Japan property tax for foreigners: what you pay every year

Key points

• No extra tax for foreigners. Japan's annual property taxes are the same for every owner, whatever their nationality or residence.
• Fixed asset tax (固定資産税) is 1.4% (the standard rate; a municipality may set a higher one) and city planning tax (都市計画税) is up to 0.3%, charged only inside urbanisation zones.
• Both are charged on the assessed value on the municipal tax register (固定資産税評価額), which is usually well below the price you paid. Land is assessed at around 70% of the official land price.
• Land under a home gets a big cut: the first 200 ㎡ per dwelling is taxed on 1/6 of its value (1/3 for city planning tax). New homes get half off the building tax for 3 years (5 years for 3+ storey fire-resistant buildings such as most condos).
• A holiday home is not "housing" for these taxes. Its land loses the 1/6 relief, so the land tax can be several times higher than for the same flat rented to a tenant.
• Whoever owns the property on 1 January pays for the whole year. In Tokyo's 23 wards the bill is paid in four instalments: June, September, December and February.

The two annual taxes

The 1.4% is the standard rate in the Local Tax Act; a few municipalities charge more. City planning tax is capped at 0.3% and some towns charge less or none at all, which matters for rural and resort areas. Check the rate on the municipality's own tax page, or ask for the seller's latest tax bill.

The tax is charged to whoever is registered as owner on 1 January. If you buy in March, the seller receives that year's bill; in practice the contract usually splits it by days and you pay the seller your share at closing. That split is a custom, not a legal rule, so check the contract.

There is also a small-amount exemption: if your total taxable value in one municipality is under ¥300,000 for land or ¥200,000 for buildings, no fixed asset tax (and no city planning tax) is charged. Tokyo lists these figures for FY2026; MIC's FY2026 reform notice raises the building threshold to ¥300,000 from FY2027.

Assessed value, not the price

Both taxes are charged on the value on the municipal register, set under the national valuation standards. It is reviewed every three years; the current base year is FY2024, so values stay the same for FY2025 and FY2026 unless the building is new or altered. The next revaluation is FY2027.

• Land is valued at about 70% of the official land price (地価公示価格), a target MIC has used since FY1994. In hot markets, such as central Tokyo or Niseko, sale prices can be far above the official land price, so the assessed value can be a small fraction of what you paid. See official land prices by area.
• Buildings are valued at replacement cost less depreciation. There is no official ratio to the price; a common rule of thumb is that a new building is assessed at about half to two-thirds of its construction cost, falling with age.
• Land tax rises gradually. Under the burden-adjustment rules (負担調整措置), the taxable value of land is phased up slowly when values rise, so the real base can be below the formula figures on this page.

The only exact figure is the one on the tax register. Before buying, ask the broker for the seller's tax certificate (公課証明書 or 評価証明書); our tax calculator accepts the real numbers.

Reliefs for homes and new buildings

Land under a home (住宅用地の特例)

For a condo the land is shared, and each flat counts as a dwelling, so almost all condo land falls in the 1/6 band. In Tokyo's 23 wards the city planning tax on small residential land is halved again for FY2026 by Tokyo ordinance (reviewed every year).

A rental flat let to a long-term tenant is still "housing", so it keeps the relief. A house left empty and neglected can lose it if the municipality issues a formal recommendation under the Vacant Houses Act; see the akiya tax trap.

New homes (新築住宅の減額)

For a newly built home, fixed asset tax on the building is halved for the first 3 years, or 5 years for buildings of 3 or more storeys that are fire-resistant or quasi-fire-resistant (most condos). The cut applies to up to 120 ㎡ of living space per dwelling and needs the floor area to fall within the limits (40–240 ㎡ under the FY2026 reform, which extended the measure to homes built by 31 March 2031). Holiday homes are excluded.

Why holiday homes pay more

Under the Local Tax Act Enforcement Order, a holiday home (別荘), meaning a dwelling used only for recreation rather than daily life, is not treated as housing. Its land gets no 1/6 or 1/3 relief and its building gets no new-home reduction. This is the main reason ski chalets and resort condos often have much higher annual bills than city flats of similar value.

Whether your property is a holiday home is decided by the municipality on the facts (who lives there, how often it is used, whether it is rented out). The rules for a ski condo let to tourists through a rental pool differ by town; ask the municipality's tax office or a tax accountant before you assume either way. Local guides: Niseko, Hakuba, Furano.

Worked examples

A used condo with an assumed assessed value of ¥10 million for the land share (under 200 ㎡ per dwelling) and ¥15 million for the building, in an area with 1.4% fixed asset tax and 0.3% city planning tax. These are illustrations of the formula, not quotes; the burden-adjustment rules can make the land part lower.

In Tokyo's 23 wards the land city planning tax in the first column would be halved (¥5,000). If the building were new, the building's fixed asset tax would be halved on up to 120 ㎡ for 5 years (as a home or rental, not as a holiday home). For a detached house with a large plot the land share is bigger, and so is the difference between the two columns.

To run your own numbers, including purchase taxes and sale tax, use the Japan property tax & cost calculator. For what the property itself costs, see Tokyo prices or all Japan house prices.

Paying from abroad

• Name a tax representative. If you do not live in Japan, the municipality will want a person or company in Japan to receive the bill and pay it for you (a tax representative, 納税管理人). Each municipality has its own form; your broker, property manager or tax accountant usually takes this on. For income tax on rent or a sale, a separate notice is filed with the tax office (NTA form linked below).
• Instalments. In Tokyo's 23 wards the bill is sent in June and paid in four instalments (June, September, December, February), or all at once. Other municipalities set their own dates; check the bill.
• Late payment brings late-payment charges, so make sure the bill reaches someone.
• For the full yearly to-do list for a non-resident owner (tax, insurance, reports), see the 2026 owner checklist.

Other taxes owners meet

• At purchase: real estate acquisition tax, registration tax and stamp duty, plus the broker's fee. See the full cost of buying property in Japan.
• If you rent it out: a business tenant or rental operator must withhold 20.42% of the rent paid to a non-resident owner; you then file a Japanese return. See management fees and net income.
• When you sell: tax on the gain (rate depends on holding more than five years as of 1 January of the year of sale), and usually 10.21% withheld from the price by the buyer. See the sale net proceeds calculator.
• Local extras: some municipalities levy, or plan, their own taxes on holiday or vacant homes. Check with the municipality before buying.

FAQ

Sources

1. Tokyo Metropolitan Bureau of Taxation, fixed asset tax and city planning tax (rates 1.4% / 0.3%, 1 January owner, residential land 1/6 and 1/3, new-home reduction, exemption thresholds, FY2024 base year, instalments, FY2026 23-ward halving): tax.metro.tokyo.lg.jp (checked 2 October 2026)
2. Local Tax Act (地方税法), Articles 349-3-2 (residential land), 350 (standard rate), 702-3 and 702-4 (city planning tax): e-Gov law search; Local Tax Act Enforcement Order (holiday homes not "housing"): e-Gov
3. Ministry of Internal Affairs and Communications (MIC/総務省), land valuation at about 70% of official land prices: soumu.go.jp PDF; FY2026 local tax reform notice: soumu.go.jp PDF; city planning tax: soumu.go.jp
4. MLIT, FY2026 tax reform for housing (new-home reduction extended): mlit.go.jp PDF
5. National Tax Agency, tax representative notice for income tax: nta.go.jp; non-resident rent withholding: No.2880