Student part-time work and being a dependent of your parents: the Reiwa 8 (2026) income thresholds, explained simply
Summer break is when students take on more part-time work. Many students and parents wonder, "How much can I earn?" Following the 2025 (Reiwa 7) reform, the FY2026 (Reiwa 8) tax reform raised the thresholds one more notch, and for the university-student age group (19–22) the practical dividing line has been reorganized around "¥1.5 million (social insurance)." The key point is that there are three kinds of threshold: (1) the student's own tax, (2) being a dependent of the parents (tax), and (3) social insurance. Since the amounts differ, it becomes easier to understand when you consider them separately.
・The student's own income tax: tax-free up to ¥1.78 million in salary (¥1.6 million for Reiwa 7).
・Being a dependent of the parents (tax): full amount up to ¥1.36 million in salary. Kept at the full amount up to ¥1.59 million under the special deduction for specified relatives, then phased down up to ¥1.97 million (for Reiwa 7 the figures were ¥1.23M / ¥1.5M / ¥1.88M).
・Social insurance: at annual income of ¥1.3 million you leave the parents' health-insurance dependent status, but for ages 19–22 this rises to ¥1.5 million from October 2025 (the tax reform does not move it).
・In other words, the social-insurance ¥1.5 million comes first. It is lower than the tax thresholds, so it is the real cap.
There are "three kinds" of threshold
Even though we say "income threshold" as a single phrase, it splits into three depending on whose burden, and of what, changes. Because they are easy to confuse, let's sort them out first.
The student's own tax
As earnings rise, the student starts to owe income tax and residence tax. For Reiwa 8, income tax is exempt up to ¥1.78 million in salary.
Being a dependent of the parents (tax)
When the child's income exceeds a certain level, the dependent deduction the parents had been using shrinks and the parents' tax rises. There is relief for ages 19–22.
Social insurance
When the child's annual income exceeds a certain level, they leave the parents' health-insurance dependent status and pay premiums themselves. This is a separate standard from tax.
[Threshold 1] The student's own tax: zero income tax up to ¥1.78 million for Reiwa 8
With the 2025 reform, the minimum employment income deduction was raised to ¥650,000 and the basic deduction was also raised, so for Reiwa 7 salary income was exempt up to ¥1.6 million[National Tax Agency, Reiwa 7 reform (in Japanese)]. The FY2026 (Reiwa 8) tax reform then raised the basic deduction (from ¥580,000 to ¥620,000 on the statutory basis) and the minimum guaranteed employment income deduction (from ¥650,000 to ¥740,000, including the special measure for the Reiwa 8 and 9 years), so from Reiwa 8 (income from January to December 2026) income tax is exempt up to ¥1.78 million in salary income (employment income deduction ¥740,000 + basic deduction ¥1.04 million = ¥1.78 million)[National Tax Agency, Reiwa 8 reform (in Japanese)].
The student can also use the working-student deduction (¥270,000 for income tax, ¥260,000 for residence tax). Eligibility requires salary income of ¥1.63 million or less (total income of ¥890,000 or less), among other conditions; this takes effect on December 1, 2026 and applies from the Reiwa 8 year[National Tax Agency No.1175 (in Japanese)]. However, because income tax for Reiwa 8 is already exempt up to ¥1.78 million, the working-student deduction mainly takes effect on residence tax. Residence tax has a lower threshold than income tax: salary income is exempt up to ¥1.1 million for FY2026 (income earned in 2025), and up to ¥1.19 million for FY2027, which is levied on income earned in 2026[Ministry of Internal Affairs and Communications, FY2026 local tax reform (in Japanese)]. Both are the figures for grade-1 municipalities; lower-grade municipalities set them a little lower (Kashiwa City: ¥1.065 million).
