Property Valuation for Inheritance Tax in Japan
Real estate is the most common and often the largest component of an estate in Japan. Understanding how property is valued for inheritance tax purposes is essential.
Land Valuation: Rosenka (路線価)
Land in Japan is valued for inheritance tax using the Rosenka (路線価) system — official land value published annually by the National Tax Agency. Rosenka values are typically 80% of market value.
Land Value = Rosenka (¥/㎡) × Land Area (㎡)
Rosenka values are published each July and can be looked up on the National Tax Agency website. Our calculator automatically looks up the rosenka value based on the address you enter.
Building Valuation
Buildings are valued based on the Fixed Asset Tax Assessment (固定資産税評価額), which considers the reconstruction cost minus depreciation. Key factors include:
- •Building structure (wood, steel, reinforced concrete)
- •Floor area (㎡)
- •Age and depreciation rate
- •Purpose (residential, commercial)
Building value is typically much lower than land value in Japan, as buildings depreciate significantly over time.
Japan's Multiple Land Value Systems
| System | Published By | % of Market | Use |
|---|---|---|---|
| Rosenka (路線価) | National Tax Agency | ~80% | Inheritance tax |
| Koji Chika (公示地価) | MLIT | ~100% | Reference market value |
| Fixed Asset (固定資産税評価額) | Municipality | ~70% | Property tax |
| Jika (実勢価格) | Market | 100% | Actual transactions |
Related Guides
This guide provides general information only. It does not constitute tax advice or tax filing services. Please consult a licensed tax professional (税理士) for accurate calculations.