1. Basics

Fixed Asset Tax is 1.4% of the assessed base

City Planning Tax is up to 0.3% set by each municipality

Tax year runs April 1 to March 31

The taxpayer is the owner as of January 1

In sales, parties commonly agree to prorate by contract

2. Proration Method

Proration = Annual Tax × Occupancy Days ÷ Days in Fiscal Year

Occupancy Days are typically from the closing date to March 31

Whether the closing date counts for the buyer must be stated in the contract

Proration is a private settlement the municipality’s taxpayer record usually does not change midyear

3. Example

Assumptions Annual total ¥210,000 (¥180,000 Fixed Asset Tax and ¥30,000 City Planning Tax) Closing on September 1 Fiscal year 365 days Buyer bears from the closing date

Occupancy Days 212 (Sep 1–Mar 31)

Proration = ¥210,000 × 212 ÷ 365 = ¥121,972.6…

Rounded to the nearest yen the buyer reimburses the seller ¥121,973

Note service charges and reserve funds are settled separately

Takeaway

Remember the key anchors 1.4%, up to 0.3%, January 1, and day‑based proration. Use “Annual Tax × Occupancy Days ÷ Fiscal‑Year Days,” confirm the current year’s bill, and write the rules for the closing date and rounding in the contract to avoid disputes.