2026 TAX GUIDE
What is the 2026 basic deduction?
The basic deduction is an income deduction available to the taxpayer; its amount depends on total income.
Direct answer
How much is the 2026 basic deduction?
Taxable income equals income minus the basic deduction and other deductions. Higher-income bands can receive a smaller deduction.
The band uses income, not gross salary
Employees first subtract the employment-income deduction, then apply the total-income band to the remaining employment income.
Why does ¥8m salary receive ¥670k?
A ¥8m salary leaves ¥6.1m employment income. That falls in the ¥4.89m–¥6.55m band: the ¥620k base amount plus a ¥50k transitional addition.
When other income exists
Side-business or other income can change total income and the applicable band. The basic deduction is separate from dependent and social-insurance deductions.
Basic deduction by total income
| Total income | Basic deduction |
|---|---|
| Up to JPY 4.89m | JPY 1.04m |
| Over JPY 4.89m–6.55m | JPY 670k |
| Over JPY 6.55m–23.5m | JPY 620k |
| Over JPY 23.5m–24m | JPY 480k |
| Over JPY 24m–24.5m | JPY 320k |
| Over JPY 24.5m–25m | JPY 160k |
| Over JPY 25m | JPY 0 |
Worked examples
- A JPY 5m salary leaves JPY 3.56m after the employment-income deduction, so it falls in the JPY 1.04m basic-deduction band.
- A JPY 8m salary leaves JPY 6.1m employment income, so it falls in the JPY 670k band.
- The basic deduction is separate from dependent and social-insurance deductions.
Official source and check date
Rules checked: 31 August 2026 · Calculator logic updated: 4 September 2026 · Page updated: 4 September 2026
National Tax Agency: 2026 basic-deduction reformFrequently asked questions
How does this affect take-home pay?
The calculator applies the same 2026 engine to taxes and employee insurance.
Is annual income enough for an exact answer?
No. Age, dependents, prefecture, bonuses, and standard remuneration also matter.
Where can I verify the figures?
Inline links point to the NTA, MHLW, Japan Pension Service, and other official sources.
What if rules change?
The update history records the effective date and rule version.
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