固定資産税 — Fixed Asset Tax
Podrobný sprievodca čoskoro
Pracujeme na komplexnom vzdelávacom sprievodcovi pre Japan Fixed Property Tax (固定資産税). Čoskoro sa vráťte pre podrobné vysvetlenia, vzorce, príklady z praxe a odborné tipy.
固定資産税 (kotei shisan-zei — fixed asset tax) is Japan's annual property tax, levied by municipalities on the owners of land, buildings, and depreciable business assets as of 1 January each year. The standard fixed asset tax rate is 1.4% of the official assessed value (固定資産税評価額). Additionally, properties located within urbanisation promotion areas (市街化区域) also pay the city planning tax (都市計画税, toshi keikaku-zei) at up to 0.3% of the assessed value annually. The assessed values are reassessed every 3 years through the triennial revaluation process (評価替え), meaning property taxes adjust only once every three years to reflect changing market conditions. Significant reductions apply to residential land: land used as the site of a residential building receives a residential land special measure that reduces the assessed value for tax purposes to 1/6 for the small residential land portion (up to 200 square metres, 小規模住宅用地) and 1/3 for land above 200 square metres (一般住宅用地). This dramatically reduces the tax on residential land. For new residential buildings, a further reduction of 50% of the building's fixed asset tax applies for 3 years after completion (5 years for mid-rise/high-rise condominiums and energy-efficient homes). The fixed asset tax is the primary source of local tax revenue for Japanese municipalities and is assessed and collected by the municipal government, with the city planning tax collected simultaneously. Property owners receive a combined tax notice in spring (typically April-May) and can pay in four quarterly installments or as a lump sum.
Fixed Asset Tax = Assessed Value × 1.4%; City Planning Tax = Assessed Value × 0.3% (in urbanisation promotion areas); Residential Land Small Plot: Assessed Value × (1/6) × 1.4%; General Residential Land: Assessed Value × (1/3) × 1.4%; New Residential Building Reduction: Building Tax × 50% for 3-5 years
- 1The municipality assesses the property based on fixed asset tax assessed values updated every 3 years.
- 2For land, apply the relevant reduction ratio: 1/6 for first 200 sqm of residential land site, 1/3 for residential land above 200 sqm.
- 3For buildings, calculate 1.4% of the assessed value; apply the new construction 50% reduction if the building was completed within the qualifying period.
- 4For city planning tax, calculate 0.3% of the assessed value with the same residential land reductions (1/3 or 2/3 of full assessed value).
- 5Sum all tax components for the annual fixed asset tax and city planning tax.
- 6The municipality sends a combined tax notice (納税通知書) typically in April-May, with options for 4 quarterly payments.
- 7Verify that the assessments are correct — owners can contest obviously incorrect valuations through the fixed asset assessment review committee (固定資産評価審査委員会).
Residential land under 200 sqm uses 1/6 of assessed value; dramatic reduction from the unmodified rate
Fixed asset: ¥30M × 1/6 × 1.4% = ¥70,000. City planning: ¥30M × 1/3 × 0.3% = ¥30,000. Total = ¥100,000.
New standard residential buildings receive 50% tax reduction for the first 3 years
Normal: ¥12M × 1.4% = ¥168,000. First 3 years: ¥168,000 × 50% = ¥84,000. Saving = ¥84,000 × 3 = ¥252,000.
Land share under 200 sqm (typical for condos) = 1/6 reduction for tax; building tax full rate
Land: ¥8M × 1/6 × 1.4% = ¥18,667. Building: ¥15M × 1.4% = ¥210,000. City plan combined ≈ ¥21,333. Total ≈ ¥250,000.
Commercial property pays full rates without residential land reductions
¥100M × 1.4% = ¥1,400,000. ¥100M × 0.3% = ¥300,000. Combined annual = ¥1,700,000.
Professionals in finance and lending use Japan Fixed Asset Tax as part of their standard analytical workflow to verify calculations, reduce arithmetic errors, and produce consistent results that can be documented, audited, and shared with colleagues, clients, or regulatory bodies for compliance purposes.
University professors and instructors incorporate Japan Fixed Asset Tax into course materials, homework assignments, and exam preparation resources, allowing students to check manual calculations, build intuition about input-output relationships, and focus on conceptual understanding rather than arithmetic.
Consultants and advisors use Japan Fixed Asset Tax to quickly model different scenarios during client meetings, enabling real-time exploration of what-if questions that would otherwise require returning to the office for detailed spreadsheet-based analysis and reporting.
Individual users rely on Japan Fixed Asset Tax for personal planning decisions — comparing options, verifying quotes received from service providers, checking third-party calculations, and building confidence that the numbers behind an important decision have been computed correctly and consistently.
Extreme input values
In practice, this edge case requires careful consideration because standard assumptions may not hold. When encountering this scenario in japan fixed asset tax calculations, practitioners should verify boundary conditions, check for division-by-zero risks, and consider whether the model's assumptions remain valid under these extreme conditions.