[Threshold 2] Being a dependent of the parents (tax): from Reiwa 8, university students keep the full amount up to ¥1.59 million
For a parent to claim the child as a dependent and receive the dependent deduction, the condition is that the child's total income is ¥620,000 or less (salary income of ¥1.36 million or less) (raised from ¥480,000 to ¥580,000 in the 2025 reform, and further from ¥580,000 to ¥620,000 in the FY2026 reform)[National Tax Agency No.1180 (in Japanese)]. Children aged 19 and over but under 23 are specified dependent relatives, and the deduction is a larger ¥630,000.
Furthermore, in 2025 a special deduction for specified relatives was newly created, so that even when a child aged 19–22 exceeds the dependent threshold, the parent's deduction does not suddenly disappear (the cliff is removed)[National Tax Agency, special deduction for specified relatives (in Japanese)]. From Reiwa 8, the range in which this deduction works has also widened to the full amount up to ¥1.59 million, and phased down up to ¥1.97 million.
| Salary income of the child (19–22) | Deduction the parent can receive |
|---|---|
| Up to ¥1.36 million | Dependent deduction (specified dependent) ¥630,000 |
| Over ¥1.36 million to ¥1.59 million | Special deduction for specified relatives ¥630,000 (full amount kept) |
| Over ¥1.59 million to ¥1.97 million | Special deduction for specified relatives (phased down) |
| Over ¥1.97 million | None (¥0) |
* The table above is for Reiwa 8 (income from January to December 2026). For Reiwa 7 (2025) it was "up to ¥1.23 million / over ¥1.23 million to ¥1.5 million / over ¥1.5 million to ¥1.88 million / over ¥1.88 million." The special deduction for specified relatives took effect in December of Reiwa 7 and has applied from the Reiwa 7 year-end adjustment and tax return. The child's age is judged as of December 31 of that year.
The "money threshold map" for university students (19–22)
When you line up the thresholds for the university-student age group along a single line, it looks like this (for Reiwa 8). Because the tax thresholds have risen, the lowest — and therefore the first — threshold is social insurance at ¥1.5 million, and that is the real dividing point.
* High school students (16–18) are not eligible for the special deduction for specified relatives, and when salary exceeds ¥1.36 million (¥1.23 million for Reiwa 7) the parents' ordinary dependent deduction (¥380,000) is lost. Children under 16 have no dependent deduction (they are covered by the child allowance).
[Threshold 3] Social insurance: ¥1.3 million, and ¥1.5 million for university students
When the child's annual income exceeds a certain level, they leave the parents' health-insurance dependent status and pay premiums themselves (social insurance at the part-time workplace, or National Health Insurance and the National Pension). In principle the dividing line is annual income of ¥1.3 million[Ministry of Health, Labour and Welfare (in Japanese)].
- Students are outside the scope of the "¥1.06 million threshold" (the expansion of social-insurance coverage excludes students)
- For ages 19–22, from October 2025 the annual-income requirement for a health-insurance dependent is raised from ¥1.3 million to ¥1.5 million[Japan Pension Service (in Japanese)]
The tax dependent (deduction) and the social-insurance dependent are judged by different amounts and different standards. For Reiwa 8 the tax threshold has risen to ¥1.59 million (the cap for keeping the full amount), while social insurance stays at ¥1.5 million, so the social-insurance ¥1.5 million comes first. Once you exceed ¥1.5 million you newly incur your own social-insurance premiums (roughly ¥100,000-plus a year), and the rate at which your take-home pay grows slows down. For the social-insurance thresholds, also see The ¥1.06 million and ¥1.3 million thresholds.
Summary by age (being a dependent of the parents)
| Child's age (as of 12/31) | Parents' deduction |
|---|---|
| Under 16 | No dependent deduction (covered by the child allowance) |
| 16–18 | Ordinary dependent deduction ¥380,000 |
| 19–22 | Specified dependent ¥630,000 + special deduction for specified relatives (relief up to ¥1.59M/¥1.97M) |
| 23 and over | Ordinary dependent deduction ¥380,000 |
* In all cases, salary income of ¥1.36 million or less (for Reiwa 8; ¥1.23 million for Reiwa 7) qualifies for the dependent deduction (for ages 19–22, relief is extended above this via the special deduction for specified relatives). The deduction amounts are those for income tax. Residence tax deduction amounts are set separately. For details of the dependent deduction, see the Complete guide to the dependent deduction.
