Buying in Japan9 min read

Japan Registration & License Tax in 2026: What Property Buyers Pay

In 2026, qualifying land transfers can use a 1.5% registration-tax rate, qualifying residential-building transfers 0.3%, and qualifying residential mortgages 0.1%—generally applied to assessed value or the secured claim, not the sale price.

By Engawa Editorial TeamPublished August 23, 2026Last reviewed August 23, 2026

Buyer calculating Japan registration and license tax for a property purchase — Registration tax should be modeled from the statutory tax base and applicable registration, not as a blanket percentage of purchase price. Illustration from the Engawa Journal.

Japan’s registration and license tax (登録免許税) is paid when a property right is registered, so buyers should model it separately from acquisition tax, annual fixed-asset tax and brokerage fees. For a typical 2026 purchase, the tax base is usually the property’s fixed-asset-tax assessed value, not the purchase price, and current reduced rates can materially change the closing-cost estimate.

For buyers, the most important current rates are 1.5% for a land ownership transfer by sale, 0.3% for a qualifying residential-building ownership transfer, and 0.1% for a qualifying mortgage registration. The reduced residential-building rates generally run through March 31, 2027; the reduced land-transfer rate is available for qualifying registrations through March 31, 2029 under current National Tax Agency guidance.

Registration tax is not calculated from the sale price

A common mistake is to multiply the purchase price by the registration-tax rate. The National Tax Agency says the tax base for real-estate ownership registrations is generally the property value recorded in the municipal fixed-asset-tax ledger.

That means a ¥50 million transaction does not automatically create a ¥750,000 land registration tax at 1.5%. You first need the relevant assessed value for the land and building.

This distinction is especially important when comparing two properties with similar asking prices but different assessed values.

The main 2026 rates buyers should know

For a purchase registered in 2026, the current NTA guidance shows these common rates:

Land ownership transfer by sale: standard rate 2.0%, reduced to 1.5% for eligible registrations under the current relief.
Building ownership transfer by sale: standard rate 2.0%.
Qualifying residential-building ownership transfer: reduced to 0.3% when the statutory housing conditions are met.
Qualifying new residential-building ownership preservation registration: reduced to 0.15%.
Mortgage registration: standard rate 0.4%; qualifying residential mortgage registration can be reduced to 0.1%.

The land and building portions are therefore often taxed at different rates even though they are part of the same purchase.

Worked example: land plus an existing home

Assume a buyer purchases a qualifying owner-occupied existing home in 2026 with these assessed values:

land assessed value: ¥18,000,000
building assessed value: ¥8,000,000

If the land transfer qualifies for the 1.5% rate:

¥18,000,000 × 1.5% = ¥270,000

If the building qualifies for the 0.3% residential transfer rate:

¥8,000,000 × 0.3% = ¥24,000

The combined ownership-registration tax would therefore be ¥294,000 before adding any mortgage-registration tax or judicial-scrivener fees.

If the building did not qualify for the residential reduction and instead used the standard 2.0% transfer rate, the building portion alone would be:

¥8,000,000 × 2.0% = ¥160,000

That difference is why eligibility should be checked before using a generic “closing costs = X% of price” rule.

What makes a residential building eligible for the reduced rate?

The reduced residential-building rate is not automatic merely because the property contains a home.

NTA guidance states that the relief is aimed at individuals acquiring a qualifying residential house for their own residence. Current conditions include requirements around residential use, timing of registration, floor area and, for existing homes, age or seismic-safety conditions.

For existing homes, current NTA guidance describes a route where the building was constructed on or after January 1, 1982, or otherwise satisfies specified earthquake-resistance standards.

The buyer normally also needs the required municipal certificate when applying for the registration. The NTA specifically warns that the certificate must be attached at the time of the registration application; submitting it later does not retroactively create the reduced rate.

The mortgage-registration tax is a separate line item

If you finance the purchase with a mortgage, the lender’s security interest also has to be registered.

The standard mortgage-registration rate is 0.4% of the secured claim amount, while qualifying residential mortgages can use a 0.1% reduced rate under the current housing relief.

For example, on a qualifying ¥30 million mortgage:

¥30,000,000 × 0.1% = ¥30,000

At the standard 0.4% rate, the same secured amount would produce ¥120,000 in registration tax.

This tax is separate from lender fees, guarantee fees and judicial-scrivener charges.

