Tax is imposed on those who acquired real estate such as through purchases of land and buildings or through construction of a residence/building, regardless of whether the property is registered or not. However, for the acquisition through inheritance, etc., the tax is not imposed in certain cases.
Taxpayers
Those who have acquired land or buildings (regardless of individuals or corporations) by purchase, gift, exchange, or construction (new construction, enlargement of buildings, and remodeling) regardless of whether the acquisition was a paid or gratuitous acquisition, or whether or not it was registered.
Tax payment
Assessed value of acquired real estate (standard taxable value)*1 × Tax rate*2
*1 For housing land, etc. (housing land or evaluated housing land) acquired on or before March 31, 2024 (R6), the standard taxable value of housing land is the acquisition price × 1/2.
*2 Tax rates are as shown in the following table.
| Date of Acquisition | Land | Building (Residence) | Building (Non-residence) |
| From April 1, 2008 (H20) to March 31, 2024 (R6) | 3/100 | 3/100 | 4/100 |
Due Date and Procedures for Tax Payment
Tax Notice is sent from the Metropolitan Taxation Office/Island Branch Office. The tax shall be paid by the due date mentioned in the Tax Notice.
Value of Acquired Real Estate
The value of the acquired real estate is imposed and determined based on the Standard Valuation Code of Fixed Assets, which was established by the Minister for Internal Affairs and Communications. The assessed values are basically equivalent to the registered prices in the fixed assets tax ledger, with the exception of newly constructed residences/buildings, etc. In addition, when land and/or buildings are received as gifts or acquired by exchange, the values are equivalent to the registered prices in the fixed assets tax ledger.
Tax Exemption Limit
Where the standard taxable value is less than the following amounts, real estate acquisition tax is not imposed.
Land：¥100,000
Buildings：¥230,000（New/extension/renovation）、¥120,000（Others (sale, etc.)）
Notification of the Acquisition of Real Property
Submit notification to the competent Metropolitan Taxation Office (or branch office/island branch office) having jurisdiction over the area, where the land/buildings are located, within 30 days from the date of acquisition. Notification is also required for acquisition of unregistered assets. However, in cases where registration has been applied for within 30 days from the date of real estate acquisition, notification is not required in principle.
Tax Deduction for Residential Building Acquisition
1.Newly Built Residential Buildings (Including Extended and Renovated Residential Buildings)
Requirements
A certain amount is deducted from the assessed value of residential buildings if the floor area*1 of the buildings meet the requirement below.
| Lower limit | Upper limit | ||
| Detached house | Houses other than detached houses*2 | Upper limit | |
| Houses other than the ones for rent | 50 ㎡ or more | 50 ㎡ or more | 240 ㎡ or less |
| Houses for rent | 50 ㎡ or more | 40 ㎡ or more | 240 ㎡ or less |
*1 The floor area in the present circumstances, which may differ from the registered floor area, is used for assessment. The floor space of condominiums, etc., includes the floor area of the common space divided proportionally in accordance with the floor area of the private space.
*2 Houses other than detached houses refer to condominiums, etc. with sectional ownership or apartments, etc. with structurally independent lot. The assessment of the requirements of floor space is conducted for each independent lot.
Deduction
¥12,000,000*3 (For buildings valued at less than ¥12,000,000, the deduction is equal to the value.)
*3 For houses other than detached houses, the deduction applies to each independent lot. For new residential buildings meeting the criteria for long-term quality housing, which is stipulated in the Act on the Promotion of Diffusing Long-term Quality Housing, the deduction amount is ¥13,000,000. (This provision applies only to the buildings that were/will be acquired on or before March 31, 2024 (R6))
Calculation of tax amount
{(Assessed value of residential buildings) − (Deduction)} × Tax rate 3% = Tax amount
2.Used Residential Buildings
Requirements
A certain amount is deducted from the assessed value of residential buildings, which meet all of the following requirements (A through C).
