Insulating your windows, replacing the water heater, installing handrails — did you know that for home renovation and repairs, you can stack multiple national and municipal subsidies together with tax breaks? In 2026, the national "Housing Energy-Saving 2026 Campaign" alone offers up to 1,000,000 yen for window renovation, up to 1,000,000 yen for insulation retrofits, and up to 140,000 yen per unit for EcoCute heat-pump water heaters — depending on the combination, subsidies can exceed 1,000,000 yen. On top of that, you can also use renovation tax relief (income tax and fixed asset tax) and the long-term care insurance home-modification benefit. This article organizes the main renovation subsidies and tax breaks available in 2026 based on primary sources, covering the application process and points to watch.
The national flagship: the "Housing Energy-Saving 2026 Campaign" — four programs you can combine
The Housing Energy-Saving 2026 Campaign, run jointly by the Ministry of Land, Infrastructure, Transport and Tourism (MLIT), the Ministry of Economy, Trade and Industry (METI), and the Ministry of the Environment, is the umbrella name for the national subsidy programs targeting energy-saving renovations. It consists of the following four programs, and they can be combined in the same home by splitting the work by location.
| Program | Eligible work | Subsidy cap (approximate) |
|---|---|---|
| Advanced Window Renovation 2026 Program | Installing inner windows, replacing outer windows or glass, insulated doors | Up to 1,000,000 yen per home (fixed amounts per type of work; roughly half the eligible work cost as a guide) |
| Mirai Eco Housing 2026 Program | Insulation retrofits of windows, exterior walls, floors, etc., and installation of eco housing equipment (successor to the Child-Rearing Green Housing Support Program) | 400,000 to up to 1,000,000 yen per home (the older the home, the higher the cap) |
| Water Heater Energy-Saving 2026 Program | Replacement with high-efficiency water heaters such as EcoCute | Up to 140,000 yen per unit (including add-ons; up to 2 units for detached houses) |
| Rental Multi-Unit Water Heater Energy-Saving 2026 Program | Replacement of small water heaters in rental apartment buildings (for owners) | Fixed amount per unit installed |
Combination example: a detached house (25 years old) renovating windows, water heaters, and insulation together
Inner and outer window renovation → about 500,000 yen from Window Renovation
Replacing 2 EcoCute units → up to 280,000 yen from Water Heater Energy-Saving
Floor and bathroom insulation → about 400,000 yen from Mirai Eco Housing
Estimated total subsidy: about 1,180,000 yen (amounts vary depending on the work)
- The contractor files the application. A contractor pre-registered as a "housing energy-saving support business" handles the grant application; the person ordering the work (you) cannot apply on your own. When choosing a contractor, always confirm whether they are a registered business under the energy-saving campaign.
- Applications are accepted with reservations no later than November 16, 2026, and grant applications no later than December 31, 2026. However, each program closes as soon as its budget is exhausted. In past years, the popular window renovation program has burned through its budget before autumn, so if you are considering it, contracting early is the safe choice.
- Subsidies in principle require the paperwork to be started before construction begins. Saying "I want to use the subsidy" after signing the contract or starting work may be too late.
Renovation tax relief — can be used together with subsidies
Separately from subsidies, certain renovations qualify for an income tax credit and a fixed asset tax reduction (the renovation promotion tax system). Six types of work are eligible: seismic retrofitting, barrier-free modification, energy-saving, multi-generation cohabitation, long-life quality housing upgrades, and child-rearing accommodation.
| Tax | Details |
|---|---|
| Income tax (investment-type relief) | 10% of the standard cost of the required work plus 5% of other work is credited against income tax. The maximum credit is 625,000 yen for seismic, energy-saving, cohabitation, and child-rearing work, and 600,000 yen for barrier-free work. A tax return the following year is required to claim the credit |
| Fixed asset tax reduction | Fixed asset tax for the fiscal year after the work is reduced: 1/2 for seismic, 1/3 for energy-saving, 1/3 for barrier-free, 2/3 for long-life quality housing. File with your municipality within 3 months of completing the work |
| Mortgage loan credit (additions and alterations) | Additions and alterations financed by a loan qualify for the mortgage loan credit. The FY2026 (Reiwa 8) tax reform extended the applicable period by 5 years, through December 31, 2030 |
- Subsidies and tax relief can be combined. However, when calculating the tax relief, the portion covered by subsidies is deducted from the work cost (the system prevents double-dipping).
