Important: the standard 1.4% property tax rate and the 0.3% city planning tax ceiling can vary by municipality. Confirm the exact rate and assessed value with your municipality — this is only an estimate, not a tax bill.
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Building property tax is unaffected by the exemption removal, so it is identical in both scenarios.
How an advisory triggers the property tax hike
Under Japan's 2023-revised Act on Special Measures for Promotion of Proper Management of Vacant Houses (空家等対策特別措置法), a municipality can designate a neglected vacant house as a Specified Vacant House (特定空家等) or the newer Neglected Vacant House (管理不全空家等). For either category, once the municipality issues an advisory (勧告) and the property is not remedied by the assessment date (賦課期日, January 1), the residential land tax exemption (住宅用地特例) that reduced the property's taxable base is removed.
Once removed, the small-scale residential land portion (up to 200 m²) loses its 1/6 reduction and is taxed on the full assessed value — up to a 6x increase — while the general residential land portion (over 200 m²) loses its 1/3 reduction for up to a 3x increase. City planning tax uses different fractions (1/3 and 2/3), so its multiples differ (3x and 1.5x). The building's own property tax is a separate calculation and does not change.
Residential land exemption fractions (taxable base reduction)
| Category | Property tax (taxable base fraction) | City planning tax (taxable base fraction) |
|---|
| Small-scale residential land (up to 200 m²) | 1/6 | 1/3 |
| General residential land (over 200 m²) | 1/3 | 2/3 |
| After advisory (exemption removed, all land) | 1/1 (no exemption) | 1/1 (no exemption) |
When does the 6x property tax hike apply? See the exact example
If a municipality issues an advisory for a Specified or Neglected Vacant House and the property is still not remedied by the following assessment date (January 1), the residential land exemption is removed and land property tax can rise up to 6x. For example, a small-scale residential lot assessed at 12,000,000 yen on 150 m² normally pays 28,000 yen in land property tax, but 168,000 yen once the exemption is removed (the building's tax is unaffected).
How to calculate it
- Enter the land's assessed value and its area in square meters.
- Split the assessed value proportionally into the small-scale portion (up to 200 m²) and the general portion (over 200 m²).
- For the normal scenario, apply the 1/6 (small-scale) and 1/3 (general) exemption fractions to get the taxable base, then apply the tax rate (standard 1.4%).
- For the post-advisory scenario, apply the tax rate to the full assessed value with no exemption.
- Add the building's own property tax (same in both scenarios) to each land figure to get the totals, then compare.
Property tax formula
Land tax (normal) = assessed value x (small-scale share x 1/6 + general share x 1/3) x 1.4% / Land tax (post-advisory) = assessed value x 1.4% (no exemption)
- Small-scale residential land = the portion of the lot up to 200 m² (1/6 exemption)
- General residential land = the portion of the lot over 200 m² (1/3 exemption)
- Standard rate = 1.4% (can vary by municipality)
- City planning tax rate = up to 0.3% (urbanization promotion areas only, can vary)
Residential land exemption fractions (taxable base reduction)
| Category | Property tax (taxable base fraction) | City planning tax (taxable base fraction) |
|---|
| Small-scale residential land (up to 200 m²) | 1/6 | 1/3 |
| General residential land (over 200 m²) | 1/3 | 2/3 |
| After advisory (exemption removed, all land) | 1/1 (no exemption) | 1/1 (no exemption) |
Frequently asked questions
When does the 6x property tax hike start?
It applies from the fiscal year following an advisory (勧告) issued for a Specified Vacant House or Neglected Vacant House, if the property is still not remedied on the assessment date (賦課期日), January 1. Fixing the property restores the exemption.
What conditions trigger the 6x increase?
The lot must be small-scale residential land (200 m² or less). The house must be designated a Specified Vacant House or Neglected Vacant House, receive a municipal advisory, and remain unremedied by the assessment date — then the 1/6 exemption is removed and the land is taxed at full value (1/1), roughly a 6x rise. The portion over 200 m² loses its 1/3 exemption instead, for roughly 3x.
What happens to property tax after an advisory?
The advisory alone does not change the tax. Only if the property remains unremedied by the next assessment date does the residential land exemption (1/6 or 1/3 for property tax, 1/3 or 2/3 for city planning tax) get removed for that lot, taxing the land at full assessed value. The building's own property tax is unaffected.
How is this different from a Specified Vacant House?
The Specified Vacant House category has existed since 2015 and targets houses in a seriously deteriorated state, such as risk of collapse. The Neglected Vacant House category was newly created by the 2023 revision for houses that are poorly maintained but have not yet reached that severity. Both categories lose the residential land exemption at the same advisory stage if not remedied.
Why does the tax on a vacant house go up at all?
Clearing the lot to bare land also removes the residential land exemption, so some owners left a deteriorating house standing just to keep the tax break. The 2023 law reform closed this loophole by adding the Neglected Vacant House category alongside the Specified Vacant House category, letting municipalities remove the exemption at the advisory stage even while the building still stands.
Important: the standard 1.4% property tax rate and the 0.3% city planning tax ceiling can vary by municipality. Confirm the exact rate and assessed value with your municipality — this is only an estimate, not a tax bill.
Sources: MIC (Soumu) — property tax overview and exemption fractions, MLIT — vacant house management guidance (PDF), Tokyo Metropolitan Tax Bureau — exemption removal for Specified/Neglected Vacant Houses