownership registration at 0.4%, and the mortgage security interest at 0.4% of the loan amount. The 1.5% on land transfer does not depend on owner-occupation and can still apply.

Real Estate Acquisition Tax: How the Bill Is Worked Out

The real estate acquisition tax is levied once by the prefecture where the property is located. Purchase and new construction are both taxable whether or not you register, while acquisition by inheritance and similar cases are not taxed. The tax is not paid at handover; you pay on the bill that is sent later. The calculation order is roughly as follows:

1. Find the value first. Use the registered value in the ledger, not the purchase price or the construction cost. If a new building has no registered value yet, the prefecture assesses it separately.
2. Halve the residential land. For residential land acquired before March 31, 2027, including the land share of an apartment, multiply the value by 1/2.
3. Subtract the deduction from the building. A new home gets a deduction of 12 million yen per dwelling; an existing home gets a deduction according to its completion date, as explained below.
4. Check the minimum taxable amount. The amount that must be multiplied by the rate after deductions is called the taxable base. For acquisitions on or after April 1, 2026, no tax is due if the land is under 160,000 yen, a building acquired through new construction, extension or reconstruction is under 660,000 yen per dwelling, or a building acquired by sale or other means is under 340,000 yen per dwelling.
5. Apply the rate. For acquisitions before March 31, 2027, land and homes are taxed at 3%, and non-residential buildings such as shops and offices at 4%.
6. Subtract one more amount from the land tax. Qualifying residential land can have a further amount subtracted from the land tax, calculated as explained below.

The minimum taxable amounts in step 4 were raised on April 1, 2026; for acquisitions on or before March 31, 2026, the old amounts of 100,000, 230,000 and 120,000 yen still apply. If you acquire adjoining land within 1 year after the first acquisition, the two must be judged together.

New Home Deduction: Rentals Qualify, but the Floor Area Must Fit

A newly built home, including a new home bought before anyone has lived in it, can have 12 million yen deducted from its value per dwelling; in an apartment building each separate unit counts. A certified long-life quality home (認定長期優良住宅) gets 13 million yen. If the value is below the deduction, the deduction goes only as far as the value.

For acquisitions on or after April 1, 2026, the floor area condition is at least 40 sq m and at most 240 sq m, and the same applies to rental use. The area is judged on the actual condition and, for an apartment, includes the proportionally allocated common areas, so it may differ from the registered area. In designated urban regeneration emergency development zones within Tokyo’s special wards, the lower limit for non-rental homes remains 50 sq m until March 31, 2031.

Existing Home Deduction: You Must Live There, and the Amount Depends on the Completion Date

The deduction for an existing home is limited to an individual who acquires it to live in it, floor area of at least 40 sq m and at most 240 sq m (for acquisitions on or after April 1, 2026), and it must meet an earthquake-resistance condition. The deduction is the amount that applied when the home was newly built:

• Newly built on or after April 1, 1997: 12 million yen
• April 1, 1989 to March 31, 1997: 10 million yen
• July 1, 1985 to March 31, 1989: 4.5 million yen
• July 1, 1981 to June 30, 1985: 4.2 million yen
• Earlier buildings get lower amounts; buildings newly built on or before June 30, 1954 get no deduction

The earthquake-resistance condition is construction on or after January 1, 1982. For a building completed on or before December 31, 1981, an architect or similar professional must certify that it meets the new earthquake-resistance standard, and the inspection must have been completed within 2 years before the acquisition date. The proof is limited to an earthquake-resistance standard conformity certificate, a housing performance evaluation report, or the contract document for warranty insurance on the sale of an existing home. A building completed between July 1 and December 31, 1981 falls in the 4.2 million yen band but still needs the earthquake-resistance proof.

The completion date is taken from the fixed asset tax ledger, that is, from the valuation certificate, and may differ from the registry. In Tokyo, for example, a certificate of residence (住民票) must be attached to the filing; an existing home bought to rent out, where you do not live yourself, cannot use this deduction.

