The housing loan tax credit limit changes with the year of occupancy and the home's energy-saving performanceIf you take out a home loan, you get some tax back every year
For those who start living in the home between January 1, 2022 (Reiwa 4) and December 31, 2030 (Reiwa 12), the special tax credit for housing loans (住宅借入金等特別控除) deducts 0.7% of the year-end loan balance and similar amounts. The annual deduction limit differs by housing category and year of occupancy; for energy-standard-compliant housing it is JPY 140,000 for occupancy in 2026 and 2027 (Reiwa 8 and 9) (JPY 210,000 for eligible special-case individuals). It is based on laws and regulations as of April 1, 2026 (Reiwa 8).
Key points
- The credit rate is 0.7% of the year-end balance and similar amounts (fractions under JPY 100 are rounded down).
- Certified long-life quality housing and certified low-carbon housing: 13 years for occupancy in 2024 to 2030 (Reiwa 6 to 12), JPY 315,000 per year (JPY 350,000 for special-case individuals).
- ZEH-level energy-saving housing: 13 years for occupancy in 2024 to 2030 (Reiwa 6 to 12), JPY 245,000 per year (JPY 315,000 for the same group).
- Energy-standard-compliant housing: JPY 210,000 (JPY 280,000 for the same group) for occupancy in 2024 and 2025 (Reiwa 6 and 7), and JPY 140,000 (JPY 210,000 for the same group) for occupancy in 2026 and 2027 (Reiwa 8 and 9).
- The usual requirements are floor area of at least 50 square meters and total income of JPY 20 million or less (the special rule for small homes: at least 40 square meters and JPY 10 million or less).
What to do in practice
- Check the category of the home you plan to acquire (long-life quality, ZEH-level, energy-standard-compliant, etc.) and the planned year of occupancy.
- Check whether you will count as a special-case individual (for example, under 40 with a spouse) as of December 31 of the year of occupancy.
When you borrow money to buy a home, 0.7% of the debt still left at the end of each year can be subtracted from your taxes. The better the home's energy-saving performance, the higher the upper limit of what can be subtracted.
Points
- 0.7% of the debt left at year-end is subtracted from your tax
- The better the home's energy-saving performance, the higher the yearly upper limit of the amount you can subtract
- There are conditions you must meet, such as the size of the home and the person's income
What the words mean
- Tax credit (控除)
- Being allowed to subtract an amount from your tax
- Energy-saving home (省エネ住宅)
- A home where you can live comfortably without using much electricity or gas
- National Tax Agency (NTA): NTA: No. 1211-1 When a Home Is Newly Built, Etc., and Occupied as a Residence in 2022 (Reiwa 4) or Later (Special Tax Credit for Housing Loans)
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.