Assumption violations
In practice, this edge case requires careful consideration because standard assumptions may not hold. When encountering this scenario in japan fixed asset tax calculations, practitioners should verify boundary conditions, check for division-by-zero risks, and consider whether the model's assumptions remain valid under these extreme conditions.
Rounding and precision effects
In practice, this edge case requires careful consideration because standard assumptions may not hold. When encountering this scenario in japan fixed asset tax calculations, practitioners should verify boundary conditions, check for division-by-zero risks, and consider whether the model's assumptions remain valid under these extreme conditions.
| Property Type | Assessed Value Base | Fixed Asset Rate | City Planning Rate |
|---|---|---|---|
| Small residential land (≤200 sqm) | 1/6 of assessed | 1.4% | 0.3% (on 1/3 assessed) |
| General residential land (>200 sqm) | 1/3 of assessed | 1.4% | 0.3% (on 2/3 assessed) |
| New residential building (yr 1-3) | 50% of full tax | 1.4% × 50% | 0.3% |
| New high-rise condo (yr 1-5) | 50% of full tax | 1.4% × 50% | 0.3% |
| Commercial land/building | Full assessed value | 1.4% | 0.3% |
What is the difference between fixed asset tax and city planning tax?
The fixed asset tax (固定資産税) is levied by all municipalities nationwide at 1.4% on all taxable property. The city planning tax (都市計画税) is an additional levy at up to 0.3%, collected only in designated urbanisation promotion areas (primarily in and around cities). Both are billed together on the same annual notice.
How is the assessed value determined?
The fixed asset tax assessed value is determined by the municipality every 3 years (triennial revaluation). For land, it is approximately 70% of the official public notice price (公示地価). For buildings, it is calculated using a cost approach based on construction cost and depreciation tables, typically resulting in a value of 60-70% of actual market value.
What is the small residential land measure?
For land hosting a residential building, the assessed value is reduced to 1/6 (for the first 200 sqm — small residential land) or 1/3 (for land over 200 sqm — general residential land) for fixed asset tax purposes, and to 1/3 or 2/3 for city planning tax purposes. This dramatically reduces the annual tax burden on homeowners.
Can I contest my property's assessed value?
In the context of Japan Fixed Asset Tax, this depends on the specific inputs, assumptions, and goals of the user. The underlying formula provides a deterministic relationship between inputs and output, but real-world application requires interpreting the result within the broader context of finance and lending practice. Professionals typically cross-reference calculator output with industry benchmarks, historical data, and regulatory requirements. For the most reliable results, ensure inputs are sourced from verified data, understand which assumptions the formula makes, and consider running multiple scenarios to bracket the range of likely outcomes.
Who pays fixed asset tax — buyer or seller — in the year of property transfer?
The person who owned the property on 1 January is the taxpayer for the entire year. However, it is common commercial practice in Japan for buyer and seller to divide the annual tax proportionally based on the days of ownership in the sale year, even though legally the seller is responsible. This division is typically handled as an adjustment at settlement.
How many payment installments are available?
In the context of Japan Fixed Asset Tax, this depends on the specific inputs, assumptions, and goals of the user. The underlying formula provides a deterministic relationship between inputs and output, but real-world application requires interpreting the result within the broader context of finance and lending practice. Professionals typically cross-reference calculator output with industry benchmarks, historical data, and regulatory requirements. For the most reliable results, ensure inputs are sourced from verified data, understand which assumptions the formula makes, and consider running multiple scenarios to bracket the range of likely outcomes.
Does fixed asset tax apply to vacant land?
Yes. Vacant land is taxed at the full fixed asset tax rate without the residential land reduction (since there is no qualifying residential building on the land). This creates a tax incentive to build on or actively use urban land, as vacant land is taxed more heavily than developed residential land.
Do agricultural lands pay fixed asset tax?
In the context of Japan Fixed Asset Tax, this depends on the specific inputs, assumptions, and goals of the user. The underlying formula provides a deterministic relationship between inputs and output, but real-world application requires interpreting the result within the broader context of finance and lending practice. Professionals typically cross-reference calculator output with industry benchmarks, historical data, and regulatory requirements. For the most reliable results, ensure inputs are sourced from verified data, understand which assumptions the formula makes, and consider running multiple scenarios to bracket the range of likely outcomes.
Pro Tip
Always verify that the residential land reduction (1/6 or 1/3) is applied to your property tax assessment. Even well-maintained municipal records sometimes contain errors in the residential classification field. A quick review of the notice against the property register prevents years of inadvertently overpaying at commercial rates.
Did you know?
Japan's fixed asset tax generates approximately ¥9 trillion per year in local government revenue — more than any other local tax and roughly 40% of total municipal tax receipts. This makes it the financial backbone of Japan's approximately 1,700 municipalities, funding local services, schools, and infrastructure.