Residential Land Reduction: One More Amount Off the Land Tax

When you acquire residential land and meet the conditions, the larger of the following two amounts can be subtracted from the land tax:

• 45,000 yen
• The land price per sq m x 2 times the floor area of the home (capped at 200 sq m per dwelling) x your ownership share x 3%. For residential land, the price per sq m used is the price after halving.

For land under a new home, the condition is that you build a home on it within 3 years after acquiring the land, or that the same person acquires the unused new home and its land within 1 year after completion; simultaneous acquisition also counts. The 3 years is the explanation given by the Tokyo Metropolitan Bureau of Taxation. For land under an existing home, you must acquire the existing home on it within 1 year from the land acquisition date (simultaneous acquisition included), and that home must meet the conditions for the existing home deduction. An existing home bought to rent out therefore cannot use this land reduction either.

Filing and Payment: Tokyo as an Example

In Tokyo, you must file with the Metropolitan Tax Office within 30 days after acquisition, including for unregistered properties. If you have applied for registration within 30 days, filing is in principle not required, but to apply a reduction measure you must still file with the documents attached. Bills are mailed around the 7th of each month, the payment deadline is in principle the end of the month in which it is sent, and it cannot be paid by account transfer. Deadlines in other prefectures follow local rules.

**Example:** A buyer living overseas purchases, in November 2026, a brand-new apartment in Tokyo that no one has lived in, to rent out, with an exclusive floor area between 40 and 240 sq m. For the registration license tax, the land share is taxed at 1.5%; because the buyer does not live there, the building ownership registration is taxed at the standard 0.4%. For the real estate acquisition tax, 12 million yen is first deducted from the building, and if the assessed value is lower than that it is deducted down to zero; the land uses half of the assessed value at a 3% rate, and if the land is acquired together with the home within 1 year after completion, the residential land reduction can also apply. None of these depends on owner-occupation. What the buyer needs to do is confirm the floor area and the acquisition date, and arrange a tax administrator to receive the bills.

Fixed Asset Tax and City Planning Tax: What Determines the Annual Amount?

Whoever is registered as the owner on January 1 each year pays that year’s fixed asset tax; if the transfer happens on January 2 or later, the taxpayer for that year does not change. Dividing the bill by day at handover is trade custom, not a legal rule. The fixed asset tax is levied by the municipality, and in Tokyo’s 23 wards by the Tokyo Metropolitan Government.

The standard rate is 1.4%, and municipalities may set a different rate by ordinance. No tax is levied when one person’s combined tax base within the same municipality is under 300,000 yen for land and 200,000 yen for buildings, but a municipality with special fiscal needs may levy it by ordinance. Values are reassessed every 3 years; according to the Tokyo Metropolitan Government, fiscal 2024 was the base year, and fiscal 2025 and 2026 in principle carry it over.

Residential Land Special Rule: Rental Homes Count, With Two Exceptions

Judged by land used for housing on January 1, the part up to 200 sq m per dwelling has a taxable base of 1/6 of the value for the fixed asset tax and 1/3 for the city planning tax; the part above that has 1/3 and 2/3 respectively. For apartments, the number of separate units is used, and land under rental homes is also residential land.

Two situations need attention. Land on which a building is still under construction on January 1 is in principle not residential land. If the home is left empty and poorly managed, and the municipality advises the owner under the vacant-home laws that it is a poorly managed vacant home (管理不全空家等) or a specified vacant home (特定空家等), the land is excluded from the special rule. The land also has a separate burden-adjustment measure, so rely on the bill for the actual amount.

New Home Halving: The Tax Rises Again When It Ends

For homes newly built before March 31, 2031, the fixed asset tax is halved for 3 tax years starting from the year it is first levied; for fire-resistant or quasi-fire-resistant buildings of 3 or more floors it is 5 years. A certified long-life quality home gets 5 years, or 7 years for a fire-resistant building of 3 or more floors, but a filing with documents must be made by January 31 of the year the tax first applies. The halving is limited to 120 sq m of residential floor area per dwelling, applies only to the fixed asset tax and not to the city planning tax, and the tax returns to its original level when the period ends.

