🏢 Japan Fixed Asset Tax Calculator

Fixed asset tax (固定資産税, kotei shisanzei) is an annual municipal tax on land, buildings and depreciable business assets. For real estate the standard rate is 1.4% of the assessed value (課税標準額) set by the city every three years — not the market price, but a value the municipality assigns, typically well below market for residential land. Most residential properties also pay a city planning tax (都市計画税) of up to 0.3% if the land is within a designated urbanisation area.

Japan funds a large share of local services through this tax. Because assessed values are deliberately lower than market prices — often 60-80% — owners are often surprised that a property bought for 40 million yen is taxed on an assessment of only 20-25 million. The municipality reassesses every three years (評価替え), and the notice (固定資産税納税通知書) arrives each May or June. If you are borrowing to buy the property, the mortgage calculator shows how the tax stacks onto the monthly payment.

The calculator multiplies the assessed value of the land and the building by 1.4%. For a small residential plot (居住用住宅用地 under 200m² — the "small" bracket) the assessed value used is only 1/6 of the standard assessment for the land portion, a huge relief for homeowners. Land between 200m² and 400m² gets 1/3. The city planning tax (0.3% cap) is applied to the land and building values in urbanised areas.

Residential land relief. Land used for housing is valued at a fraction of its assessed value before the standard 1.4% rate is applied.

Newly built houses get a building tax halving (新築住宅の減額) for the first 3-5 years, which this calculator flags when you check the “new construction” box. Add the city planning tax where applicable. For the mortgage side of the same property, see the mortgage calculator — the monthly payment plus these taxes is the real cost of owning.

1. Enter the assessed value of the land (課税標準額, from your notice).
2. Enter the assessed value of the building.
3. Select whether the land qualifies as small residential land (200m² or less).
4. Optionally enable city planning tax and the new-build halving.
5. Click Calculate to see the annual fixed asset tax and any city planning tax.

What is 'assessed value' and why is it lower than what I paid?

The municipality sets a taxable value (課税標準額) every three years based on its own valuation of land and buildings — deliberately conservative, often 60-80% of market value. The tax is 1.4% of that assessed figure, not of the purchase price.

How does the small-residential-land discount work?

For the portion of a residential plot up to 200m², only 1/6 of the assessed value is taxed; the 200-400m² band is taxed on 1/3. The discount is automatic if the land qualifies as the home’s site.

What is city planning tax (都市計画税)?

An additional tax of up to 0.3% (typically 0.3% in large cities, 0.2% elsewhere) on land and buildings inside urbanisation promotion areas. It is collected on the same notice as fixed asset tax and funds city infrastructure.

Do I pay this on a condominium (マンション)?

Yes — each unit is taxed separately on its assessed value for the land share and building. The land share uses the same small-residential discount. The notice is issued to each owner.

When does the tax get billed?

Municipalities send the notice in May or June, payable in four quarterly instalments (usually June, September, December, February). Employers cannot deduct it — you pay it directly.

Is there relief for new buildings?

Yes — a newly built residential house gets the building portion of fixed asset tax halved for three years (five for long-life certified homes), subject to a floor-area cap. The discount appears automatically on the notice.

This tool is for informational purposes only and does not constitute financial advice. Consult a qualified financial professional for advice specific to your situation.

The 200m² small-residential-land discount is the biggest lever: an 8 million yen assessment drops to 1.33 million for the 1.4% rate, cutting the bill from 112,000 yen to 18,667 yen. The discount applies only to the part of the plot under 200m² used as the home’s site — a 300m² plot gets 1/6 on the first 200 and 1/3 on the rest. New-build houses enjoy a halving of the building tax for three years (or five for long-life homes). Depreciable business assets such as machinery are also fixed-asset-taxable at 1.4% of the book value — small factories often forget this. If you inherited the property, the assessed value is also the basis for inheritance tax calculations, so it pays to keep the notice.