Why overseas buyers should not assume the housing reduction applies

Foreign nationality does not by itself prevent property ownership in Japan, but the residential-building reduced rate is tied to statutory housing conditions rather than simply to the buyer being an individual.

An overseas investor buying a rental property or second home should therefore not automatically model the 0.3% residential-building rate. The relief is designed around qualifying residential acquisition and use conditions, including owner-occupation requirements.

For the broader ownership question, see Engawa’s guide to whether foreigners can buy property in Japan.

Registration tax vs acquisition tax vs fixed-asset tax

These three taxes are often confused:

Registration and license tax: national tax triggered by registration of ownership, mortgage and other legal rights.
Real-estate acquisition tax: prefectural tax triggered by acquiring land or buildings; see Engawa’s 2026 acquisition-tax guide.
Fixed-asset and city-planning tax: recurring local ownership taxes generally tied to the January 1 owner; see Engawa’s 2026 property-tax guide.

A realistic purchase model should keep all three separate.

A buyer checklist before signing

Before relying on a registration-tax estimate, confirm:

Land assessed value from the current fixed-asset-tax records.
Building assessed value separately from the land.
Registration date, because relief has statutory expiry dates.
Owner-occupation status if you are assuming a residential-building reduction.
Floor area and other qualifying-house requirements.
Existing-home age or seismic eligibility where relevant.
Required municipal housing certificate and whether the judicial scrivener will have it before filing.
Mortgage amount and whether the 0.1% mortgage-registration relief applies.
Judicial-scrivener fees, which are professional fees and not part of the tax itself.

For an all-in transaction estimate, use Engawa’s Japan closing-cost calculator alongside the property-specific assessed values.

The practical closing-cost rule

Do not estimate registration and license tax as a flat percentage of the purchase price.

Instead, split the purchase into land, building and mortgage registrations; use the correct statutory tax base for each; then test whether each reduced rate actually applies. This produces a far more reliable estimate than a generic transaction-cost percentage.

FAQ

What is Japan’s registration and license tax on land in 2026?

For ownership transfer of land by sale, the standard rate is 2.0% of the relevant assessed value, while current NTA guidance provides a reduced 1.5% rate for qualifying registrations through March 31, 2029.

What is the registration tax on a residential building in Japan in 2026?

The standard ownership-transfer rate for a building by sale is 2.0%. A qualifying residential building acquired by an individual for their own residence can use a reduced 0.3% ownership-transfer rate under the current housing relief, subject to the statutory conditions and required certificate.

Is registration tax based on the property purchase price?

Usually no. For real-estate ownership registrations, the NTA generally uses the value recorded in the municipal fixed-asset-tax ledger as the tax base rather than the transaction price.

How much is mortgage registration tax in Japan?

The standard rate is 0.4% of the secured claim amount. A qualifying residential mortgage registration can use a reduced 0.1% rate under the current housing relief.

Can a foreign investor use the 0.3% residential-building rate?

Do not assume so. The reduced rate depends on qualifying residential-use and property conditions, not simply on nationality or ownership. An investment or second-home purchase may not satisfy the owner-occupation requirements.

Sources

Sources checked 23 August 2026. This article is general information, not tax or legal advice. Registration-tax liability and relief depend on the property, registration, timing and supporting documents. Confirm the filing with the judicial scrivener handling the registration or a qualified Japanese tax professional.

Frequently asked questions

What is Japan's registration and license tax on land in 2026?

For ownership transfer of land by sale, the standard rate is 2.0% of the relevant assessed value, while current National Tax Agency guidance provides a reduced 1.5% rate for qualifying registrations through March 31, 2029.

What is the registration tax on a residential building in Japan in 2026?

The standard ownership-transfer rate for a building by sale is 2.0%. A qualifying residential building acquired by an individual for their own residence can use a reduced 0.3% ownership-transfer rate under the current housing relief, subject to the statutory conditions and required certificate.

Is registration tax based on the property purchase price?

Usually no. For real-estate ownership registrations, the National Tax Agency generally uses the value recorded in the municipal fixed-asset-tax ledger as the tax base rather than the transaction price.

How much is mortgage registration tax in Japan?

The standard rate is 0.4% of the secured claim amount. A qualifying residential mortgage registration can use a reduced 0.1% rate under the current housing relief.

Can a foreign investor use the 0.3% residential-building rate?

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