The floor area condition is at least 40 sq m and at most 240 sq m; in designated urban regeneration emergency development zones within Tokyo’s special wards, it is at least 50 sq m for non-rental homes. For an apartment, the residential exclusive-use part is what is judged: the residential part must be at least 1/2 of the exclusive part, and any part used as a vacation home is not counted as residential. For a home used only on vacations, check with the local government that levies the tax how it is treated. According to the Tokyo Metropolitan Bureau of Taxation, for homes newly built on or before March 31, 2026 the requirement is at least 50 sq m and at most 280 sq m, with at least 40 sq m for the rental part.

City Planning Tax: Not Every Place Has It

The city planning tax is in principle levied only on land and buildings in urbanization promotion areas. The rate is set by municipal ordinance at up to 0.3%. Tokyo’s 23 wards charge 0.3%, levied together with the fixed asset tax. As of April 1, 2025, 639 bodies nationwide levy it, about one third of all municipalities.

Are the Rates the Same for Foreigners or Owners Living Overseas?

Yes. As of September 2026, the real estate acquisition tax, fixed asset tax and city planning tax are charged to the acquirer or owner, with no distinction by nationality or by whether you live in Japan, and the registration license tax reductions do not depend on nationality either.

The difference lies in the “live in it yourself” condition. The registration license tax reductions for buildings and mortgages, the existing home deduction, and the linked land reduction for existing homes all require owner-occupation, so an owner living overseas who buys to rent out cannot use them. A person who has moved to Japan and actually lives in the home may meet the owner-occupation condition. Which reductions apply depends on whether you live there yourself, whether the home is new or existing, and its floor area and acquisition date.

Living Overseas: Who Receives the Tax Bills?

If you have no domicile, residence or office in the municipality that levies the fixed asset tax, you must designate a tax administrator (納税管理人) to handle all tax matters for you and notify the municipality. You may also appoint someone outside the area set by ordinance who can conveniently handle the matters, in which case you must first apply for approval; changing the person also requires a procedure.

The real estate acquisition tax has the same structure, with the prefecture in place of the municipality. If an application is approved on the finding that it does not hinder tax collection, no tax administrator is needed for either tax. The provisions checked do not limit who may serve in that role.

These are local-tax procedures; income tax on rent and on sale proceeds follows separate national-tax procedures, and completing one side does not mean the other is done. See the main article for the overall cost framework.

What Happens After March 31, 2027?

As of September 30, 2026, the following reductions run only to March 31, 2027, but each is judged by a different date:

• Real estate acquisition tax: the 3% rate on land and homes and the halving of residential land are judged by the acquisition date.
• Registration license tax: the 0.15% and 0.3% for buildings and the 0.1% for mortgages are judged by the date of new construction or acquisition, and registration must be made within 1 year.
• Stamp duty: the reduced amount for sale contracts is judged by the date the contract is drawn up.

Two have later deadlines: the 1.5% for land transfer registration runs to March 31, 2029 and is judged by the registration date, and the new-home halving of the fixed asset tax applies to homes newly built before March 31, 2031.

In its fiscal 2027 tax reform requests, the Ministry of Land, Infrastructure, Transport and Tourism asked to extend the 3% real estate acquisition tax rate and the halving of residential land by 3 years each, to March 31, 2030, and to extend the burden-adjustment measures for the land fixed asset tax and city planning tax and the ordinance-based reduction system to the same date. According to materials from the Ministry of Internal Affairs and Communications as of August 31, 2026, these are only requests, still under study and not decided. The same set of requests also mentions studying how to curb speculative transactions not driven by real demand, in response to rising prices of new apartments, without specifying which tax or measure would be used.

