Who Must Pay Japan’s Fixed Asset Tax, and When

Owning property in Japan comes with an annual local tax bill, and the rules for who owes it, how much, and when can catch overseas owners off guard. This article explains Japan’s fixed asset tax (固定資産税): who is legally responsible for paying it, how the taxable base is calculated, when notices are sent, and why a property owner might not receive a tax bill in a given year.

**Example (hypothetical)**: An owner living abroad holds an apartment in Tokyo’s 23 wards. The sections below use this owner’s situation to show how the rules apply in practice.

Who Levies Fixed Asset Tax, and Who Has to Pay It?

Fixed asset tax is levied by the municipality where the property is located. Tokyo’s 23 wards are a special case: there, the tax is levied by the Tokyo Metropolitan Government rather than by each ward.

The person who owes the tax is whoever is registered as the owner on the Fixed Asset Tax Register (固定資産課税台帳) as of January 1 each year.

• Taxpayer (納税義務人): the person legally obligated to pay this tax.
• Fixed Asset Tax Register (固定資産課税台帳): the municipality’s record of taxable assets and their owners.

Specifically, who counts as “the owner” on the register is determined as follows:

• Land: the owner named in the registry record or the supplementary land taxation register.
• Buildings: the owner named in the registry record or the supplementary building taxation register.

The registry record is the official record of real estate ownership. So, as a general rule, whoever the property is registered to is who pays the tax.

An exception applies if the registered owner died before January 1. In that case, whoever actually owns the land or building as of January 1 owes the tax. That person may also need to file a “current owner declaration,” a document notifying the government of who now owns the property.

If a family member’s property in Japan changes hands under these circumstances before the start of the year, whoever actually owns it should be aware of this filing requirement.

**Example**: The apartment is registered in the owner’s own name. As long as that owner is the one listed on the register as of January 1, that owner is the one who owes the tax for that year.

What Is the Tax Rate, and How Is the Taxable Base Calculated?

The tax rate in Tokyo’s 23 wards is 1.4%. This rate does not automatically apply in other municipalities.

The “taxable base amount” used to calculate the tax is not the market value or the sale price of the property.

In Tokyo, if land is classified as “residential land” (住宅用地), the taxable base is calculated according to the table below:

• The classification is based on the property’s status as of January 1 each year.
• For land used purely for residential purposes, the area counted is capped at 10 times the floor area of the building standing on it.

This is based on Tokyo Metropolitan Government data. Both categories first require the land to qualify as residential land. These ratios apply only to fixed asset tax; city planning tax uses its own calculation, covered in a separate article on the city planning tax.

**Example**: The land under the apartment must first be classified as residential land as of January 1 before these ratios can apply.

When Are Tax Bills Sent, and How Many Installments Are There?

For Tokyo’s 23 wards, the fiscal year 2026 tax notice was sent on June 1, 2026, payable in four installments. The same notice covers both fixed asset tax and city planning tax together.

These four dates apply only to the fiscal year 2026 notice for Tokyo’s 23 wards and should not be assumed to repeat on the same dates every year.

Why Might an Owner Not Receive a Tax Bill?

In Tokyo’s 23 wards, an owner who holds property but does not receive a tax bill for a particular asset may fall into one of two situations.

Reason one: the property was acquired on or after January 2

• Tokyo’s 23 wards use January 1 as the “base assessment date” (賦課基準日), the date that determines who owes tax for that fiscal year.
• An asset acquired on or after January 2 will not generate a tax bill for that fiscal year.
• The taxpayer for that year remains whoever was registered as the owner on the register as of January 1.

Reason two: the amount falls below the exemption threshold

When the taxable base amounts for all assets held by the same person within the same ward are added together:

• If the combined taxable base for land is under JPY 300,000, no fixed asset tax is levied on the land.
• If the combined taxable base for buildings is under JPY 200,000, no fixed asset tax is levied on the buildings.

These thresholds apply to the taxable base amount, not the market value or sale price, and land and buildings are counted separately.

**Example**: If the apartment was purchased on or after January 2, no tax bill for that apartment would be issued for that fiscal year. The taxpayer for that year is whoever was listed on the register as of January 1.

For how an owner living overseas receives tax notices and arranges payment, see the separate article on receiving Japan property tax bills from abroad. For the full list of annual costs of owning property in Japan, see the separate article on annual holding costs.

Frequently Asked Questions

Is the fixed asset tax rate always 1.4%?
In Tokyo’s 23 wards, yes, the rate is 1.4%. This rate does not automatically apply in other municipalities.

When is fixed asset tax due in Tokyo’s 23 wards?
The fiscal year 2026 notice was sent on June 1, 2026, payable in four installments, with the final installment due March 1, 2027.

If a property is bought on or after January 2, will a tax bill arrive that year?
Not in Tokyo’s 23 wards, because January 1 is the base assessment date for that fiscal year.

Does an owner living overseas still have to pay fixed asset tax?
Whether tax is owed depends on whether the owner is listed on the Fixed Asset Tax Register as of January 1, regardless of where the owner lives. See the separate article on receiving Japan property tax bills from abroad for how notices and payment are handled overseas.

Glossary

• Fixed asset tax (固定資産税): an annual tax levied by Japanese local governments based on the assessed value of land, buildings, and depreciable assets held by their owner as of January 1 each year.
• Fixed Asset Tax Register (固定資産課税台帳): whoever is listed as the owner of land, a building, or depreciable assets on this register as of January 1 is the fixed asset taxpayer.
• Taxable base amount (課税標準額): the figure Tokyo’s 23 wards use to determine whether a property falls under the exemption threshold; it is not the market value or sale price.
• Base assessment date (賦課基準日): the date that determines who owes tax for a given fiscal year; in Tokyo’s 23 wards this is January 1.
• Residential land (住宅用地): classified by the Tokyo Metropolitan Government based on the property’s status as of January 1 each year; for land used purely for residential purposes, the area counted is capped at 10 times the floor area of the building on it.
• Small-scale residential land (小規模住宅用地): residential land of up to 200 square meters per dwelling.
• General residential land (一般住宅用地): the portion of residential land per dwelling that exceeds 200 square meters while still qualifying as residential land.

Data Notes

Verified by Zagdim as of October 21, 2026. The rate, taxpayer rules, notice dispatch date, four-installment deadlines, and exemption thresholds for Tokyo’s 23 wards in this article are drawn from the official pages of the Tokyo Metropolitan Government’s Bureau of Taxation. The residential-land taxable-base reduction is as published by the Tokyo Metropolitan Government; rates and taxable-base calculations in other municipalities cannot be assumed to be the same. The statement that “whoever the property is registered to generally pays the tax” is derived from the register and registry record rules; it is not stated in those exact words on the official pages. The rule that an asset acquired on or after January 2 does not generate a tax bill for that fiscal year follows from the January 1 base assessment date; how buyer and seller might apportion the tax between themselves at the time of sale is a separate matter not covered by this rule and not addressed in this article. This article does not cover taxable-base calculations outside the residential-land reduction, the taxable base for depreciable assets, reductions and filing procedures, or the dispatch date and installment deadlines for fiscal year 2027. The owner example used throughout is hypothetical and illustrates only how the rules apply.

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

Sources

Tokyo Metropolitan Government Bureau of Taxation — Fixed Asset Tax and City Planning Tax (Land and Buildings)

Important Notice

This article is general information and is not tax or legal advice for any individual case. Information verified as of October 21, 2026. Rules in Japan may change; consult the current announcements of the relevant authorities and a qualified professional for your own situation.