City Planning Tax in Japan (2026): Rates & How to Pay
City planning tax (都市計画税, toshi keikaku zei) is a local tax on land and buildings in Japan's urbanization promotion areas. Municipalities use it to fund roads, parks, sewers, and other city planning projects.
Here are the key facts:
Rate: set by each municipality, capped at 0.3%
Who pays: the property owner registered on January 1
Where: 639 of Japan's 1,719 municipalities levied it as of April 1, 2025
How: billed with fixed asset tax on one tax notice
Homes pay much less than the headline rate. For city planning tax, the first 200 m² of residential land per home is taxed on only 1/3 of its value.
If you own property in Japan or plan to buy, check whether your area levies this tax. This guide explains what it is, how much it costs, and how to pay it.
City planning tax at a glance
Item |
Details |
Japanese name |
都市計画税 (toshi keikaku zei) |
Maximum rate |
0.3% (legal limit rate) |
Levied in |
Urbanization promotion areas (市街化区域) |
Municipalities levying it |
639 of 1,719 (April 1, 2025) |
Taxpayers, FY2025 |
21.56 million for land, 27.71 million for houses |
Tax revenue, FY2024 |
¥1.44 trillion |
Billed with |
Fixed asset tax, on one tax notice |
Residential land reduction |
Taxed on 1/3 (first 200 m²) or 2/3 (beyond) |
Not taxed |
Depreciable assets, such as business equipment |
Source: Ministry of Internal Affairs and Communications
What is city planning tax?
City planning tax is called toshi keikaku zei (都市計画税, としけいかくぜい) in Japanese. Some English sources call it "urban planning tax."
Its roots go back to 1919, when Japan created a special tax for city planning projects. It became a dedicated-purpose tax in 1940. After postwar tax reforms, it returned in its current form in 1956.
What is the legal basis of city planning tax?
City planning tax is a local tax under Article 702 of Japan's Local Tax Act. It is a purpose tax, so municipalities must spend it on city planning and land readjustment projects.
Each municipality decides whether to levy the tax. A municipality that levies it must pass an ordinance. The Ministry of Internal Affairs and Communications oversees the system.
Municipalities use the money for establishing and maintaining facilities such as:
Urban planning facilities and projects |
Example |
|---|---|
Transportation |
Roads, urban express railways, parking lots, car terminals, etc. |
Public Facilities |
Parks, green spaces, squares, cemeteries, etc. |
Lifestyle |
Water, electricity, gas, sewerage, waste disposal facilities, etc. |
Urban development projects |
Land readjustment projects, new residential urban development projects, industrial park construction projects, urban redevelopment projects, new urban infrastructure development projects |
Source: Ministry of Internal Affairs and Communications
Which areas are subject to city planning tax?
The tax applies to land and buildings in urbanization promotion areas (市街化区域, shigaika kuiki). These are areas already built up, or areas designated for planned development within about 10 years.
Properties in urbanization control areas (市街化調整区域, shigaika chosei kuiki) are usually exempt. A municipality can tax them only in special circumstances, by ordinance.
Properties outside a city planning zone do not pay this tax at all.
Who must pay city planning tax, and what property is taxed?
City planning tax applies to land and buildings in taxable areas. It does not apply to depreciable assets, such as business equipment.
Taxable property: land and buildings
Location: inside an urbanization promotion area of a municipality that levies the tax
Taxpayer: the person or corporation registered as owner on January 1
The municipality totals all your land and buildings in the city. It bills them on one tax notice with your fixed asset tax.
What if you buy or sell during the year?
The owner on January 1 pays the full year's tax. This stays true even if you sell in March.
Buyers and sellers usually split the amount at closing, based on the ownership date. This is a private agreement, not a tax rule.
Are carports and sheds taxed?
A structure counts as a taxable building only if it meets three tests:
Weather protection: a roof and walls that block the outside air, often at least three sides
Fixed to the land: for example, on a foundation
Usable space: room for living, work, or storage
An open carport with only posts and a roof is not a taxable building. If a business uses it, it may count as a depreciable asset for fixed asset tax. City planning tax still does not apply.
How do I find out if my property is subject to city planning tax?
Use one of these four methods:
Ask your real estate agent. They can make inquiries on your behalf.
Contact the local tax office. Ask whether your address is inside an urbanization promotion area.
