Japan Real Estate Capital Gains Tax in 2026: Long-Term vs Short-Term
Profit from the sale of land or buildings in Japan is generally taxed separately as real-estate capital gain. The tax base is the gain after allowable costs rather than the gross selling price.
Basic taxable-gain formula
NTA guidance calculates taxable gain as sale proceeds minus acquisition cost, selling expenses and any applicable special deduction. Building acquisition cost is adjusted for depreciation during the ownership period.
Five-year classification rule
The holding period is tested as of January 1 of the year of sale. More than five years is treated as long-term; five years or less is short-term.
Current rates
NTA guidance lists 15% national income tax plus 5% resident tax for long-term gains and 30% plus 9% respectively for short-term gains. Reconstruction surtax also applies to the national income-tax amount. Special rules may apply to qualifying owner-occupied homes.
Actual liability depends heavily on acquisition records, depreciation, selling expenses and applicable deductions. This article was reviewed against official NTA materials on September 2, 2026.