Whether the registration license tax and stamp duty reductions will be extended depends on later tax reform. If your acquisition or registration date is close to March 31, 2027, confirm at signing on which day handover and registration will fall.

What Documents to Obtain Before Signing

1. Fixed asset valuation certificate: the assessed value of the land and the building separately; for an existing home, the completion date is also based on this document.
2. Floor area: the registration license tax owner-occupation reduction is judged by whether the residential floor area is at least 50 sq m; the new-home benefits under the real estate acquisition tax and fixed asset tax are judged by whether it falls between 40 and 240 sq m.
3. Completion date and earthquake-resistance documents: for a building completed before January 1, 1982, applying the real estate acquisition tax existing home deduction requires one of the three proof documents described above; the registration license tax reduction requires meeting the earthquake-resistance standard.
4. Structure and certification: whether it is a fire-resistant or quasi-fire-resistant building of 3 or more floors, and whether it is a certified long-life quality home; this changes the number of years of fixed asset tax halving.
5. Planned acquisition and registration dates: compare against March 31, 2027 and March 31, 2029.
6. Documents needed only for owner-occupation: the certificate of residential house attached to the registration application, and the certificate of residence attached to the real estate acquisition tax filing.
7. Tax administrator: if you live overseas, who will receive the bills and pay the tax for you.

**Example:** A person who has moved to Japan buys a 1990-built existing apartment to live in, with an exclusive area between 50 and 240 sq m, acquired before March 31, 2027. For the registration license tax, as long as the certificate of residential house is attached to the registration application and registration is made within 1 year of acquisition, the building transfer qualifies for 0.3% and the land share for 1.5%. For the real estate acquisition tax, 1990 falls in the April 1, 1989 to March 31, 1997 band, so 10 million yen is deducted from the building; being built after 1982, no separate earthquake-resistance proof is needed; the home qualifies for the existing home deduction, so the land can also use the residential land reduction. What this person needs to do is prepare the certificate of residence for the filing; if the same person had bought to rent out, neither of these two deductions would apply.

Statements to Treat With Care

• “Just budget a few percent of the price for taxes”: the registration license tax and real estate acquisition tax are both calculated on the assessed value and cannot simply be calculated from the purchase price.
• “The real estate acquisition tax was already paid at handover”: what is paid at handover and registration is the registration license tax; the real estate acquisition tax waits for the bill from the prefecture.
• “Foreigners pay higher rates”: as of September 2026, the rates of the three taxes do not differ by nationality; the difference is the owner-occupation condition.
• “Buying to rent out can also use the 0.3%”: the 0.3% for building transfer requires owner-occupation; without it the rate is 2%.
• “Existing apartments can also deduct 12 million yen”: the existing home deduction requires owner-occupation and earthquake-resistance conditions, and the amount depends on the completion date.
• “A small studio can use the new-home benefits”: a home with exclusive area under 40 sq m cannot use the new-home halving of the fixed asset tax; the real estate acquisition tax deduction is judged on an area that includes the allocated common parts, and an area under 40 sq m also cannot use it. When the exclusive area is close to 40 sq m, confirm the area actually used for the determination.
• “The mortgage contract’s stamp duty is also reduced”: as of September 2026, the stamp duty reduction applies only to real estate sale contracts; a paper mortgage loan contract is still taxed at the standard amount, and a contract signed electronically is not a taxable document according to the National Tax Agency’s view.
• “It will be extended automatically after 2027”: an extension is only a request and has not been decided.

How to Decide the Next Step

Once you have the valuation certificate and have confirmed the floor area and completion date, compare against the table above to see whether you fall under the standard or the reduced rate. If you are unsure how owner-occupation is determined, how the area is calculated, or whether the acquisition date falls before or after a deadline, confirm with a judicial scrivener (司法書士) or with the municipal or prefectural tax office for the property’s location before signing.