Check your tax notice. If the tax applies, the tax notice lists city planning tax next to fixed asset tax.
Explore a zoning map. Many cities publish zoning maps on their website. You can also try sites like https://toshi-keikaku.jp/.
How much is city planning tax?
Each municipality sets its own rate by ordinance. The legal maximum is 0.3%, and many cities charge exactly that. Some charge less.
Tax rates change over time. For example, Utsunomiya raised its rate from 0.25% back to 0.3% from fiscal year 2026. Yokohama charges 0.3%.
The basic formula
Taxable value × tax rate = city planning tax
The taxable value comes from your property's assessed value for fixed asset tax. To learn how your property's fixed asset value is determined, please refer to this article.
Reductions for residential land
Residential land gets a lower taxable value. The reduction differs from fixed asset tax:
Residential land type |
City planning tax |
Fixed asset tax |
Small residential land (first 200 m² per home) |
1/3 of assessed value |
1/6 of assessed value |
General residential land (beyond 200 m²) |
2/3 of assessed value |
1/3 of assessed value |
Rental buildings count 200 m² for each unit. Municipalities apply these reductions automatically, so you don't need to apply.
The half-price reduction for newly built homes covers fixed asset tax only. In most areas, city planning tax on a new building stays at the full rate. Tokyo's 23 wards offer an exception for earthquake-resistant rebuilds.
When no tax is charged
Municipalities don't charge the tax if your total taxable value in the city falls below a threshold:
Land: under ¥300,000
Buildings: under ¥200,000, rising to under ¥300,000 from fiscal year 2027
When values change
Municipalities revise assessed values every three years. The next revaluation takes effect in fiscal year 2027.
Example: City planning tax on a typical house
Say you own a house on 150 m² of land. The land is assessed at ¥30,000,000 and the building at ¥10,000,000. Your city charges 0.3%.
Part |
Calculation |
City planning tax |
Land |
¥30,000,000 × 1/3 × 0.3% |
¥30,000 |
Building |
¥10,000,000 × 0.3% |
¥30,000 |
Total |
¥60,000 |
Without the residential reduction, the land alone would cost ¥90,000. Fixed asset tax on the same property would be about ¥210,000 before any new-build reduction, so the full bill is roughly ¥270,000.
Note: your tax notice may show a lower taxable value. A burden adjustment system smooths out sharp rises in land values.
Want to estimate your own bill? Try MailMate's property tax calculator.
City planning tax in Tokyo's 23 wards
Tokyo works differently. In the 23 wards, the Tokyo Metropolitan Government levies city planning tax as a metropolitan tax.
For fiscal year 2026, Tokyo applies its own reductions:
Small residential land: the tax on the first 200 m² per home is cut in half.
Sharp increases: if land tax rises above 1.1 times last year's, Tokyo removes the excess (FY2024 to FY2026).
Small non-residential land: a 20% reduction for qualifying lots up to 400 m², such as shops or parking lots. Other requirements apply, and you must submit an application.
In the example above, a home in the 23 wards would pay ¥15,000 on the land instead of ¥30,000. The Metropolitan Tax Office for your ward mails the tax notice in early June. In the 23 wards, installments fall in June, September, December, and February.
Vacant houses and akiya
Land under a neglected vacant house can face higher property taxes. In the 23 wards, Tokyo warns that tax may rise on land with a "specified vacant house" (特定空家等).
Keep empty homes maintained to protect your residential reduction. Owners abroad should arrange regular checks.
How to pay city planning tax
When the tax notice arrives
The local tax office mails one tax notice for fixed asset tax and city planning tax. Most municipalities send it between April and June.
Paying in installments
You can pay in one lump sum or in four installments. Many municipalities use April, July, December, and February, but dates vary.
Check the due date on each payment slip. To pay everything at once, pay before the first due date.
Payment methods
Bank or post office: pay at the counter with your payment slip
Convenience store: if your slip has a barcode
Account transfer: direct debit, if you set it up with the city
Online: since April 2023, scan the eL-QR code on your tax notice
The eL-QR code lets you pay by credit card, internet banking, or a smartphone payment app. Credit card payments add a small system fee.
The national eL-QR payment site was renamed 'eLお支払サイト' on September 24, 2026.
