Revision of Housing Loan Deduction
*This is the same content as the previous year's revision, but with impact for 2023 (R05).
The deadline for application of the special deduction for income tax in the case of housing loans (before the revision: December 31, 2021) will be extended for four years to December 31, 2025. In addition, the following measures have been taken. This amendment is applicable to the case where a residence is acquired and used for residential purpose on or after January 1, 2022.
1) The maximum amount of the year-end balance of housing loans, etc. (maximum borrowing amount), the deduction ratio, and the deduction period in the case where a residence is acquired and used for residential purposes during the period from 2022-4 to 2025 are as follows.
2) The income requirement for those eligible has been reduced to 20 million yen or less (prior to the revision: 30 million yen or less).
3) The special credit is also available for the acquisition by an individual of a newly constructed house used for a residence with a floor area of 40 ㎡ or more but less than 50 ㎡, the construction of which was approved before December 31, 2023, or a house that has not been used since its construction. However, the special credit does not apply to years during which the total income taxable income for the year exceeds 10 million yen.
4) In the year end tax adjustment, a person who intends to apply for the special deduction for income tax in the case of having housing loans for a house to be used for residence on or after January 1, 2023 is not required to attach a certificate of the balance of loans related to housing acquisition funds to the "Application for Special Deduction for Housing Loans for Salaried Workers (給与取得者の住宅借入金等特別控除申告書)".
Please refer to the following page of the National Tax Agency for detailed information and special provisions for victims of the Great East Japan Earthquake. *Japanese only