| Requirements | Details | |
| (A) Residential requirement (Note) It is necessary that the state of the building at time of acquisition was “residence”. | Residential building that was acquired by the owner as his or her own personal residence. (If a building designed for non-residential use is to be remodeled for residential use, the said remodeling work must be completed prior to the acquisition.) | |
| (B) Floor area requirement | 50㎡ to 240㎡ (Assessment of floor area requirement is to be identical to that of the “Case of Newly Built Residential Buildings.”) | |
| (C) Earthquake-proofing standard requirement*1 | Building newly built on or after January 1, 1982 (S57) | Residential building that has been certified as the one meeting new earthquake-proofing standards in an earthquake-resistance inspection conducted by an architect or other expert (said inspection for certification must have been completed within two years prior to the date of acquisition of the residence) among the buildings that do not meet the structural requirement stated in the left column. |
*1 Even if a used residential building (limited to residential buildings acquired on or after April 1, 2014 (H26)) does not meet the requirements stated in (C) above, a certain amount may be deducted from the tax amount on the residential building in case that the seismic retrofitting is conducted within six months of acquisition, the certification that the building meets new earthquake-proofing standards is obtained, the building is used for resident and such retrofitting is completed before residential use commencement. The premises may also be eligible to receive a reduction of taxes (limited to premises acquired on or after April 1, 2018 (H30)). For details, please consult the Metropolitan Taxation Office (or island branch office) where the building is located.
Deduction
| Date of Construction | Deduction | Date of Construction | Deduction |
| Jul. 1, 1954 (S29) to Dec. 31, 1963 (S38)*2 | ¥1,000,000 | Jul. 1, 1981 (S56) to Jun. 30, 1985 (S60)*2 | ¥4,200,000 |
| Jan. 1, 1964 (S39) to Dec. 31, 1972 (S47)*2 | ¥1,500,000 | Jul. 1, 1985 (S60) to Mar. 31, 1989 (H1) | ¥4,500,000 |
| Jan. 1, 1973 (S48) to Dec. 31, 1975 (S50)*2 | ¥2,300,000 | Apr. 1, 1989 (H1) to Mar. 31, 1997 (H9) | ¥10,000,000 |
| Jan. 1, 1976 (S51) to Jun. 30, 1981 (S56)*2 | ¥3,500,000 | Apr. 1, 1997 (H9) or later | ¥12,000,000 |
*2 For used residential buildings newly built on or before December 31, 1981 (S56), only buildings that have been certified as meeting new earthquake-proofing standards are eligible. For details, see the requirements stated in (C) above.
Calculation of tax amount
(Assessed value of residential buildings − Deduction)*3 × Tax rate 3% = Tax amount
*3 If you acquire equity interest in the house, the amount would be amount of price and deduction of the house multiplied by such equity interest.
Reduction/Exemption on Real Estate Acquisition Tax relating to the New Construction of Tokyo Zero Emission Houses (Buildings)
The real estate acquisition tax applied to newly constructed Tokyo Zero Emission Houses* satisfying the following conditions is reduced or exempted.
* Limited to houses included in the subsidy targets described in the Subsidy Allocation Guidelines for Project to Promote Introduction of Tokyo Zero Emission Houses.
| Requirements for obtaining reduction/exemption | ・Applications must have been made between April 1, 2022 (R4) and March 31, 2025 (R7) for confirmation of the design based on the “Guidelines relating to the Certification of Tokyo Zero Emission Houses”. ・Either of the following items (1) or (2) must apply. (1) A solar power generation system*1 with the power generation output of less than 50 kW must be installed. (2) The Level 2 or Level 3 standards*2 must be satisfied. ・For new construction, the initial real estate acquisition tax must be taken as the taxation subject. ・Applications for tax reduction/exemption must have been submitted together with the necessary documents including the Tokyo Zero Emission House Certificate and the Design Confirmation Document for Tokyo Zero Emission Houses. |
| Tax reduction/exemption rates | When items (1) or (2) are satisfied, 50% of the real estate acquisition tax pertaining to the house will be reduced. (When both items (1) and (2) are satisfied, 100% of the real estate acquisition tax is exempted.) |
*1 Limited to systems which comply with the standards in Item 4 of the Tokyo Zero Emission House Guidelines and that are described in a Tokyo Zero Emission House Certificate.
*2 Refer to the Level 2 or Level 3 which is stipulated in Item 3 of the Tokyo Zero Emission House Guidelines.
Reduction for Residential Land Acquisition
Where a residential building site subject to the section “Tax Deduction for Residential Building Acquisition” are acquired, a certain amount is deducted from the land tax if any of the following requirements are met.