If you live outside Japan
Owners without an address in Japan must appoint a tax agent (納税管理人, nozei kanrinin). You submit a notification form to the local tax office for the property. The agent then receives your tax notice and pays on your behalf.
MailMate's fluently bilingual tax representative service can act as your tax agent. It receives your tax notice, sends English summaries, and handles payment.
MailMate also helps with utility and internet setup for your Japanese property.
City planning tax vs fixed asset tax
City planning tax |
Fixed asset tax |
|
|---|---|---|
What it is |
A purpose tax for city planning projects |
A general municipal tax on fixed assets |
Taxable property |
Land and buildings |
Land, buildings, and depreciable assets |
Applicable area |
Urbanization promotion areas of municipalities that levy it |
Everywhere in Japan |
Who levies it |
639 of 1,719 municipalities |
All municipalities |
Who must pay |
The registered owner on January 1 |
The registered owner on January 1 |
Tax rate |
Set by each municipality, capped at 0.3% |
Standard 1.4%; municipalities may set higher |
Small residential land (first 200 m²) |
Taxed on 1/3 of value |
Taxed on 1/6 of value |
General residential land |
Taxed on 2/3 of value |
Taxed on 1/3 of value |
Billing |
Same tax notice as fixed asset tax |
Annual tax notice |
City planning tax: Frequently asked questions
What is city planning tax in Japan?
City planning tax (都市計画税, toshi keikaku zei) is a local tax on land and buildings in urbanization promotion areas. Municipalities use it to fund roads, parks, sewers, and land readjustment projects. The rate is capped at 0.3%. As of April 1, 2025, 639 of Japan's 1,719 municipalities levied it.
What's the difference between city planning tax and fixed asset tax?
Every municipality in Japan levies fixed asset tax, usually at 1.4%. City planning tax applies only in urbanization promotion areas of municipalities that choose to levy it. Fixed asset tax also covers depreciable assets, while city planning tax covers only land and buildings. You receive both on one tax notice.
How much is city planning tax on a house?
Most homeowners pay far less than 0.3% of the land's assessed value. The first 200 m² of residential land is taxed on 1/3 of its value. For example, a 150 m² lot assessed at ¥30,000,000 costs about ¥30,000 a year at 0.3%.
When do I pay city planning tax?
The local tax office mails your tax notice in spring, usually between April and June. You can pay in one lump sum or four installments. Many municipalities use April, July, December, and February as due months. In Tokyo's 23 wards, notices arrive in early June. Installments there fall in June, September, December, and February. Check the due date on each payment slip.
Do foreign investors have to pay city planning tax in Japan?
Yes. Foreign investors pay the same property taxes as Japanese owners. The tax applies to the registered owner on January 1, regardless of nationality or residence. Owners without an address in Japan must appoint a tax agent to receive notices and pay on their behalf.
How do non-residents pay city planning tax?
Non-resident owners appoint a tax agent (納税管理人, nozei kanrinin). They submit a notification form to the local tax office covering the property. The agent receives the tax notice and pays the tax. A bilingual tax representative service can handle this for you.
Does city planning tax apply to business properties and companies?
Yes. Companies pay city planning tax on land and buildings in taxable areas, just like individuals. Business equipment and other depreciable assets are not subject to it. When you use property for business or rental investing, the tax is usually a deductible business expense.
What other property taxes must I pay in Japan?
Owners pay fixed asset tax every year, plus city planning tax in taxable areas. When you buy, you also pay real estate acquisition tax, registration and license tax, and stamp duty on the contract. Rules and rates differ for each tax.
In closing
City planning tax applies only in urbanization promotion areas of municipalities that levy it. Check your tax notice or ask your local tax office.
Most homeowners pay far less than the 0.3% headline rate, thanks to the residential land reduction. Tokyo's 23 wards cut the tax further.
For the full picture, read our guides to fixed asset tax in Japan and Japan property taxes. Own property from abroad? Consider appointing MailMate as your tax representative.
Founded in 2019, MailMate has simplified property ownership for foreigners living abroad and is an increasingly popular option recommended by users and well-known industry figures.
Additionally, if you use MailMate's tax representative service for property owners, MailMate will take care of filing the tax representative form with the relevant tax office on your behalf.
Navigate Japan's tax system with an experienced tax representative service tailored for foreign property owners!
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