Types of taxes in Japan
A directory of the personal taxes you may meet: income, resident, consumption, enterprise, property, gift, inheritance, and more.
Beyond income and resident tax, you may encounter consumption tax, individual enterprise tax, fixed-asset and city-planning taxes, real-estate acquisition tax, registration and stamp taxes, automobile taxes, and gift or inheritance tax — each with its own trigger and authority.
Effective: 2026-01-01 to 2026-12-31
Professional review pending — treat as draft and confirm with the authorities.
Key points
- National: income tax, consumption tax, registration/stamp tax, gift and inheritance tax.
- Local: resident tax, enterprise tax, fixed-asset and city-planning tax, real-estate acquisition tax.
- Which office handles a problem depends on which tax it is — national tax office vs municipality vs prefecture.
- Individual enterprise tax applies only to designated business classes, after a ~¥2.9M owner allowance.
National taxes
The National Tax Agency administers national income tax and the 2.1% reconstruction surtax, consumption tax on taxable business supplies, registration and license tax on registrations (including real-estate titles), stamp tax on specified paper instruments, and gift and inheritance tax. These are billed and paid to the national system, and disputes go to the national tax office (税務署).
Local taxes
Your prefecture and municipality assess resident tax (income portion ~10% plus per-capita amounts), individual enterprise tax on designated business classes (business-owner allowance generally ¥2.9 million per full year; rates commonly 3%, 4%, or 5%), fixed-asset and city-planning taxes on land, buildings, and depreciable assets, and real-estate acquisition tax when you acquire property. A wrong resident-tax notice is fixed by the municipality, not the national tax office.
Automobiles, gifts, and estates
Owning a vehicle brings automobile-related taxes (ownership, weight, environmental classification). Receiving gifts above the ¥1.1 million annual exemption can trigger gift tax; inheriting an estate above the basic exemption (¥30 million + ¥6 million per statutory heir) can trigger inheritance tax, with a ten-month filing deadline. These are fact-heavy areas where a professional is often warranted.
Who this is for
- People mapping which taxes could apply to them
- Homeowners, business owners, and families
What this is not
- Corporate tax planning
- Exact municipal rates and reliefs
- Municipal rates, temporary reliefs, and property-tax dates vary; confirm locally for your address and transaction date.
Frequently asked questions
Why did I get a big resident tax bill in my second year?
Resident tax (住民税, about 10%) is charged the year after the income is earned, based on the previous year’s income. So in your first year you often pay little, and in your second year you get a bill for your full first-year income. The same lag means people who stop working or leave Japan can still owe resident tax afterward. Budget for it in advance.