The withholding tax slip (year-end income statement from your employer) is a "report card" of your salary and taxes for one year. Your employer hands it to you between December and January, when the year-end adjustment is finished, and you use it in many situations — filing a tax return, mortgage loan screening, submitting it to a new employer, and more. But the numbers are lined up in a way that makes it easy to wonder, "Which one is my annual income?" or "How much tax did I pay?" This article clearly explains the meaning of the four amounts you should look at and how they relate, with sources from the National Tax Agency. It also covers what changed in the 2025 (Reiwa 7) and 2026 (Reiwa 8) revisions.
① Payment amount (支払金額) = your gross annual income (the total including allowances and bonuses).
② Amount after the employment income deduction (給与所得控除後の金額) = your annual income minus the "employment income deduction" (the allowance corresponding to expenses: ¥650,000 to ¥1.95 million for the 2025 tax year, ¥740,000 to ¥1.95 million for the 2026 tax year)[NTA No.1410 (in Japanese)].
③ Total of income deductions (所得控除の額の合計額) = the total of deductions you can claim according to your own circumstances, such as social insurance premiums, life insurance premiums, and the basic deduction[NTA (in Japanese)].
④ Amount of withholding tax (源泉徴収税額) = the final fixed amount of income tax (including the special reconstruction income tax) you paid over the year.
Roughly, the relationship is "(② − ③) × tax rate ≒ ④."
The meaning of the four amounts and how they relate
| Field | Meaning | Where it is used |
|---|---|---|
| ① Payment amount | The gross total (annual income) including salary, overtime pay, bonuses, and various allowances. It does not include commuting allowances (the tax-exempt portion) | The "annual income" you are asked for in loan screening, rental contracts, etc. is this |
| ② Amount after the employment income deduction | The "employment income" left after subtracting the employment income deduction from ①. The deduction amount depends on income: ¥650,000 to ¥1.95 million for the 2025 tax year (Reiwa 7), and ¥740,000 to ¥1.95 million for the 2026 tax year (Reiwa 8)[NTA No.1410 (in Japanese)] | The starting point for the tax calculation |
| ③ Total of income deductions | The total of the social insurance premium deduction, life insurance premium deduction, spousal deduction, dependent deduction, basic deduction, and so on[NTA guide (in Japanese)] | Shows how well your tax saving is working |
| ④ Amount of withholding tax | The one year's income tax + special reconstruction income tax fixed after the year-end adjustment | Becomes the basis for a tax return (refund) |
The flow of the calculation is "① payment amount → ② employment income → (② − ③) = taxable income → multiply by the tax rate to get ④." In other words, the larger ② and ③ are (= the more deductions there are), the smaller the tax in ④. Tax savings such as the life insurance premium deduction, iDeCo, and Furusato Nozei (this one mainly affects residence tax) take effect on ③ and beyond.
What changed in the 2025 (Reiwa 7) revision
The Reiwa 7 tax reform brought changes directly tied to the content of the withholding tax slip[NTA special reform page (in Japanese)].
- Increase in the basic deduction: from ¥480,000 to ¥580,000. Furthermore, for the 2025 tax year there is an add-on according to income, up to a maximum of ¥950,000 (for the 2026 tax year it was raised again, up to a maximum of ¥1.04 million).
- The minimum guaranteed amount of the employment income deduction: raised from ¥550,000 to ¥650,000 (¥740,000 for the 2026 tax year).
- Creation of the special deduction for specified relatives: the income requirement is eased for children of university-student age (19 to 22), etc.
As a result, the so-called "¥1.03 million wall" moved to ¥1.23 million to ¥1.6 million for the 2025 tax year, and for the 2026 (Reiwa 8) tax year it moves again to ¥1.36 million to ¥1.78 million (the ¥1.78 million figure is the ¥740,000 minimum employment income deduction plus the ¥1.04 million basic deduction). For details, see From the ¥1.03 million wall to the ¥1.23 million wall.
What changes on the 2026 (Reiwa 8) slip you receive in January 2027
The conclusion first. The form itself is not revised by the Reiwa 8 tax reform. The National Tax Agency's Q&A states plainly: "There is no revision of the 'withholding tax slip for employment income' accompanying the Reiwa 8 tax reform"[NTA Q&A Q3-3 (in Japanese)]. What changes is the amounts that go into the fields and the procedure by which your employer files the slip with the tax office.
Along with the renewal of the national tax system, from August 2026 the form of every statutory record filed with the tax office, including the withholding tax slip, changed[NTA procedure guide (in Japanese)]. The system was renewed on September 24, 2026; paper forms are in principle black and white, and the copy-for-your-records version of returns is discontinued[NTA on the system renewal (in Japanese)]. The new forms are read by machine, so the instructions require: "write with a black ballpoint pen without going outside the frame of the entry field," "do not write '￥' or '円' in the amount fields," and "do not write 'same as above' or ditto marks — write out every item accurately"[NTA instructions for entry (in Japanese)]. For payroll staff who fill in slips by hand, this is the practical change.
