[2025 Latest Edition] Don't Lose Money on Property Tax! Thorough Comparison of Cost-Effective Payment Methods | Credit Card, Mobile Payment & Electronic Money Tips
First, What to Consider When You Receive Your Property Tax Notice
Every year around April to June, you'll receive a "Property Tax and City Planning Tax Payment Notice" from the municipality where your home or real estate is located. While you may feel the joy of homeownership, many people feel a bit depressed when they see the amount written on the enclosed payment slip, thinking "this season has come again..."
Property tax is an important tax that supports the public services of the community we live in. Therefore, it's natural that we have an obligation to pay it, but it's completely natural to think, "If I have to pay the same amount anyway, I want to save even one yen and pay as smartly as possible!"
In the past, cash payment and direct debit were the mainstream, but the wave of cashless payments has also reached tax payments. Currently, the options have diversified surprisingly, including credit cards, smartphone payments (Pay payments), and electronic money.
However, with more options available, new questions have emerged: "Which payment method is ultimately the most advantageous?" "Is it true that credit cards charge fees?" "What are the benefits of paying with PayPay or Rakuten Pay?" "Are the tricks for paying taxes with nanaco still usable?"
Therefore, in this article, based on the latest information as of June 2025, we will comprehensively explain all property tax payment methods and thoroughly compare their respective merits and demerits. You should definitely find the "best payment method" that's optimal for your tax amount and lifestyle.
Let's Start with the Basics! Complete Overview of Property Tax Payment Methods
Before getting into specific comparisons, let's first understand the overall picture of what payment methods are currently available. Although it varies by municipality, there are mainly the following methods.
① Cash Payment (Financial Institutions, Post Offices, Convenience Stores)
The most traditional method of going to a counter with a payment slip and paying in cash.
- Advantages: No fees, peace of mind receiving a receipt on the spot.
- Disadvantages: The hassle of going during counter operating hours, no benefits like point rewards.
② Direct Debit
A method where the amount is automatically withdrawn from a pre-registered bank account on each payment due date.
- Advantages: Free of charge, no worry of forgetting to pay, automatically continues from the following year once set up.
- Disadvantages: No point rewards, receipts are often not issued (verify via passbook entry).
③ Credit Card Payment
A method of paying through the municipality's payment website or payment services such as F-REGI or Mobile Regist.
- Advantages: Earn card points, pay 24/7, can sometimes choose installment or revolving payment.
- Disadvantages: Payment processing fees based on tax amount are borne by the user.
④ Smartphone Payment (Pay Payment)
A method of scanning the barcode on the payment slip with apps like PayPay, Rakuten Pay, or au PAY.
- Advantages: Easy payment from home, fees generally free, potential benefits through campaigns.
- Disadvantages: Complex point reward rules (often excluded), payment limits exist.
⑤ Electronic Money Payment
A method of paying at convenience store registers using nanaco or WAON.
- Advantages: No fees, points can be earned indirectly through charging from specific credit cards.
- Disadvantages: Payment limits exist (may need to combine with cash), charging takes effort.
Among these options, we will now dive deep into "smartphone payment," "credit cards," and "electronic money," which particularly affect the degree of benefit.
[2025 Focus] Is Smartphone Payment (Pay Payment) Really Beneficial?
Smartphone payment is rapidly growing in users due to its convenience. Most municipalities now support it for tax payments. While the major appeal is that fees are generally free, caution is needed regarding point rewards.
PayPay Bill Payment
While many may think "paying taxes with PayPay earns points," unfortunately, since 2023, PayPay bill payment is basically excluded from point rewards (PayPay Step).
So, are there no benefits to paying with PayPay? No, that's not the case.
- Municipality-specific campaigns: Although less frequent, specific municipalities sometimes run limited-time campaigns like "Up to 20% cashback at eligible stores in XX city & bill payments." It's worth regularly checking your municipality's information.
- PayPay Money Lite can be used: If you register a credit card (former PayPay deferred payment), you can pay without charging.
- Convenience: Above all, the convenience of completing payment in a few taps from home is a major benefit.
Rakuten Pay Bill Payment
Rakuten Pay also supports bill payment. Rakuten Pay's strength lies in utilizing "Rakuten Points."
- Limited-time points can be used: You can apply limited-time points, which are often hard to use, toward property tax payments. It's a major benefit to avoid wasting points.
- Charge & Pay point rewards: As of June 2025, charging Rakuten Cash from Rakuten Card earns 0.5% point rewards. By using that Rakuten Cash for bill payment, you can indirectly receive 0.5% rewards. This is a point not to be missed.
au PAY, d Payment, etc.
au PAY and d Payment similarly support bill payment. While basic advantages and disadvantages are common with PayPay and Rakuten Pay, since each company runs unique campaigns and point programs, we recommend checking the service of the economic sphere you mainly use.
【Smartphone Payment Advantages/Disadvantages Summary】
Credit Card Payment - Key is Whether It Exceeds Fees!
Credit card payment is attractive for its high point reward rate. However, the biggest point of caution is **"payment processing fees."** Unlike smartphone payments, this is borne by users in almost all municipalities.
How Much Do "Payment Processing Fees" Cost?
While fee rates vary by municipality, they are generally around 0.8% to 1.0% (tax included) of the tax amount. For example, if the payment processing fee is 0.83% (tax included) in a municipality, paying 100,000 yen in property tax costs 830 yen in fees.
