Kyoto’s Vacant Home Tax: What Second-Home Buyers Need to Know (Starts 2030)
Kyoto City will tax homes where nobody lives from fiscal 2030. Who pays, how much, the exemptions and what it means for second-home buyers.
Source note · October 13, 2026
This guide is based on Kyoto City’s official page on the tax (updated August 21, 2026), the city’s ordinance and its August 2026 flyer. The start of taxation has been postponed once already and is now planned for fiscal 2030. Examples are illustrative; confirm your own case with Kyoto City’s Tax System Division (税制課, 075-222-3155).
Dreaming of a machiya or a quiet second home in Kyoto? There is a new cost to plan for. Kyoto City is introducing Japan’s first tax on homes where nobody lives, and it will apply to many holiday homes owned by overseas buyers.
The good news: it does not start until 2030, it is often smaller than people fear, and there are clear exemptions.
Key takeaways
- Starts fiscal 2030, based on how the home is used on January 1, 2030.
- Applies to homes nobody lives in as their main home, including holiday and second homes, in Kyoto City’s urbanization area.
- Often about half the home’s property tax, according to the city.
- Low-value buildings are tax-free: under ¥1 million for the first five years, then under ¥300,000.
- Exemptions cover business use, homes on the market (up to a year), historic buildings and some temporary absences.
The Tax at a Glance
| Official name | Non-Residential Housing Utilization Promotion Tax (非居住住宅利活用促進税, hikyojū jūtaku rikatsuyō sokushin zei) |
| Who pays | Owners of homes in the urbanization area where nobody lives as their main home: vacant houses, holiday homes, second homes |
| Starts | Fiscal 2030 (planned); postponed once from 2029 |
| How much | Often around half of the home’s property tax |
| Tax-free threshold | Building assessed under ¥1 million (first five years), then under ¥300,000 |
| Main exemptions | Business use, homes for rent or sale (up to one year), historic buildings, some temporary absences |
Why Kyoto Is Introducing It
Kyoto has a shortage of homes for young families, while many houses sit empty or are used a few weeks a year. The city says these homes reduce housing supply, create safety and fire risks and weaken communities. The tax nudges owners to live in, rent out or sell, and the revenue funds programs that put vacant houses back into use.
The ordinance passed in March 2022 and was approved nationally in March 2023. Taxation was planned for fiscal 2029, but the city postponed it a year for system development.
Who Has to Pay?
The owner of a non-residential home (非居住住宅) in Kyoto City’s urbanization area (市街化区域). Most of central Kyoto is in this area; many hillside and rural districts are not. The city looks at how the home is actually used, not just the resident register:
| Situation | Taxed? |
|---|---|
| Someone genuinely lives there as their main home, even without a resident registration (住民票) | No |
| Someone is registered there but actually lives elsewhere | Can be |
| A second home used for holidays (a person has only one main home) | Usually yes, unless an exemption applies |
Quick location check: on the building’s property tax statement (課税明細書), find the city planning tax base (都市計画税に係る課税標準額). If it is blank, the home is outside the urbanization area and the new tax does not apply.
How Much Is the Tax?
Two parts, both based on the property tax assessment:
| Part | How it is calculated |
|---|---|
| Building part (家屋価値割) | 0.7% of the building’s assessed value. |
| Land and floor-area part (立地床面積割) | Land assessed value per m² × total floor area × a rate that depends on the building’s value: 0.15% under ¥7 million, 0.3% from ¥7 million to under ¥9 million, 0.6% from ¥9 million. |
Two Examples
Kyoto City’s example
Empty condo, 40 years old- 60 m² floor area
- Building value ¥2.7 million
- Land ¥68,000 per m²
≈ ¥25,000 a year
¥18,900 + ¥6,120, compared with about ¥50,000 in property tax and city planning tax.
Our example
Older machiya- 100 m² floor area
- Building value ¥800,000
- Land ¥250,000 per m²
¥0 for five years, then ≈ ¥43,100 a year
¥5,600 building part + ¥37,500 land and floor-area part.
For older homes in central locations, most of the tax comes from the land and floor-area part. These figures are illustrations: with the property tax statement, you can estimate the real amount using the city’s simulation spreadsheet.
Exemptions, Reductions and Deferrals
| Type | When it applies |
|---|---|
| Not taxed | Business use, or planned business use within a year (declared) · Offered for rent or sale (declared; up to one year without a contract) · Exempt from property tax · Landscape-important or other designated historic buildings · Below the tax-free threshold |
| Reduced on application | Damage from disaster, fire or theft · Owner on public livelihood assistance · Unusable due to public acquisition or city planning · Temporarily empty because of a job transfer or overseas posting (up to five years), hospital or care-home stay, escape from domestic violence, caring for a relative, or renovation |
| Deferred | If the owner, or the resident, dies and the home becomes empty: up to three years, waived if the home is put back into use in that time |
Short-stay rentals: a licensed rental run as a business should generally count as business use, but the city decides case by case. Confirm before relying on it. See our minpaku guide for how licences work.
What It Means If You Are Buying in Kyoto
- Budget for it from day one if the home will be a holiday house, alongside property tax, insurance and maintenance.
- Check the location. A home just outside the urbanization area is not taxed, but may have stricter building rules. See Japan Zoning Explained.
- Look at the building value. Homes under ¥1 million pay nothing for five years, but the land part can be significant afterwards.
- Decide how you will use it: renting, running a business or living there all change the picture.
- Arrange a tax representative if you live overseas. See our paperwork guide.
- Expect changes: the ordinance will be reviewed every five years once taxation begins.
When Will Bills Arrive?
- Before 2030The city notifies likely taxpayers individually
- Jan 1, 2030How the home is used on this date decides the first year
- Fiscal 2030Pay in four instalments: end of June, August, October and January
The Bottom Line
Kyoto’s new tax will not stop you owning a home in the city, and for many properties it will be a modest yearly cost. But it is a real cost for holiday homes, and it rewards buyers who plan how a home will be used. Factor it into your budget now, check the location and assessed values, and ask about exemptions before you buy.
Disclaimer: General information only, based on Kyoto City’s published information as of October 2026. Not tax or legal advice. Details may change before taxation begins; confirm your situation with Kyoto City or a qualified tax professional.
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