The "amount of the special deduction for specified relatives" field and the "特親" count
Since the 2025 (Reiwa 7) tax year, the slip has a field for the "amount of the special deduction for specified relatives" (特定親族特別控除の額). It is filled in only for people who went through the year-end adjustment, with the amount the employer deducted[NTA guide, Chapter 2 (in Japanese)]. There is also a "特親" box inside "number of dependents eligible for deduction, etc.", which holds the number of specified relatives[NTA instructions for entry (in Japanese)].
For the 2026 (Reiwa 8) tax year, a specified relative is a relative whose total income is over ¥620,000 and ¥1.23 million or less (salary only: over ¥1.36 million and ¥1.97 million or less)[NTA outline of the revision (in Japanese)]. If total income is ¥620,000 or less, or exceeds ¥1.23 million, the deduction cannot be claimed[NTA guide, Chapter 2 (in Japanese)]. The deduction runs in nine steps from ¥630,000 down to ¥30,000. The "区分" (classification) box carries the code matching the deduction amount.
| Total income of the specified relative | Amount of the special deduction | Code (resident / non-resident) |
|---|---|---|
| Over ¥620,000 to ¥850,000 | ¥630,000 | 10 / 11 |
| Over ¥850,000 to ¥900,000 | ¥610,000 | 20 / 21 |
| Over ¥900,000 to ¥950,000 | ¥510,000 | 30 / 31 |
| Over ¥950,000 to ¥1,000,000 | ¥410,000 | 40 / 41 |
| Over ¥1,000,000 to ¥1,050,000 | ¥310,000 | 50 / 51 |
| Over ¥1,050,000 to ¥1,100,000 | ¥210,000 | 60 / 61 |
| Over ¥1,100,000 to ¥1,150,000 | ¥110,000 | 70 / 71 |
| Over ¥1,150,000 to ¥1,200,000 | ¥60,000 | 80 / 81 |
| Over ¥1,200,000 to ¥1,230,000 | ¥30,000 | 90 / 91 |
Source: NTA, Guide to preparing and submitting the withholding tax slip for employment income and other statutory records for the 2026 tax year, Chapter 2[NTA guide, Chapter 2 (in Japanese)]. The same guide notes that the top row's "over ¥620,000" is to be read as "over ¥580,000" where the year-end adjustment was carried out on or before November 30, 2026.
The figures that move on the 2026 (Reiwa 8) slip
The Reiwa 8 tax reform raised the basic deduction further and also raised the minimum guaranteed amount of the employment income deduction. The reform takes effect on December 1, 2026 and applies to income tax for the 2026 tax year and onward[NTA special reform page (in Japanese)]. The figures on the slip move as follows.
| Item | 2025 (Reiwa 7) | 2026 (Reiwa 8) |
|---|---|---|
| Basic deduction | ¥580,000 to ¥950,000 | three tiers of ¥1.04 million / ¥670,000 / ¥620,000 (¥480,000, ¥320,000 or ¥160,000 where total income exceeds ¥23.5 million) |
| Minimum guaranteed employment income deduction | ¥650,000 | ¥740,000 |
| "Amount after the employment income deduction" (income of ¥1.9 million or less) | income − ¥650,000 | income − ¥740,000 |
| Income requirement for dependents and a spouse in the same household | ¥580,000 or less (salary ¥1.23 million or less) | ¥620,000 or less (salary ¥1.36 million or less) |
| Income requirement for a specified relative | over ¥580,000 to ¥1.23 million (salary over ¥1.23 million to ¥1.88 million) | over ¥620,000 to ¥1.23 million (salary over ¥1.36 million to ¥1.97 million) |
| Spouse eligible for the special spousal deduction | over ¥580,000 to ¥1.33 million (salary over ¥1.23 million to ¥2,015,999) | over ¥620,000 to ¥1.33 million (salary over ¥1.36 million to ¥2.07 million) |
| Income requirement for a working student | ¥850,000 or less (salary ¥1.5 million or less) | ¥890,000 or less (salary ¥1.63 million or less) |
| Single-parent deduction | ¥350,000 | still ¥350,000 (¥380,000 applies from the 2027 tax year) |
Source: NTA, "Outline of the revision of withholding income tax," April 2026, pages 1 to 5[NTA outline of the revision (in Japanese)].
Monthly withholding up to November 2026 is unaffected by the reform. The figures move from the December 2026 year-end adjustment. Note that if a relative newly meets the requirements for a dependent because of this reform, the "application for (change in) exemption for dependents of an employment income earner" must be filed[NTA outline of the revision (in Japanese)]. If your employer asks for it, submit it.
From January 2027, employers no longer file the slip with the tax office
On and after January 1, 2027, where an employer files the "salary payment report" (給与支払報告書) with the municipality, it is deemed to have filed the "withholding tax slip for employment income" with the district director of the tax office[NTA special page on deemed submission (in Japanese)]. The 2026 slips filed in January 2027 are the first year this applies[NTA Q&A Q3-3 (in Japanese)].