- The income tax credit cannot be claimed through year-end adjustment. Even salaried employees must file a tax return in February–March of the following year. For the steps, see the tax-filing guide for company employees.
- The basics of the mortgage loan credit are explained in our mortgage loan credit guide.
Long-term care insurance home-modification benefit — a 200,000 yen allowance for handrails and step removal
If a family member has been certified as requiring support or long-term care, the home-modification benefit under long-term care insurance is available. Eligible work includes installing handrails, removing steps, switching to non-slip flooring, replacing doors with sliding doors, and converting to a Western-style toilet.
- The benefit ceiling is 200,000 yen. Of that, 70–90% (depending on income) is paid by long-term care insurance, so your out-of-pocket share is only 10–30%.
- Always consult your care manager before the work and file a prior application with your municipality. Applications after the fact are in principle not accepted.
- It can also be used in rental housing with the landlord's consent. If you move, or if your care-need level rises significantly, the allowance can reset under certain rules.
Do not forget municipal subsidies — seismic, energy-saving, three-generation cohabitation
In addition to the national programs, prefectures and municipalities often offer their own renovation subsidies. Typical menus include the following.
- Grants for seismic diagnosis and retrofitting: many municipalities offer free diagnosis or partial subsidies for retrofit costs for homes built under the old seismic standard (before May 1981).
- Top-up grants for energy-saving retrofits: some programs, like Tokyo's insulation retrofit grant for existing homes, can be stacked on top of the national campaign.
- Three-generation cohabitation and child-rearing support, vacant-house renovation, and roof and exterior wall repair grants, and other menus with a strong local flavor.
The shortcut is to search "your municipality name + renovation subsidy" and check the official site, or ask your renovation company which programs can be combined. National and municipal programs often stop accepting applications partway through the fiscal year, so research them working backwards from your planned construction date.
Application process and points to watch
- Research the programs before finalizing the work. Eligible work specifications (such as insulation performance grades) are set in advance, so the most important thing is to tell the contractor "I want to use the subsidy" at the estimate stage.
- Choose a registered contractor. Only registered businesses can apply under the Housing Energy-Saving Campaign. Get multiple estimates and check their track record with subsidy applications.
- Contract, start, and complete the work. The contractor handles the application procedures. The subsidy is returned to you via the contractor (as a discount or bank transfer), so confirm the refund method in writing before signing the contract.
- Handle the tax procedures yourself. For income tax, file a tax return the following year; for fixed asset tax, file with your municipality within 3 months after the work. Ask the contractor to issue the required documents, such as the certificate of addition/alteration work.
Beware of door-to-door sales pitches claiming "subsidies are available." Every year there are reports of inspection scams and solicitations that falsely describe ineligible work as "effectively free with subsidies." Do not sign on the spot; always get estimates from multiple companies and check the eligibility requirements on the official sites. For opportunistic solicitation after disasters, see the points of caution in our summary of support programs available in disasters.
FAQ
Can I use it for a condominium?
Installing inner windows qualifies for Window Renovation as work on the exclusive-use area, and there are many examples of use in condominiums. However, windows may count as common areas, so you need to check the management bylaws and notify the management association. Water heater replacement is also eligible.
Summary
- The Housing Energy Saving 2026 Campaign offers up to ¥1 million for the window renovation subsidy, up to ¥1 million for Mirai Eco Housing, and up to ¥140,000 per unit for energy-saving water heaters. They can be combined if the work areas are separate.
- Registered contractors file the applications. Reservations run until November 16, 2026, and grant applications until December 31, 2026, but each program closes once its budget cap is reached.
- Renovation tax breaks consist of an income tax deduction and a fixed asset tax reduction. They can be combined with subsidies, and the income tax deduction requires a tax return (final return) the following year.
- Long-term care insurance covers home modification costs up to a benefit limit of ¥200,000, with a 10% to 30% copay. Consult your care manager and apply before the work begins.
- Local governments also offer additional grants for earthquake-proofing and energy saving. Most important is telling the contractor at the quote stage that you want to use subsidies.
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Sources: the official Housing Energy-Saving 2026 Campaign site (MLIT, METI, Ministry of the Environment), the official Mirai Eco Housing 2026 Program site, MLIT "Tax relief available when renovating a home," and long-term care insurance home-modification guidance from the Ministry of Health, Labour and Welfare and municipalities (as of July 29, 2026). Subsidy amounts, requirements, and deadlines may change. Always check the latest information on each official site before signing a contract. This article is general information; for individual tax decisions, consult a tax office, a licensed tax accountant, or another professional.