What Is the Fixed Asset Tax on Akiya Homes in Japan?

What Is the Fixed Asset Tax on Akiya Homes in Japan?

One of the most common questions buyers ask when considering a vacant home (akiya) in Japan is: “How much will I pay in property taxes?” The answer is… it depends.

Japan doesn’t charge property tax the same way many Western countries do. Instead, the main annual tax for homeowners is called the Fixed Asset Tax (固定資産税 / kotei shisanzei). It applies to all land and buildings, including akiya, and varies by location, property size, and condition.

In this guide, we’ll explain how this tax works, how much you might expect to pay, and how owning an akiya may reduce—or increase—your bill.

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What Is Fixed Asset Tax in Japan?

Fixed Asset Tax is a municipal tax charged annually to property owners. It’s calculated based on the assessed value of your land and building, which is typically lower than the market value.

You’ll pay:

• A percentage of your land value
• A percentage of your building value
• And possibly a City Planning Tax (都市計画税) if the home is in an urban area

The standard rate is:

• 1.4% of assessed value for Fixed Asset Tax
• 0.3% for City Planning Tax (if applicable)

How Is the Value Calculated?

The assessed value (kotei shisan hyōka) is determined by the city or town office based on:

• The land's location, size, and shape
• The home’s structure, materials, age, and floor space
• Local real estate market data

Every few years, cities update these values. However, for older homes, the building’s assessed value often drops significantly over time—sometimes down to zero.

Typical Akiya Tax Scenarios

💡 Example 1: A small rural akiya

• Land value: ¥1,000,000
• Building value: ¥100,000
• Tax owed: (¥1,100,000 × 1.4%) = ¥15,400/year

💡 Example 2: A larger countryside property with land

• Land value: ¥2,500,000
• Building value: ¥500,000
• Tax owed: (¥3,000,000 × 1.4%) = ¥42,000/year

💡 Urban planning area? Add 0.3% for City Planning Tax:

• (¥3,000,000 × 0.3%) = ¥9,000
• Total = ¥51,000/year

Special Tax Discounts for Older Homes

In many cases, older homes—especially akiya—qualify for significant tax reductions, such as:

• Land-use discount for residential property (up to 1/6th of the taxable area)
• Lower rates on depreciated buildings
• Zero tax on buildings with no residual value (common for homes over 30–40 years old)

However, if the structure becomes a designated “Special Vacant House” (特定空家), due to deterioration or safety risks, the tax discount can be revoked—and you could be charged full land tax without the residential deduction.

How to Find Out Your Tax Amount

When you buy a home in Japan, the local tax office will send you:

• A Fixed Asset Tax Notice (kotei shisanzei nōzei tsūchisho) each year in April–June
• A breakdown of land vs. building value
• Instructions for paying by bank transfer, post office, or convenience store

If you’re not a resident of Japan, you’ll need to appoint a Tax Agent (納税管理人 / nōzei kanrinin) to receive the tax bill and handle payments on your behalf.

Do You Still Pay If the House Is Empty?

Yes. You’re responsible for the tax even if the home is:

• Vacant
• Not generating income
• In need of renovation
• Not connected to utilities

That’s one reason why so many akiya are sold cheaply—because the owners want to stop paying taxes for properties they no longer use.

How Old Houses Japan Helps

We support buyers by:

• Requesting current tax estimates from city hall before purchase
• Explaining how depreciation and land use impact your tax bill
• Helping you appoint a Tax Agent if needed
• Reviewing properties to ensure they haven’t lost their residential tax benefit
• Connecting you with bilingual support to interpret your annual notice

We make sure there are no tax surprises when you buy your akiya.

Final Thoughts

Fixed Asset Tax in Japan is usually modest—especially compared to other countries. But it’s not zero, and it doesn’t disappear just because the home is empty. By understanding how the system works, you can confidently budget for long-term ownership and avoid unnecessary penalties.

Need help estimating the tax for a property you're considering? Contact Old Houses Japan to get support, guidance, and local insights before you buy.