If you are still deciding whether to buy property in Japan and want to see how brokerage fees, monthly holding costs and the taxes on renting out and selling fit together, return to the main article for the full cost framework.

Registration License Tax, Real Estate Acquisition Tax and Fixed Asset Tax FAQ

Can I estimate the registration license tax and real estate acquisition tax from the purchase price when buying a home in Japan?

No. Both are calculated on the registered value in the fixed asset tax ledger; for a new building without a registered value, the registrar or the prefecture determines it respectively. Before signing, ask the seller or broker for the fixed asset valuation certificate and estimate from it.

How are the fixed asset tax and real estate acquisition tax handled if the owner lives overseas?

If you have no domicile in the taxing area, you must designate a tax administrator. The fixed asset tax is handled with the municipality and the real estate acquisition tax with the prefecture; it can be waived where it is determined not to hinder collection. Income tax filings follow separate national-tax procedures.

If I acquire after March 31, 2027, will the real estate acquisition tax still be 3%?

This is not yet certain. The Ministry of Land, Infrastructure, Transport and Tourism has requested extending the 3% rate and the residential land halving to March 31, 2030; according to materials as of August 31, 2026, this is still under study and not decided, so rely on later tax reform.

Glossary

• Fixed asset assessed value (固定資産評価額): the value registered in the fixed asset tax ledger, which is the calculation base for these taxes.
• Taxable base (課税標準額): the amount, after halving and deductions, that is multiplied by the tax rate.
• Certificate of residential house (住宅用家屋証明): a document in which the municipality certifies that the home is an individual’s own residence; it must be attached to the registration application to apply the registration license tax reduction.
• Certified long-life quality home (認定長期優良住宅): a certified long-life quality home, with a larger real estate acquisition tax deduction and more years of fixed asset tax halving.
• Tax administrator (納税管理人): a person who handles tax matters for a taxpayer who has no domicile in the taxing area.

About the Data

• Information in this article was checked on September 30, 2026, against Japanese laws and the official documents of the National Tax Agency, the Ministry of Internal Affairs and Communications and the Tokyo Metropolitan Bureau of Taxation. The Japanese originals are rendered in English here, and English names are translations.
• The following conclusions are drawn from official documents, and no official document states them in a single sentence:
  • That a person who does not live in the home cannot use the registration license tax housing reduction, the existing home deduction or its land reduction is inferred from the owner-occupation requirement in the provisions; municipal practice on what counts as “living there” was not checked, and how an owner living overseas would prove owner-occupation was not found.
  • That the three local taxes make no distinction by nationality or residence is inferred from the taxable-object provisions checked containing no such distinction; local ordinances were not checked one by one.
  • That mortgage loan contracts are outside the stamp duty reduction is inferred from the list of reduced items; that electronic contracts are not subject to stamp duty comes from a general National Tax Agency example, which is not a real estate contract.
• The filing deadline, bill delivery and payment method for the real estate acquisition tax, the “within 3 years” for the residential land reduction, and the floor area requirement for the new-home fixed asset tax halving before March 31, 2026 are taken from the Tokyo Metropolitan Bureau of Taxation; the “within 3 years” differs from the 2 years in the main text of the Local Tax Act, and the old and new area boundary appears only in Tokyo’s charts, so other places may differ.
• The Ministry of Land, Infrastructure, Transport and Tourism’s fiscal 2027 tax reform requests (Ministry of Internal Affairs and Communications materials as of August 31, 2026) are still under study and may change; no request was found on whether the registration license tax and stamp duty reductions expiring March 31, 2027 will be extended.

Have a question about this guide? Leave a comment below, or ask Zagdim directly.

Sources

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Important Notice

This article is a general information summary and is not individual tax or legal advice. The information was checked on September 30, 2026. Tax rates, deadlines and rules may be updated; rely on the current notices of the competent Japanese authorities and, where needed, consult a qualified tax accountant (税理士), judicial scrivener or other professional.