Main Changes in the Municipal Resident Tax and Tokyo Metropolitan Resident Tax for Fiscal Year 2023

Regarding the Extension of the Housing Loan Deduction Period and the Review of Deduction Limits

• The application deadline for the housing loan deduction has been extended by 4 years, and those who move in between January 1, 2022, and December 31, 2025, will be eligible.
• If there is an amount that could not be deducted from the special deduction for housing loan interest, it will be deducted from the Municipal Resident Tax and Tokyo Metropolitan Resident Tax within the range of 5% of the total taxable income for Income Tax (up to 97,500 yen).
• The income requirement for eligible individuals has been changed from a total income amount of 30 million yen or less to 20 million yen or less.

Note: The deduction period and borrowing limits may vary depending on the requirements.

About the Lowering of the Age of Majority

In the case of minors, under certain conditions, the Municipal and Tokyo Metropolitan Resident Tax will be exempt. With the lowering of the age of majority to 18 years old as of April 1, 2022, the applicable age has changed from under 20 years old to under 18 years old as of the assessment date (January 1).