How much can a single person earn before paying residence tax? The line that moved to ¥1.1 million — and the gap between cities
"Residence-tax-exempt household" (juminzei hikazei setai) may sound like a status reserved for elderly households, but if you live alone, the test looks only at your own income — making it a very real borderline for part-timers and single pensioners. The line was long quoted as "annual salary of ¥1 million", yet it moved to ¥1.1 million from fiscal 2026, and is expected to move again to ¥1.19 million next fiscal year. Another point that is easy to miss is the difference between municipalities: on the same income you can be exempt in one city and taxed in another. This article focuses on people living alone and walks through how to find your own line.
• For fiscal 2026, a single person is exempt at salary income of ¥1.1 million or less (grade-1 areas such as Tokyo's 23 wards).
• The line splits into three tiers by the municipality's grade: ¥1.1m / ¥1.065m / ¥1.03m.
• For pensioners aged 65 or over living alone, the benchmark is ¥1.55 million or less (grade-1 areas).
• The line is expected to rise to ¥1.19 million in fiscal 2027 (a further increase in the employment income deduction).
Why the line moved from ¥1 million to ¥1.1 million
Whether you owe residence tax is judged on your "total net income". For a person living alone (no dependents), both the per-capita levy and the income-based levy are exempt at total net income of ¥450,000 or less (grade-1 areas). If your only income is salary, adding back the employment income deduction turns this into the "salary line".
Until 2025 the minimum employment income deduction was ¥550,000, which produced the famous "¥1 million wall". The fiscal 2025 tax reform raised the minimum to ¥650,000, so from fiscal 2026 residence tax (levied on 2025 income) the line is ¥1.1 million[Edogawa Ward, FY2026 revision]. The deduction will rise in stages to ¥740,000, so the fiscal 2027 line (on income earned in 2026) is expected to be ¥1.19 million.
Same income, different city — three tiers by "grade"
It is little known, but the exemption line for the per-capita levy splits into three tiers by municipality, following the "grade" classification used in Japan's public assistance standards. The ¥450,000 base is the grade-1 figure; it is lower in grade-2 and grade-3 areas.
| Grade | Typical areas | Total net income for exemption | Salary benchmark (FY2026) |
|---|---|---|---|
| Grade 1 | Tokyo's 23 wards, government-designated cities, etc. | ¥450,000 or less | ¥1.1 million or less |
| Grade 2 | Prefectural-capital-class cities, etc. | ¥415,000 or less | ¥1.065 million or less |
| Grade 3 | Other municipalities | ¥380,000 or less | ¥1.03 million or less |
In other words, a single person earning ¥1.08 million is exempt in Tokyo's 23 wards but taxed in a grade-3 town — a reversal that hits frequently relocating single people hardest. The reliable way to find your municipality's grade is to check the residence tax exemption page of its official website[Matsudo City example].
The exemption line for the income-based levy (total net income ¥450,000) is uniform nationwide, so grade-2 and grade-3 areas have a zone where "the per-capita levy applies but the income-based levy does not" (for example, salary of ¥1.04-1.1 million in a grade-3 area). The burden there is roughly ¥5,000 a year — the per-capita levy plus the forest environment tax. Not zero, but not heavy either. For how residence tax works overall, see our guide to the residence tax system and calculation.
For single pensioners, the benchmark is ¥1.55 million
If your only income is a public pension, the same test applies with the public pension deduction in place of the employment income deduction.
| Age | Public pension deduction (minimum) | Exemption benchmark (grade-1 area) |
|---|---|---|
| 65 or over | ¥1.1 million | Pension income ¥1.55 million or less |
| Under 65 | ¥600,000 | Pension income ¥1.05 million or less |
In grade-2 and grade-3 areas the lines are slightly lower, just as with salary. For the full picture of pensions and taxes, see taxes on pensions and filing a return.
What changes once you are exempt — side benefits bigger than the tax itself
For a single person below the line, the real gain is often not that the tax itself reaches zero (a few tens of thousands of yen a year) but that you qualify for support aimed at "residence-tax-exempt households". Cost-of-living cash benefits, the copayment brackets of the high-cost medical care system, reduced national health insurance premiums — many programs draw their line at exemption status.
The available benefits and reductions are listed in our guide to benefits and reductions for exempt households, and the household-level conditions in the conditions for a residence-tax-exempt household. When you live alone, "the household is just you", so your income alone makes the entire household exempt — the big difference from family households.
Holding income down just to stay under the line is usually a losing move. The tax that arises above the line is roughly 10% of the excess plus the per-capita levy, so your take-home pay does not flip into a loss. For part-timers, the social insurance thresholds (the ¥1.06 million and ¥1.3 million walls) matter far more for take-home pay, and should be the axis of any decision. Students living alone should also see student part-time jobs and parents' dependent status.
How to check your own line
What to do today
- Search your municipality's website for its residence tax exemption limits and confirm your grade (¥450,000, ¥415,000 or ¥380,000)
- Compare your expected salary for the year (January to December total) with the line (¥1.1m / ¥1.065m / ¥1.03m)
- If you are likely to land under the line, check the list of benefits and reductions for exempt households for programs you can use
Frequently asked questions
Does a single person earning exactly ¥1.1 million pay residence tax?
In a grade-1 area (Tokyo's 23 wards, government-designated cities, etc.), salary of exactly ¥1.1 million keeps total net income at or below ¥450,000, so you are exempt. The lines are ¥1.065 million in grade-2 and ¥1.03 million in grade-3 areas; exceed them by even one yen and the per-capita levy (about ¥5,000 a year) starts to apply.
Will the line change next year?
It is expected to. Because the minimum employment income deduction is being raised in stages to ¥740,000, the grade-1 exemption line for fiscal 2027 residence tax (levied on income earned in January-December 2026) is expected to be salary income of ¥1.19 million or less.
Where can I check whether I am exempt?
On the residence tax decision notice that arrives around June each year (some municipalities send nothing to exempt residents), or on a taxation certificate or non-taxation certificate issued by your municipality. Our article on how to read the residence tax decision notice explains the details.
Sources
Based on the following official sources. Exemption limits are set by municipal ordinance, so always confirm the figures published by your own municipality.
- Edogawa Ward: Revisions applying from fiscal 2026 residence tax (movement of the income "walls")
- Matsudo City: Salary income exempt from residence tax in fiscal 2026
- Chuo Ward: Main revisions to individual residence tax applying from fiscal 2026
- Ministry of Internal Affairs and Communications: How individual residence tax works
*This article is general information and does not guarantee individual tax calculations. Exemption is determined by prior-year income and municipal ordinance. Consult your municipality or a licensed tax accountant for specific decisions.