However, the duty to give you your copy does not change. The NTA writes: "The withholding tax slip issued to recipients must continue to be prepared and issued to every recipient"[NTA special page on deemed submission (in Japanese)]. As before, if you do not receive it you can ask your employer for it.
At the same time, from the 2026 tax year the scope of slips to be filed with the tax office widened to match that of the salary payment report. It covers all salary payments, except where the salary paid during 2026 to someone who left the company mid-year was ¥300,000 or less[NTA guide, Chapter 2 (in Japanese)].
The withholding tax slip issued to you does not show your My Number[NTA guide, Chapter 2 (in Japanese)]. A slip without the number is not defective. The number appears only on the copies filed with the tax office and the municipality.
Check the lower section too: social insurance premiums, dependents, mortgage loan
- Amount of social insurance premiums, etc.: the total of health insurance, employees' pension, and employment insurance withheld from your salary. The full amount is an income deduction.
- Deduction amount for life insurance premiums and earthquake insurance premiums: the portion you declared in the year-end adjustment. If you forgot to include it, you can recover it by filing a tax return.
- (Withholding) spouse eligible for deduction and dependents eligible for deduction: the application status of the spousal deduction and dependent deduction.
- Amount of the special credit for housing loans, etc.: the mortgage loan credit (from the second year onward it is applied in the year-end adjustment).
Situations where you need the withholding tax slip
| Situation | Point |
|---|---|
| Filing a return for a side job or a medical expense deduction | Transcribe the numbers into the return form (attaching it is not required. With e-Tax it is on-screen input only) |
| Changing jobs | Submit your former employer's withholding tax slip to your new employer (for combining in the year-end adjustment). See Taxes when changing or leaving a job |
| Mortgage loan, rental, nursery | Submit it as proof of income (what they look at is ① the payment amount) |
If you lose it, you can ask your employer (which has a duty to issue it even after you leave) to reissue it.
FAQ
Which field on the withholding tax slip shows my "annual income"?
It is the "payment amount." This is the gross total including salary, overtime pay, bonuses, and various allowances, and the annual income you are asked for in loan screening, etc. also refers to this figure (it does not include tax-exempt commuting allowances).
What is the "amount after the employment income deduction"?
It is the amount left after subtracting the "employment income deduction" (¥650,000 to ¥1.95 million for the 2025 tax year, ¥740,000 to ¥1.95 million for the 2026 tax year), which corresponds to an employee's expenses, from the payment amount, and it is called "employment income." Income tax is calculated by subtracting income deductions from this to get taxable income and then multiplying by the tax rate.
When do I receive it?
After the year-end adjustment is finished, your employer issues it together with the December pay statement or around January of the following year. When you leave a job, it is to be issued within one month after your departure. If you lose it, you can request a reissue.
From 2027 my employer no longer files the slip with the tax office. Does that mean I stop receiving one?
No, you still receive one. On and after January 1, 2027, filing the salary payment report with the municipality removes the need to file the withholding tax slip with the tax office, but the slip must still be prepared and issued to every recipient. If you do not receive it, you can ask your employer for it.
Do I need to attach the withholding tax slip to my tax return?
No (since April 2019, the obligation to attach it was abolished). However, because you transcribe the recorded content (payment amount, amount of withholding tax, social insurance premiums, etc.) when preparing the return form, you keep it on hand as you prepare it.
Data sources
- Employment income deduction (¥650,000 to ¥1.95 million for the 2025 tax year): NTA No.1410 Employment income deduction (in Japanese)
- Recorded content of the "total of income deductions" field: NTA Guide to preparing and submitting statutory records (in Japanese)
- Reiwa 7 revision (basic deduction ¥580,000 to ¥950,000, minimum guaranteed employment income deduction ¥650,000, special deduction for specified relatives): NTA On the review of the basic deduction, etc. (in Japanese)
- Basic deduction: NTA No.1199 Basic deduction (in Japanese)
- Reiwa 8 reform (basic deduction ¥1.04 million / ¥670,000 / ¥620,000, minimum guaranteed employment income deduction ¥740,000, income requirements for dependents): NTA On the increase in the basic deduction for income tax under the Reiwa 8 tax reform (in Japanese) / Outline of the revision of withholding income tax, April 2026 (PDF, in Japanese)
- No revision of the 2026 slip form, the national tax system renewal, and deemed submission (Q3-3): NTA Q&A on the Reiwa 8 tax reform (increase in the basic deduction, etc.) (PDF, in Japanese)
- New forms and instructions for entry (machine-read, black ballpoint pen, amount of the special deduction for specified relatives, 特親): NTA Withholding tax slip for employment income (and its summary table) (in Japanese) / Instructions for entry (PDF, in Japanese)
- Classification codes, scope of filing, and the omission of My Number: NTA Guide to preparing and submitting statutory records for the 2026 tax year, Chapter 2 (PDF, in Japanese)
- Deemed submission from January 2027: NTA Special page on the deemed submission rule for withholding tax slips (in Japanese)
* This article is general information, not tax advice. For individual decisions, please confirm with a tax office or a licensed tax accountant.
