Under the FY2026 (Reiwa 8) tax reform, the special measure that halves property tax on new homes is extended by five years (April 1, 2026 to March 31, 2031). The minimum floor area is eased to 40 sq m in principle (currently 50 sq m), while homes in certain hazard areas are excluded. The special measure for replacing a residence is also extended by two years.If you own a house or land, you pay a tax every year called property tax. For a newly built house, there is a rule that cuts this tax in half for the first few years. This rule has been extended by five years, until March 2031. The lowest size that qualifies goes down to 40 sq m.
Example of the property tax reduction on a new home (JPY 25 million home, up to year 3)
The Guidelines on Price Negotiations for the Appropriate Pass-through of Labor Costs, drawn up by the Japan Fair Trade Commission and the Cabinet Secretariat, were revised as of December 26, 2025 (Reiwa 7). A special survey shows that the pass-through rate for labor costs is lower than for raw materials and energy costs.When a business raises the pay of its workers, it wants to raise its prices too. But the companies that buy from it often say "that's a problem for us," so raising prices is hard. This is today's challenge. The government has published a model for how to talk it over.
Read more →Ministry of Land, Infrastructure, Transport and Tourism (MLIT)Real estateFor occupancy from January 1, 2026 to December 31, 2030 (Reiwa 8 to Reiwa 12)
Under the FY2026 (Reiwa 8) tax reform, the housing loan tax credit is extended by five years and applies to homes occupied from January 1, 2026 to December 31, 2030. For energy-efficient existing homes the credit period is expanded to 13 years, and the floor area requirement is eased to 40 sq m or more. The related tax law was enacted on March 31, 2026.When you borrow money to buy a home, there is a system that lowers your yearly tax according to how much of the loan is left. This system has been extended by five years, to people who move in by 2030. Used homes with high energy-saving performance also get better rules.
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