Half-Rate Property Tax on New Homes Extended 5 Years: Floor Area Eased to 40 sq m, Hazard Areas ExcludedThe rule that halves the "house tax" on newly built homes will continue for 5 more years
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.
- Without the measure (per year)
- JPY 182,000
- With the measure (per year)
- JPY 91,000
- Difference per year
- JPY 91,000
- Savings over three years (MLIT estimate)
- About JPY 270,000
Key points
- The special measure halving property tax on new homes is extended by five years. The reduction lasts 3 years for detached houses and 5 years for condominiums
- The minimum floor area for eligible homes is eased to 40 sq m in principle (currently 50 sq m), and homes located in certain hazard areas are excluded
- For certified long-life quality housing, the property tax reduction lasts 5 years for detached houses and 7 years for condominiums. The deduction from the real estate acquisition tax base is JPY 13 million (JPY 12 million for ordinary homes). Both are extended by five years
- The special measure for replacing a residence (income tax and resident tax) is extended by two years (January 1, 2026 to December 31, 2027). Replacement assets in certain hazard areas are excluded
- MLIT estimate example: for a newly built JPY 25 million home, property tax up to the third year is JPY 182,000 a year without the measure and JPY 91,000 with it (about JPY 270,000 saved over three years)
What to do in practice
- Check the floor area and location (whether in a hazard area) of the property you plan to build or buy, and sort out whether the measure applies
- Confirm the funding plan for real estate acquisition tax and property tax with the local government's tax notices or a professional's (tax accountant, etc.) estimate
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.
Points
- For a new house, the tax is halved for 3 years for a detached house and 5 years for a condominium
- For a long-lasting house (long-life quality housing), the halved period is longer (5 years for detached houses and 7 years for condominiums)
- Houses of 40 sq m or more qualify, but houses in dangerous places (hazard areas) are left out
What the words mean
- Property tax
- A tax that people who own land or houses pay to the city or town every year
- Long-life quality housing
- A house that meets the national standards for being safe to use for a long time
- Ministry of Land, Infrastructure, Transport and Tourism (MLIT): MLIT: Outline of the FY2026 (Reiwa 8) tax reform (extension of the tax reduction for new homes, etc.)
- Ministry of Land, Infrastructure, Transport and Tourism (MLIT): MLIT: Cabinet approval of the extension and expansion of the housing loan tax credit
This article summarizes and explains materials published by government agencies and is not advice on any individual case. Rules can change, so for actual procedures and decisions always check the latest original materials and consult professionals such as tax accountants or labor and social security attorneys. English, Simplified Chinese and Traditional Chinese versions are translations prepared from the Japanese articles for convenience. If anything differs, the Japanese text and the original source take precedence.