Every June, employees receive a "residence tax determination notice (special collection tax amount determination notice)" through their employer (sole proprietors and others receive a tax payment notice at home). This is the "answer key" for the residence tax on the previous year's income, and it is your once-a-year chance to check whether Furusato Nozei and deductions have been correctly reflected. This article explains the columns you should look at in order, and summarizes the changes for FY Reiwa 8 (FY2026).
① Income column: Is the previous year's employment income correct (cross-check with your withholding slip).
② Income deductions column: Are the declarations for dependents, social insurance premiums, medical expense deduction, etc. reflected.
③ Tax credits column: Is Furusato Nozei (donation tax credit) roughly "donation amount − ¥2,000." The residence tax portion of the mortgage loan credit is also here.
④ Tax amount / payment amount: Income-based portion (municipal tax 6% + prefectural tax 4%) + per-capita levy, etc. (standard ¥5,000 a year = per-capita levy ¥4,000 + forest environment tax ¥1,000)[Ministry of Internal Affairs and Communications (in Japanese)]. This is withheld in 12 installments from June to the following May.
What is this notice, exactly? (Taxed on the previous year's income)
Residence tax is calculated by your municipality based on your income from January to December of the previous year, and you pay it from June of that year to May of the next. Because employees have it withheld from salary (special collection), the new tax amount kicks in from the June pay statement. The mechanics of the calculation itself are explained in detail in How residence tax works and is calculated.
People whose income rose last year due to a pay raise, more overtime, a side business, etc. will see their residence tax go up from this June. Conversely, those who took leave or retired last year will see it go down. The reason a second-year new graduate feels "my take-home pay dropped" is that in the first year there was no prior-year income, so residence tax was zero.
How to read the notice (checkpoints by column)
| Column | Content | What to check |
|---|---|---|
| Income | Employment revenue / employment income (previous year) | Whether it matches the "payment amount" and "amount after the employment income deduction" on your withholding slip (from FY Reiwa 8, the minimum employment income deduction of ¥650,000 is reflected[Kitahiroshima City (in Japanese)]) |
| Income deductions | Social insurance premiums, life insurance premiums, dependents, basic deduction (for residence tax it stays at ¥430,000), etc. | Whether the deductions you submitted at year-end adjustment or in your tax return are missing. The medical expense deduction and the spousal deduction are also reflected here |
| Tax base / tax amount | Taxable income × income-based portion 10% (municipal tax 6% + prefectural tax 4%) | It is normal for the adjustment credit (a few thousand yen) to have been subtracted |
| Tax credits | Donation tax credit (Furusato Nozei), mortgage loan credit (residence tax portion), etc. | For the one-stop special provision, does it roughly match "total donations − ¥2,000"? For those who filed a tax return, it is the amount excluding the income tax refund portion (Furusato Nozei guide) |
| Per-capita levy / forest environment tax | Standard ¥5,000 a year = per-capita levy ¥4,000 + forest environment tax (national tax) ¥1,000 (from FY Reiwa 6)[Ministry of Internal Affairs and Communications (in Japanese)] | There may be a local government's own add-on (as in Yokohama City, etc.) |
| Payment amount (monthly) | The annual tax amount split into 12 installments from June to the following May | It is normal for the June installment alone to be slightly higher due to rounding adjustment |
Changes for FY Reiwa 8 (FY2026)
- The minimum guaranteed employment income deduction rises to ¥650,000 (from ¥550,000): It applies to income for Reiwa 7 and is reflected for the first time in this June's notice (for FY Reiwa 8)[Kitahiroshima City (in Japanese)]. Even with the same employment revenue, some people's income falls and their residence tax drops slightly.
- The basic deduction stays put at ¥430,000: The income tax basic deduction rose to ¥580,000–¥950,000, but residence tax is unchanged[Osaka City (in Japanese)]. This is why it can happen that "income tax is zero, yet residence tax still applies."
- The creation of the special deduction for specified relatives (children of college-student age, up to ¥450,000) is also reflected in residence tax from FY Reiwa 8.
- The statement of the fixed-amount tax reduction, which was limited to FY Reiwa 6, has ended.
If you find a mistake / common "not reflected" cases
- Furusato Nozei is not reflected: A missed application for the one-stop special provision or a late submission is typical. You can recover it by filing a tax return (refund claim). Note that for those who filed a tax return, the benefit is split between the income tax refund and the residence tax credit, so looking only at the residence tax column can make it look smaller.
- Missing dependents / deductions: Such as forgetting to submit year-end adjustment documents. This too can be corrected by filing a tax return (within 5 years).
- For clear errors, contact the tax department window of the municipality listed on the notice.
FAQ
When does the residence tax determination notice arrive?
Employees (special collection) receive it through their employer every year from late May to June. Sole proprietors, retirees, and others under ordinary collection receive a tax payment notice at home in early June, and pay it in a lump sum or in four installments a year (June, August, October, and the following January).
Where do I check whether Furusato Nozei took effect?
Look at the "tax credits" column (donation tax credit). If you used the one-stop special provision, it roughly matches "total donations − ¥2,000." If you filed a tax return, there is an income tax refund portion, so the residence tax side is smaller by that amount.
What changed for FY2026 (FY Reiwa 8)?
The rise of the minimum employment income deduction to ¥650,000 is reflected in residence tax too, and the special deduction for specified relatives was created. On the other hand, the residence tax basic deduction stays put at ¥430,000. The per-capita levy, etc. continues at a standard ¥5,000 a year (per-capita levy ¥4,000 + forest environment tax ¥1,000).
Should I keep the notice?
Keeping it is recommended. It is often referred to as a "substitute for a taxation certificate" in procedures for mortgage loans and childcare fees, simulations of the Furusato Nozei cap, next year's funding plans, and more (a reissue can be substituted with a taxation certificate from your employer or local government).
Data sources
- Forest environment tax (¥1,000 a year, collected within the framework of the individual residence tax per-capita levy): Ministry of Internal Affairs and Communications — Forest environment tax and forest environment transfer tax (in Japanese)
- The revision of individual residence tax from FY Reiwa 8 (employment income deduction ¥650,000 / basic deduction held at ¥430,000 / special deduction for specified relatives): Kitahiroshima City (in Japanese) / Osaka City (in Japanese)
* The notice format and per-capita levy add-ons differ by local government. This article is general information; please confirm your individual tax amount with the municipality where you live.