Notification of revision of residence tax tax system (for fiscal 2023)

Contents of tax system revision of personal municipal tax, prefectural tax carried out from 2023 are as follows.

• About extension of mortgage loan deduction

• Extension of self-medication tax system (exception of medical expenses deduction)

• Revision of tax exemption measures for minors following the revision of the Civil Code

Regarding the application of special tax credits (home loan credits) such as housing loans, those who moved in between January 2022 and December 2025 are newly eligible.

A When the consumption tax, etc. included in the amount of consideration or expenses related to the acquisition of a resident's house is the consumption tax, etc. to be imposed at a tax rate of 8% or 10%.
B The amount of consumption tax included in the amount of consideration or cost related to the acquisition of a resident's house, etc. is 10%, and within a certain period (in the case of new construction, from October 2020 to September 2021, in the case of acquisition, extension or renovation of a house, etc., from December 2020 to November 2021).

Effective December 31, 2026, the application period for the special provision for medical expenses deduction, which is applied when purchasing switch OTC drugs (those requiring guidance and over-the-counter drugs that have been diverted from medical use), has been extended by five years.
In addition, the scope of drugs subject to deduction has been revised. For details, please refer to the Ministry of Health, Labour and Welfare's website "Self-medication tax system (income deduction system for specific drug purchases) (external site)".

Due to the reduction of the adult age under the Civil Code, those aged 18 or 19 as of January 1, 2023 will not be minors in determining whether municipal tax and prefectural tax will be imposed. .
Minors are not taxed if the total income during the previous year is less than 1.35 million yen, but those who do not become minors have a total income during the previous year exceeding 450,000 yen (Note 1) Will be taxed if you do.

(Note 1) If there are dependent relatives, the range of total income during the previous year when municipal tax and prefectural tax are not levied is different.