Things to watch out for with summer-break part-time work
- Earning in short bursts makes annual income jump easily: working intensively in summer tends to push your annual total over a threshold. Manage it by your projected annual figure.
- Watch withholding when working multiple jobs: when you work at two or more places, the withholding category (Column A / Column B) changes and too much can be withheld. Settle up (get a refund) through the year-end adjustment or a tax return.
- If income tax was withheld, a tax return often gets it back: if your annual income is within the tax-free line, the income tax that was withheld is refunded via a tax return.
- Share information within the family: because it affects being a dependent of the parents, sharing the child's projected annual income before the year-end adjustment prevents trouble.
Summary
FAQ
Up to how much can a student's part-time work be free of income tax?
For Reiwa 8 (income from January to December 2026), it is exempt up to ¥1.78 million in salary income (employment income deduction ¥740,000 + basic deduction ¥1.04 million). For Reiwa 7 it was ¥1.6 million. For residence tax, salary income is exempt up to ¥1.1 million for FY2026 (income earned in 2025), and up to ¥1.19 million for FY2027, which is levied on income earned in 2026 (both are the grade-1 figures; lower-grade municipalities set them a little lower).
Up to how much can a child be kept as a dependent of the parents?
For Reiwa 8, up to ¥1.36 million in salary income it is the dependent deduction (specified dependent ¥630,000 for ages 19–22). For ages 19–22, thanks to the special deduction for specified relatives, the parents' deduction stays at the full ¥630,000 up to ¥1.59 million in salary, and a deduction remains, phased down, up to ¥1.97 million (for Reiwa 7 the figures were ¥1.23M / ¥1.5M / ¥1.88M).
What is the special deduction for specified relatives?
It is a deduction newly created in 2025 whereby, even when a child aged 19 and over but under 23 exceeds the dependent threshold, the parent's deduction does not suddenly disappear. For Reiwa 8, even above ¥1.36 million in salary the parent receives the full ¥630,000 up to ¥1.59 million, and a phased-down deduction up to ¥1.97 million. You claim it through the year-end adjustment or a tax return.
What happens to social insurance when a university student exceeds ¥1.3 million?
Students are outside the scope of the ¥1.06 million threshold. In principle, at annual income of ¥1.3 million you leave the parents' health-insurance dependent status, but for ages 19–22 the requirement was raised to ¥1.5 million from October 2025. Once you exceed ¥1.5 million you pay premiums yourself.
Should I use the working-student deduction?
With salary income of ¥1.63 million or less (total income of ¥890,000 or less), you can receive a deduction of ¥270,000 (¥260,000 for residence tax); it takes effect on December 1, 2026 and applies from the Reiwa 8 year. However, since for Reiwa 8 the student's own income tax is already exempt up to ¥1.78 million, it mainly takes effect on residence tax. It is a system separate from being a dependent of the parents.
Reference links (sources)
This article is based on the following official materials (neutral, primary sources). Because amounts and requirements are subject to reform, please check the latest information before filing. The details of residence tax and social insurance differ by municipality and by the insurer you belong to.
- National Tax Agency — On the review of the basic deduction for income tax under the Reiwa 7 tax reform, etc. (in Japanese)
- National Tax Agency — Special deduction for specified relatives (Reiwa 7 reform) (in Japanese)
- National Tax Agency — No.1180 Dependent deduction (in Japanese)
- National Tax Agency — No.1175 Working-student deduction (in Japanese)
- Japan Pension Service — Change to the annual income requirement for dependents aged 19 and over but under 23 (in Japanese)
- Ministry of Health, Labour and Welfare — Response to the "income threshold" (in Japanese)
* This article is general information, not tax or social-insurance advice. For individual determinations, please confirm with a tax office, your municipality, or the health insurer you belong to.
