Fixed-asset and city-planning taxes
Assessment, annual liability, notices, payment schedules, and the ownership date.
Fixed-asset tax (and city-planning tax in urbanization areas) is an annual municipal tax on land, buildings, and depreciable assets, based on the January-1 owner and the assessed value — billed with payment slips, usually in several installments.
Effective: 2026-01-01 to 2026-12-31
Professional review pending — treat as draft and confirm with the authorities.
Key points
- Annual municipal tax on land, buildings, and depreciable assets.
- Based on the January-1 owner and the assessed value.
- City-planning tax adds in urbanization-promotion areas.
- Paid in installments on a municipal schedule.
Assessment and billing
The municipality assesses your land and buildings and bills fixed-asset tax each year; in urbanization-promotion areas it adds city-planning tax. The person who owns the property on January 1 is liable for that year, regardless of a later sale, and the tax is paid in several installments per the local schedule. Residential land and new homes often receive reductions.
Local variation
Assessed values are reviewed periodically, and rates, reductions, and payment dates vary by municipality. When you buy or sell, the parties often prorate the year’s tax between them by contract even though the January-1 owner is legally liable. Check your assessment notice and raise errors with the municipality.
Who this is for
- Property owners
- Buyers estimating carrying costs
What this is not
- National tax questions
- The January-1 owner is legally liable even if the property is sold that year; proration is by contract.
Frequently asked questions
Do I need to file a tax return in Japan?
Many employees do not, because tax is settled by year-end adjustment (年末調整). You generally must file (確定申告) if you have side income over ¥200,000, two or more employers, self-employment income, sizeable investment or crypto gains, or you want to claim deductions like large medical costs or a first-year mortgage credit. Filing season is Feb 16 – Mar 15 via e-Tax. When unsure, check the NTA guidance or ask a 税理士.