Types of Taxes

People living in Japan need to pay income and residence taxes depending on their income.
You will need to pay the motor vehicle tax if you own a car, light motor vehicle tax if you own a light car, property tax if you own land/a house, etc.

 

 

Income Tax (national tax)

Income tax is levied every year based on your income from January 1st to December 31st of the previous year.

Residence Tax (municipal/prefectural tax)

Residence tax is levied against individuals and businesses. It is calculated based on the previous year's income and owed to the municipality that you had a residence certificate registered with as of January 1.

Forest Environmental Tax (national tax)

The Forest Environmental Tax is a tax paid to the government for the purpose of stably securing local financial resources necessary for forest development, management, etc. Beginning in FY2024, an annual tax of 1,000 yen per person, together with the inhabitant tax, will be levied on those who have a domicile in the country.

Ownership Transfer Tax (national tax)

This tax is levied when buying/selling real estate, inheriting property, or registering any other transfer of asset ownership at the Legal Affairs Bureau.

Real Estate Acquisition Tax (prefectural tax）

This tax is levied at the time of purchasing real estate (land/buildings).

Property Tax (municipal tax)

This tax is levied for land, buildings, depreciable assets, etc. that you hold as of January 1st every year.
This tax is collected by the municipality each asset is located in.

Automobile Weight Tax (national tax)

This tax is levied when registering an automobile for the first time, when having a vehicle inspection, etc. and is based off the vehicle's weight.

Ordinary Motor Vehicle Tax (environmental performance-based portion and type-based portion) (prefectural tax)

This tax is levied towards either those who have an ordinary automobile inspection certificate registered in their name as of April 1st or the actual user of the vehicle in question. This tax must be paid every year, in addition to an initial payment that is to be made at the time of acquisition, and is determined based on whether or not the vehicle is for personal or commercial use, as well as its engine displacement.

Light Motor Vehicle Tax (environmental performance-based portion and type-based portion) (municipal tax)

This tax is levied towards either those who have a light motor vehicle inspection certificate registered in their name as of April 1st or the actual user of the vehicle in question. This tax must be paid every year, in addition to an initial payment that is to be made at the time of acquisition.

Consumption Tax

Besides a few areas such as medical care, welfare, and education, the consumption tax is levied on almost all goods and services.

Other

Inheritance tax, gift tax, business tax, business office tax, city planning tax, alcohol tax, tobacco tax, gasoline tax, etc.