【Acquisition of land for new residential building】
| Category | Requirements |
| Acquisition of land before the construction of residential building | The new house must be built on the land within three years* of acquiring the land (provided that (1) the acquisitor of the land continues to own the land until the construction of the new house and, (2) the person having acquired the land from the acquisitor of the land (the counterpart of the transfer) builds a new house.) |
| Acquisition of land after the construction of residential building | (A) Those who built a new residential building on the leased land acquire that land within one year from the construction of the residential building. (B) Those who acquired new and not-used residential building and its site within one year from the day of the construction of the residential building (including simultaneous land/house acquisition). |
*For land which was/will be acquired on or before March 31, 2024 (R6), in the case where it is difficult to build a new house within three years since the land acquisition, the tax can be reduced within four years since its acquisition when found to be in compliance with the requirements designated by the ordinance (For apartment houses, etc. with 100 or more units in one building, where it is deemed to take more than three years for new construction due to unavoidable circumstances).
【Acquisition of the land for used residential building】
| Category | Requirements |
| Acquisition of land prior to residential building | Individuals, who purchase the land, acquire the residential building on the land within one year of the land purchase (including simultaneous land/residential building acquisition) |
| Acquisition of land after residential building | Individuals, who leased the land to acquire the residential building, acquired the land within one year of the acquisition of residential building |
【Tax reduction】
Following amount of either (A) or (B), whichever is larger, can be reduced.
（A）¥45,000 (For amounts of less than ¥45,000, the deduction is equal to the amount.)
（B)Assessed value of land per 1 ㎡* × Twice the floor area of a residential building (up to 200 ㎡ per house) × Tax rate 3%
∗ For acquisition of residential land or the like (residential land or land assessed as residential land) not later than March 31, 2024 (R6), the assessed value of land per ㎡ is calculated based on the 1/2 of the assessed value.
(Note) If you are acquiring equity interest in the house, the amount would be the product of the amount obtained in (B) above with the amount of equity interest.
Declaration for Tax Reduction
Apply for tax reduction by submitting the necessary documents (in principle, copies are acceptable) to the relevant Metropolitan Taxation Office (or branch office/island branch office) having jurisdiction over the area, where the land/building are located, in principle, within 60 days from the date of acquisition of the residential building or land for residential use.
| Necessary documents | |
| Newly built residential building | Contract document for construction work / certificate of inspection or certificate of registered items (buildings) / floor plan (in the case of multipurpose residential buildings with residential complexes and stores, etc.) / long-term quality housing certification notice (for certified long-term quality housing) |
| Used residential building | Certificate of registered items (buildings) / certificate of residence (those with no entry of Individual Number) |
| Land for residential use | Certificate of registered items (land) / documents required for the reduction of taxes on newly built or used residential buildings as mentioned above |
(Note) Documents (purchase and sales contract, receipts for final expenses, etc.) other than those mentioned above may need to be submitted as required.
Calculation of Real Estate Acquisition Tax
・Example
A newly built residential building as well as land was purchased in May 2023 (R5). The area of the land is 125 m2 and the total floor area of the residential building is 100 m2. The purchase price (assessed value) is ¥72,000,000 for the land and ¥12,600,000 for the building. What is the amount of tax due?
・Calculation
| Building | Assessed value （A) Reduction for the residential building acquisition （B) Standard taxable value （C） Tax payment | ¥12,600,000 ¥12,000,000 ¥600,000 ¥18,000 | See the requirements of “Tax Deduction for Residential Building Acquisition”. (See “Deducted amount” .) (A) − (B) (C) × (Tax rate 3%) |
| Land | Assessed value （D） Standard taxable value （E) Assessed value per 1 ㎡ （F） Tax amount （G) Reduction for land for （H） residential use (Residential building reduction) Reduction for land for （I) residential use (Residential building reduction) Deduction (Residential building reduction) （J） Tax payment | ¥72,000,000 ¥36,000,000 ¥288,000 ¥1,080,000 ¥45,000 ¥1,728,000 ¥1,728,000 ¥0 | (D) × 1/2 (E) ÷Total land area (㎡) (E) × (Tax rate3%) (See “Tax Reduction” (A) ) (F) × {(total floor area of residential building ) × 2 (up to 200 m2 per building)} × Tax rate 3% (H) or (I), whichever is higher (G) − (J) No tax is imposed for the value of 0 or less. |
Therefore, the tax due is: Building ¥18,000 + Land ¥0 = ¥18,000
