Japan to Raise Income Tax Threshold to 1.68 M. Yen

Newsfrom Japan

Dec 11, 2025 16:22 (JST)

Tokyo, Dec. 11 (Jiji Press)–The Japanese government and ruling parties are considering raising the minimum taxable income threshold from the current 1.6 million yen to 1.68 million yen in 2026, it was learned Thursday.

The minimum taxable income level represents the combined amount of basic deductions, applied to all people with incomes, and employee income deductions, which salaried workers are eligible for.

The country is examining the idea of introducing a system to raise this threshold every two years in tandem with price increases, in order to help reduce taxpayers’ burden.

If the new system is introduced, the basic deduction and the minimum employment income deduction will each rise by 40,000 yen, raising the combined amount to 1.68 million yen.

The revision is expected to be included in the government’s upcoming tax system reform package for fiscal 2026.

[Copyright The Jiji Press, Ltd.]

Jiji Press