Higher Exemption Thresholds for Real Estate Acquisition Tax: JPY 160,000 for Land, JPY 660,000 for Newly Built Houses, and MoreThe line below which you pay no tax on getting land or a house has gone up
The FY2026 (Reiwa 8) tax reform raised the exemption thresholds for the real estate acquisition tax. For land, the threshold rises from JPY 100,000 to JPY 160,000; for houses, from JPY 230,000 to JPY 660,000 per unit for new construction, and from JPY 120,000 to JPY 340,000 for other acquisitions. The new thresholds apply to real estate acquired on or after April 1, 2026 (Reiwa 8).
Key points
- The exemption threshold for land is JPY 160,000 (JPY 100,000 before the reform)
- The threshold for houses built (new construction) is JPY 660,000 per unit (JPY 230,000 before the reform)
- The threshold for other houses (not new construction) is JPY 340,000 per unit (JPY 120,000 before the reform)
- The revised thresholds apply to real estate acquired on or after April 1, 2026 (Reiwa 8). They reflect that the last revision was in 1973 (Showa 48) and the rise in indexes for land and houses
- The same reform also raised the fixed asset tax exemption thresholds to JPY 300,000 for houses (currently JPY 200,000) and JPY 1.8 million for depreciable assets (currently JPY 1.5 million). These apply from fiscal year 2027 (Reiwa 9) onward
What to do in practice
- For real estate acquired (built, purchased, etc.) on or after April 1, 2026 (Reiwa 8), check the acquisition date and amount
- Check whether tax applies, and how much, in the notice from the prefectural tax office
There is a tax called the "real estate acquisition tax" (fudosan shutoku zei) that you pay when you get land or a building. When the amount is small, no tax is charged. That line is called the "exemption threshold." From April 2026 (Reiwa 8), this line went up.
Points
- The line for land went from JPY 100,000 to JPY 160,000
- The line for a newly built house went from JPY 230,000 to JPY 660,000 per unit
- The line for a house you get in other ways, such as buying one, went from JPY 120,000 to JPY 340,000 per unit
What the words mean
- Real estate acquisition tax
- A prefectural tax you pay just once when you get land or a building
- Exemption threshold
- If the amount is below this, no tax is charged
- Ministry of Finance: Ministry of Finance: Explanation of the FY2026 (Reiwa 8) Tax Reform (Amendments to the Local Tax Act, etc.)
- Ministry of Finance: Ministry of Finance: Outline of the FY2026 (Reiwa 8) Tax Reform
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.