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This is an English translation of our Japanese tool page. The simulator works the same; the Japanese version is authoritative. Some dynamic labels may remain in Japanese.

Tax Reform Simulator｜FY2026 (Reiwa 8): How Much Does Your Take-Home Pay Change Before vs. After?

The FY2026 (Reiwa 8) tax reform raised the income-tax basic deduction and the employment-income deduction. This tool instantly estimates how much your income tax, residence tax and take-home pay change between "before the reform" and "after the reform (FY2026)". No sign-up required — your inputs are never sent anywhere and are calculated entirely on your device, and every calculation step is shown (figures are approximate).

For employees, if left blank, social insurance premiums are auto-estimated at about 15% of annual income. Sole proprietors should enter the annual total of National Health Insurance + National Pension (a rough estimate is fine).

This tool provides an approximate estimate for general information only and is not tax advice. It assumes you are single, with no dependents and no other income deductions, and treats social insurance premiums as identical before and after the reform. Residence tax is estimated as "10% income-based portion + ¥5,000 per-capita portion" (municipal differences and the finer points of the tax-exempt threshold are not reflected). The special deduction for specified relatives and various other deductions are not reflected. For exact figures, check the National Tax Agency's "Tax Return Preparation Corner" or consult your local tax office or a licensed tax accountant (zeirishi).

Key points of this reform (FY2026 / National Tax Agency primary source)

  • Basic deduction (income tax): raised to ¥1.04 million for total income of ¥4.89 million or less / ¥670,000 for over ¥4.89 million to ¥6.55 million / ¥620,000 for over ¥6.55 million to ¥23.5 million (previously a flat ¥480,000).
  • Minimum guaranteed employment-income deduction: ¥550,000 → ¥740,000 (FY2026 and FY2027).
  • The residence-tax basic deduction stays at ¥430,000 (unchanged). The minimum guaranteed employment-income deduction for residence tax rises from ¥550,000 to ¥650,000.
  • Applies to income tax for FY2026 onward (effective December 1, 2026). For salary-only earners, the tax-free line rises from ¥1.03 million to about ¥1.6 million.

Sources:

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