Identify the Break-Even Point!
Whether credit card payment is beneficial can be determined with a simple calculation.
Points Earned > Payment Processing Fees
If this formula holds true, it's worth paying with a credit card. Let's consider the above example (tax 100,000 yen, fee 830 yen).
With a 1.0% Reward Rate Card
- 100,000 yen × 1.0% = 1,000 points earned
- 1,000 points > 830 yen fee → 170 yen benefit!
With a 0.5% Reward Rate Card
- 100,000 yen × 0.5% = 500 points earned
- 500 points < 830 yen fee → 330 yen loss!
In other words, whether your credit card's point reward rate exceeds the municipality's payment processing fee rate is the entire basis for judgment.
What Are the Recommended High-Reward Cards?
To clear this break-even point, you need a "high-reward card" with a point reward rate of 1.0% or higher. Representative cards include the following.
- Rakuten Card (1.0%)
- JCB Card W (1.0%)
- Recruit Card (1.2%)
- PayPay Card (1.0%) *Conditions apply
If you have one of these cards, credit card payment becomes a strong option.
【Credit Card Payment Advantages/Disadvantages Summary】
Zero Fees with Point Rewards! Electronic Money Payment Savings Strategy
"I absolutely don't want to pay fees! But I want points..." The option that has the potential to fulfill this wish is convenience store payment using electronic money nanaco and WAON.
The core of this method lies in **"earning points through charging electronic money from specific credit cards."** While paying taxes with electronic money itself doesn't earn points, by earning points during the charging stage, you can indirectly benefit.
nanaco × Seven-Eleven
The representative credit card that earns points when charging is **"Seven Card Plus."** Charging nanaco from this card earns 1 nanaco point per 200 yen (0.5% reward rate).
*Note: In the past, many cards were eligible for point rewards for nanaco charging, but currently most are excluded.
As of 2025, Seven Card Plus is the most reliable option.
Charge nanacoThe charge limit per transaction for nanaco is 50,000 yen. If your tax amount exceeds 50,000 yen, you need to charge multiple times or utilize the center deposit.
Pay at Seven-Eleven registerPresent the payment slip and say "I'll pay with nanaco."
WAON × Ministop
The basic concept is the same as nanaco.
Prepare a credit card that earns points when chargingSetting up auto-charge with **"AEON Card Select"** earns 1 WAON POINT per 200 yen (0.5% reward rate). Also, if you're collecting JAL miles, **"JAL Card (Mastercard/JCB/Visa/TOKYU POINT ClubQ)"** charging is an option (charging to JMB WAON).
Charge WAONAuto-charge with AEON Card Select is convenient.
Pay at Ministop registerMinistop is one of the few convenience stores that supports bill payment with WAON.
【Electronic Money Payment Advantages/Disadvantages Summary】
Quick Reference Comparison Table by Payment Method - Advantages/Disadvantages
The content explained so far is summarized in one table. Check which method fits you best by comparing with your situation.
(*1) Most beneficial if reward rate exceeds fee rate. (*2) Strongest if municipality campaigns exist. Rakuten Pay Charge & Pay is also beneficial. (*3) For those who want points without fees.
What's the Best Payment Method for You? Recommendations by Type
Finally, we'll introduce recommended payment methods tailored to your personality and lifestyle in a diagnostic format.
【Type A】Maximum Value Priority! You Don't Mind a Little Effort
→ High-reward credit card payment or Electronic money payment
- For those with large tax amounts (where points exceed fees): Without hesitation, pay with a credit card with a reward rate of 1.0% or higher. The points earned will also be significant.
- For those with relatively small tax amounts or concerned about fees: If you have Seven Card Plus or AEON Card Select, charging & paying with nanaco or WAON is recommended. While it takes effort, you can reliably receive 0.5% rewards.
【Type B】Info-Savvy Who Doesn't Miss Campaigns! You Want to Enjoy Like a Game
→ Smartphone Payment
- Always check campaign information from your municipality or PayPay, Rakuten Pay, etc. If timing aligns, you can potentially achieve higher reward rates than any other method. Especially Rakuten Pay's "0.5% charging reward" + "using limited-time points" is a powerful combination.
【Type C】Hate Hassles! Safety and Reliability Come First
→ Direct Debit
- Once you complete the procedure, tax payment is automatically completed without doing anything else. While there are no benefits like points, the peace of mind of eliminating the biggest risk of "forgetting to pay" is an irreplaceable advantage. Ideal for busy people or those who want to simplify money management.
【Type D】Cash Advocate! Uneasy Without a Paper Receipt
→ Cash Payment (Convenience Store, Financial Institution)
- For those resistant to cashless payment or who must keep a receipt as proof of payment, traditional cash payment is best. Since convenience stores allow 24-hour payment, it's reassuring even for those busy during the day.
Summary
Property tax payment methods in 2025 have diversified more than ever before. There's no "absolute No.1" method, and "your No.1" changes depending on your tax amount, the credit cards you have, and how much effort you can put in.
Please organize your situation using this article as a reference.
- First, check the available payment methods on your municipality's website.
- For credit card payment, check the payment processing fee rate and compare it with your card's reward rate.
- Check the latest campaigns and point rules for smartphone payments and electronic money.
Based on this information, choosing the most "convincing" beneficial payment method for yourself is the best secret to avoiding regrets. Because it's a large annual expense (or four times), let's navigate it wisely and beneficially.