Spousal Residence Right Valuation Simulator | How Much Is the Inheritance Tax Value?
Enter the building's inheritance tax value, structure type, years since construction, the number of years the spousal residence right will last, and the land value, and this free simulator instantly calculates the inheritance tax value of both the spousal residence right and the site use right.
The spousal residence right (Article 1028 of Japan's Civil Code, effective April 2020) lets a surviving spouse go on living rent-free in the home they were living in at the time of inheritance, as a right that is separate from ownership of the property. For inheritance tax purposes, the building's value is split into two parts and valued separately: the "spousal residence right" (the right to live there) and the "encumbered ownership" (the right to receive full ownership once the residence right ends), as set out in Article 23-2 of the Inheritance Tax Act.
Simulate from the building and land value, structure type, years elapsed, and duration of the right
What the spousal right of residence is
The spousal right of residence is a relatively new provision of Japanese law, in force since April 2020 under Article 1028 of the Civil Code. Consider a husband who dies leaving a wife living in the family home, with the house itself inherited by their child. Under the older rules she often faced a stark choice: move out, or take the house and give up her share of the savings. This provision separates the right to live in a property from the ownership of it, so that a surviving spouse can stay in the home and still receive a share of the cash.
For inheritance tax, the value of the building is split between the right of residence and the encumbered ownership — the right that will one day revert to full ownership — and each is valued separately under Article 23-2 of the Inheritance Tax Act. The land divides likewise into a right of use and the ownership of the site. The valuation depends on the building's construction type, its age and the duration of the right, and the formula is far from simple. Enter the figures here and this tool calculates the taxable value of both the right of residence and the right to use the site.
Sources used in this calculation
Statutory figures such as tax and insurance rates come from the public bodies listed below. They change when the law is revised, so please also check the primary source before relying on the result for an important decision.
- Inheritance-tax valuation of the spousal residence right (1.5x useful life, statutory-rate discount factor) — National Tax Agency (国税庁) Effective from 2020-04 ／ Last checked 2026-09-19
How to estimate the valuation
- Enter the building's assessed value Use the fixed asset tax valuation as it stands; it appears on the fixed asset tax notice.
- Choose the construction type Select timber, timber-frame mortar, metal frame, reinforced concrete and so on. This changes the useful life and therefore the valuation.
- Enter the age of the building The number of years from construction to the start of the succession.
- Enter the duration of the right For a lifetime right, use the spouse's life expectancy. For a fixed term, use that number of years.
- Enter the land valuation The split between the right of use and the ownership of the site is shown alongside.
Tips for getting more out of it
- The spousal residence right can't be asserted against third parties unless it's registered. It's a good idea to file the registration jointly with the building's owner soon after the inheritance takes place.
- The spousal residence right can't be transferred, and it disappears when the spouse passes away, at which point full ownership reverts to the owner. Because no inheritance tax is charged on the residence right at that point, it's often used as a strategy for reducing tax on the second inheritance.
- The longer the duration, the smaller the present value discount factor becomes, which lowers the value on the ownership side while raising the relative value of the spousal residence right. For a lifetime right, this effect is stronger the younger the spouse is.
- Entering a land value also estimates the site use right, but keep in mind that the spousal residence right itself is registered only against the building. The site use right is simply a right that arises automatically alongside it, tied to that building's spousal residence right.
Where this helps
Settling the approach to dividing the estate
Compare how much cash the surviving spouse can receive with and without the right of residence in place.
Looking ahead to the second succession
The right lapses on the spouse's death and attracts no tax at that point, which matters when weighing the long-term burden.
Building agreement among the heirs
Sharing concrete figures keeps a conversation about who receives what from turning on feelings alone.
Making professional advice go further
Knowing the rough valuation beforehand lets you spend limited advisory time on the conditions and the registration.
Terms of the spousal right of residence
- Spousal right of residence
- The right of a spouse who was living in the deceased's building at the start of the succession to continue living there without paying rent. Registering it makes it effective against third parties.
- Encumbered ownership
- Ownership of a building subject to a right of residence. Because it cannot be used freely while the spouse lives, it is valued below ordinary ownership.
- Right to use the site
- The right of use over the land beneath the building, corresponding to the right of residence. The land valuation splits between this and the ownership of the site.
- Duration
- The number of years the right runs. For a lifetime right, the life expectancy from the Ministry of Health, Labour and Welfare's complete life tables is used.
- Fixed asset tax valuation
- The value set by the municipality as the base for fixed asset tax. A building's inheritance tax valuation equals this figure.
- Second succession
- The next succession, arising when the surviving spouse dies. The right of residence lapses then and is not taxed.
Frequently Asked Questions
Side Note — Why the spousal residence right helps with the second inheritance
The spousal residence right was introduced in April 2020 partly out of concern for what happens at the "second inheritance," a concept shaped by Japan's aging population. When one spouse passes away first (the first inheritance) and the surviving spouse inherits full ownership of the family home outright, the entire value of that home ends up subject to tax again later, when the surviving spouse themselves passes away (the second inheritance).
Using the spousal residence right, the home can instead be split at the time of the first inheritance into a "spousal residence right" (the right to live there) and an "encumbered ownership" (the right to receive full ownership later), with the surviving spouse taking the residence right and the children, say, taking the ownership. Because the residence right disappears the moment the spouse passes away, there's nothing left of it to tax again at the second inheritance.
The upshot is that splitting the same home into a spousal residence right plus encumbered ownership, and having the children take the ownership share at the first inheritance, can shrink the total taxable estate at the second inheritance. It secures a place for the surviving spouse to keep living while also planning ahead for the tax burden, which is exactly the intent behind Japan's 2020 reforms to the Civil Code and inheritance tax rules.