2026 TAX GUIDE
What is the employment-income deduction in 2026?
It is an automatic expense allowance deducted from an employee’s salary income. The 2026 amount is calculated by income band.
Direct answer
How much is deducted from gross salary?
Salary income minus the employment-income deduction equals employment income used for income and resident tax.
Gross salary versus employment income
Gross salary is the amount paid by the employer; employment income is what remains after the automatic salary deduction. Tax rates are not applied directly to gross salary.
What changes at ¥5m, ¥8m, and ¥10m?
The applicable income band produces employment income. The examples below come from the calculator engine: ¥5m gross gives a ¥1.44m deduction and ¥3.56m employment income.
Where to check the withholding statement
The payment amount is gross salary and the amount after the employment-income deduction is employment income. Their difference is the deduction itself.
Employment income after deduction: working bands
| Salary income | Employment income after deduction |
|---|---|
| Below JPY 741k | JPY 0 |
| JPY 741k–2.191m | Income − JPY 740k |
| JPY 2.191m–3.6m | Income × 70% − JPY 80k |
| Over JPY 3.6m–6.6m | Income × 80% − JPY 440k |
| Over JPY 6.6m–8.5m | Income × 90% − JPY 1.1m |
| Over JPY 8.5m | Income − JPY 1.95m |
Worked examples
- At JPY 5m salary, the employment-income deduction is JPY 1.44m, leaving JPY 3.56m employment income.
- At JPY 8m salary, the employment-income deduction is JPY 1.9m, leaving JPY 6.1m employment income.
- At JPY 10m salary, the deduction reaches the JPY 1.95m cap, leaving JPY 8.05m employment income.
Official source and check date
Rules checked: 31 August 2026 · Calculator logic updated: 4 September 2026 · Page updated: 4 September 2026
National Tax Agency: Tax for salary earners (2026)Frequently 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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