Japan revises the income tax Basic Deduction (基礎控除) and Employment Income Deduction (給与所得控除) — effective December 1, 2025, applying to income tax from the Reiwa 7 (令和7) year onward
Source material is a Japanese government announcement (in Japanese); this page is a summary.
Under the Reiwa 7 (令和7, FY2025) tax reform, Japan revised the income tax basic deduction (基礎控除) and the employment income deduction (給与所得控除), and newly created the special deduction for specified relatives (特定親族特別控除). In principle the revision took effect on December 1, 2025 (令和7年12月1日) and applies to income tax from the Reiwa 7 year onward.
Key facts
| Effective date and application | Took effect on December 1, 2025 (令和7年12月1日) — in principle applies to income tax from the Reiwa 7 (令和7) year onward |
|---|---|
| Basic deduction amounts (after revision) | Total income (合計所得金額) 132万円 or less: 95万円 / over 132万円 up to 336万円: 88万円 / over 336万円 up to 489万円: 68万円 / over 489万円 up to 655万円: 63万円 / over 655万円 up to 2,350万円: 58万円 (before revision: a uniform 48万円) |
| From the Reiwa 9 year onward and add-on rules | The 88万円, 68万円 and 63万円 brackets become 58万円 from the Reiwa 9 (令和9) year onward. Where total income is 655万円 or less, the amount is 58万円 plus 37万円, 30万円, 10万円 or 5万円 respectively, and this add-on applies only to residents (居住者). There is no revision to the basic deduction where total income exceeds 2,350万円 |
| Employment income deduction (給与所得控除) | Minimum guaranteed amount 55万円 → 65万円 |
| Income requirements for dependent relatives etc. | Total income requirement for dependent relatives (扶養親族) and same-livelihood spouses (同一生計配偶者): 48万円 or less → 58万円 or less / Requirement on the combined gross income etc. of a child living on the same livelihood as a single parent (ひとり親): 48万円 or less → 58万円 or less / Total income requirement for working students (勤労学生): 75万円 or less → 85万円 or less |
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Japan's National Tax Agency (国税庁) has published a dedicated page explaining the revision of the income tax basic deduction (基礎控除) and related changes under the Reiwa 7 (令和7) fiscal-year tax reform. ① The basic deduction has been revised from a uniform 48万円 (480,000 yen) to amounts that vary by bracket of total income (合計所得金額) — 95万円 (950,000 yen) where total income is 132万円 (1,320,000 yen) or less; 88万円 (880,000 yen) where it is over 132万円 up to 336万円 (3,360,000 yen); 68万円 (680,000 yen) where it is over 336万円 up to 489万円 (4,890,000 yen); 63万円 (630,000 yen) where it is over 489万円 up to 655万円 (6,550,000 yen); and 58万円 (580,000 yen) where it is over 655万円 up to 2,350万円 (23,500,000 yen). Of these, the 88万円, 68万円 and 63万円 amounts become 58万円 from the Reiwa 9 (令和9) year onward, and there is no revision to the basic deduction where total income exceeds 2,350万円. According to the National Tax Agency's note, these amounts consist of the 58万円 basic deduction under Article 86 of the revised Income Tax Act (所得税法) plus the add-on under Article 41-16-2 of the revised Act on Special Measures Concerning Taxation (租税特別措置法); where total income is 655万円 or less, 37万円 (370,000 yen), 30万円 (300,000 yen), 10万円 (100,000 yen) or 5万円 (50,000 yen) respectively is added to 58万円, and this add-on applies only to residents (居住者). ② For the employment income deduction (給与所得控除), the minimum guaranteed amount has been raised from 55万円 (550,000 yen) to 65万円 (650,000 yen). ③ A special deduction for specified relatives (特定親族特別控除) has been newly created: where a resident has specified relatives (特定親族), up to 63万円 per specified relative is deducted from gross income etc. depending on that relative's total income. ④ Following the basic deduction revision, the total income requirement for dependent relatives (扶養親族) and same-livelihood spouses (同一生計配偶者) has been revised from 48万円 or less to 58万円 or less; the requirement on the combined gross income etc. of a child living on the same livelihood as a single parent (ひとり親) has been revised from 48万円 or less to 58万円 or less; and the total income requirement for working students (勤労学生) has been revised from 75万円 (750,000 yen) or less to 85万円 (850,000 yen) or less. In addition, following the employment income deduction revision, the minimum guaranteed amount included in necessary expenses under the special rule for computing business income etc. of home workers (家内労働者等) has been raised from 55万円 to 65万円. The National Tax Agency states that this revision changes withholding administration from 令和7年12月 (December of Reiwa 7) onward, including the year-end adjustment (年末調整) carried out in 令和7年12月, while withholding administration through 令和7年11月 (November of Reiwa 7) is unchanged.
Summaries below are factual notes based on government announcements and primary sources — not evaluations or opinions.
Summaries reflect national-level programs. Municipal (city/ward/town) programs may differ — confirm with the official desk before applying.
FAQ
When does it take effect?
According to the National Tax Agency (国税庁), in principle this revision took effect on 令和7年12月1日 (December 1, 2025) and applies to income tax from the Reiwa 7 (令和7) year onward. Accordingly, withholding administration from 令和7年12月 onward changes, including the year-end adjustment (年末調整) carried out in 令和7年12月, while withholding administration through 令和7年11月 is unchanged.
How much is the basic deduction?
It depends on total income (合計所得金額): 95万円 where total income is 132万円 or less, 88万円 where it is over 132万円 up to 336万円, 68万円 where it is over 336万円 up to 489万円, 63万円 where it is over 489万円 up to 655万円, and 58万円 where it is over 655万円 up to 2,350万円 (before the revision it was a uniform 48万円). Of these, the 88万円, 68万円 and 63万円 brackets become 58万円 from the Reiwa 9 (令和9) year onward, and there is no revision to the basic deduction where total income exceeds 2,350万円.
Do the withholding tax tables and other forms change as well?
Following the basic deduction revision, the necessary changes were made to the 「源泉徴収税額表」 (withholding tax table) for the Reiwa 8 (令和8) year onward and to the deduction amounts used in calculating withholding tax on public pensions etc. Following the employment income deduction revision, the 「年末調整等のための給与所得控除後の給与等の金額の表」 for the Reiwa 7 (令和7) year onward and the 「源泉徴収税額表」 for the Reiwa 8 year onward were revised.