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When do Japan homeowners pay property taxes?

By on November 15, 2021

A property tax is levied on homeowners regardless of which country you live in. Japan is no different.

Property tax is made on a recurrent basis for a real estate property you own, also known as “fixed assets” (kotei shisanzei).

In Japan, assessment of property tax on fixed assets starts every January 1st of each year calculated according to the asset value in the municipality where the property is located.

WHEN TO PAY PROPERTY TAX IN JAPAN

Payment deadline dates vary depending on the region, so please contact your municipality where you live.

A notice of payment is mailed to Tokyo (23 wards) taxpayers which is paid four times a year: in June (1st term), September (2nd term), December (3rd term), and February (4th term).

HOW DO YOU GET THE NOTICE OF PAYMENT?

The property tax payment notice is mailed out to your address (23 wards of Tokyo) every year.  It contains a Tax payment notice, a payment slip for lump sum payment and 4 payment slips for 4 terms.

There are deadline dates indicated for paying in installment except for  lump sum payment. However, you might want to check with your municipality when charges for late payment apply as grace periods vary according to municipality.

HOW IS PROPERTY TAX CALCULATED?

The calculation of property tax in all 23 wards of Tokyo depends on the assessed value. The assessed value depends on: construction cost and the method by which the house was constructed. Write offs from depreciation are adjusted depending on how long ago was the house built. Scores are then assigned in each situation and then calculated using the following appraisal formula.

Appraised value (price) of the house = Reconstruction cost score per unit x Age of property and adjustment x Floor area x Price per score

Although old houses generally have lower assessed value, the land on which the property is built doesn’t go any cheaper than the prevailing local real estate market conditions.

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