In Japan's year-end tax adjustment (nenmatsu chosei), employees receive a form usually called the "basic deduction application" (officially, the Application for Basic Deduction, combined with the Spouse Deduction, Specific Relative Special Deduction and Income Adjustment Deduction Applications). The two boxes people mix up most are "income received" (shunyu kingaku) and "income amount" (shotoku kingaku). Income received is your gross pay; income amount is what remains after the employment income deduction. With a salary of ¥5 million, you write ¥5 million and ¥3.56 million.
For 2026 (Reiwa 8), the basic deduction has been raised: people with total income of ¥4.89 million or less (a salary of up to ¥6,655,556 if salary is their only income) get ¥1.04 million. In the spouse section, a spouse earning up to ¥1.36 million qualifies for the spouse deduction, and up to ¥1.69 million for the special spouse deduction; both are ¥380,000 if your own salary is ¥10.95 million or less.
"Income received" vs "income amount": gross pay, and pay after the employment income deduction
In the income received box, write your estimated total gross salary for 2026, based on your latest withholding slip (gensen choshu-hyo) and payslips. If you are paid by two or more employers, write the total. The income amount is that figure minus the employment income deduction (at least ¥740,000 for 2026), worked out with the formulas in the form's "salary income calculation" box.[NTA: 2026 sample form (in Japanese)]
| Salary received (A) | How to get the income amount |
|---|---|
| Up to ¥740,999 | ¥0 |
| ¥741,000 to ¥2,190,999 | A − ¥740,000 |
| ¥2,191,000 to ¥2,199,999 | ¥1,451,000 to ¥1,456,000 (per the table in the calculation box) |
| ¥2,200,000 to ¥3,599,999 | A ÷ 4, rounded down to the nearest ¥1,000 (B) × 2.8 − ¥80,000 |
| ¥3,600,000 to ¥6,599,999 | B × 3.2 − ¥440,000 |
| ¥6,600,000 to ¥8,499,999 | A × 0.9 − ¥1,100,000 |
| ¥8,500,000 or more | A − ¥1,950,000 (minus the income adjustment deduction, if any) |
| Salary (income received) | Income amount | Basic deduction |
|---|---|---|
| ¥3 million | ¥2.02 million | ¥1.04 million |
| ¥5 million | ¥3.56 million | ¥1.04 million |
| ¥7 million | ¥5.2 million | ¥670,000 |
| ¥9 million | ¥7.05 million | ¥620,000 |
*Salary only, no income adjustment deduction. For ¥5 million: ¥5 million ÷ 4 = ¥1.25 million; ¥1.25 million × 3.2 − ¥440,000 = ¥3.56 million.
Basic deduction section: ¥1.04 million for total income up to ¥4.89 million in 2026
In the "decision" (hantei) box, tick the row that matches your estimated total income and write the amount next to it under "basic deduction". The National Tax Agency's 2026 form and sample use the raised amounts (¥1.04 million and ¥670,000).[NTA: 2026 year-end adjustment guide (in Japanese)]
| Total income | Salary, if salary only | Basic deduction | Category I |
|---|---|---|---|
| Up to ¥4.89M | Up to ¥6,655,556 | ¥1.04M | A |
| Over ¥4.89M to ¥6.55M | Up to ¥8.5M | ¥670,000 | A |
| Over ¥6.55M to ¥9M | Up to ¥10.95M | ¥620,000 | A |
| Over ¥9M to ¥9.5M | Up to ¥11.45M | ¥620,000 | B |
| Over ¥9.5M to ¥10M | Up to ¥11.95M | ¥620,000 | C |
| Over ¥10M to ¥23.5M | Up to ¥25.45M | ¥620,000 | (no spouse deduction) |
| Over ¥23.5M to ¥25M | — | ¥480,000 / ¥320,000 / ¥160,000 | (no spouse deduction) |
*Above ¥23.5 million the deduction falls in ¥500,000 steps to ¥480,000, ¥320,000 and ¥160,000, and is zero above ¥25 million. Salary figures assume no income adjustment deduction.
"Category I" is a code used to work out the spouse deduction; leave it blank if you are not claiming one. That the ¥1.04 million deduction applies only through 2027, and how much you get back in this year's adjustment, are covered in the ¥1.04 million basic deduction runs only through 2027.
If you have other income: box (2) takes only the total income amount
If you have side-job or pension income, write the total of those income amounts (after expenses or deductions) in box (2), "total income other than salary".
- Side-job sales, manuscript fees, etc.: receipts − necessary expenses
- Public pension: pension received − public pension deduction (at least ¥1.1 million at 65 or over, ¥600,000 under 65)
- Occasional income (e.g. a life insurance maturity payment): (receipts − costs − ¥500,000) × 1/2
Some income is left out. NISA dividends and gains, stock gains in a withholding-type tax-qualified account (tokutei koza) that you chose not to report, unemployment benefits and survivors' pensions are not part of total income.[NTA: Calculating total income, 2026 (in Japanese)]
Spouse section: up to ¥1.36 million is the spouse deduction, and the amount stays the same up to ¥1.69 million
Fill in the spouse's income received (their gross pay) and income amount the same way. If your spouse earns only salary, the income amount for pay between ¥741,000 and ¥2,190,999 is pay − ¥740,000.
| Spouse's salary (salary only) | Spouse's income | You: A (salary up to ¥10.95M) | B | C |
|---|---|---|---|---|
| Up to ¥1.36M | Up to ¥620,000 | ¥380,000 (spouse deduction) | ¥260,000 | ¥130,000 |
| Over ¥1.36M to ¥1.69M | Up to ¥950,000 | ¥380,000 | ¥260,000 | ¥130,000 |
| Over ¥1.69M to ¥1.74M | Up to ¥1M | ¥360,000 | ¥240,000 | ¥120,000 |
| Over ¥1.74M to ¥1.79M | Up to ¥1.05M | ¥310,000 | ¥210,000 | ¥110,000 |
| Over ¥1.79M to ¥1.84M | Up to ¥1.1M | ¥260,000 | ¥180,000 | ¥90,000 |
| Over ¥1.84M to ¥1.89M | Up to ¥1.15M | ¥210,000 | ¥140,000 | ¥70,000 |
| Over ¥1.89M to ¥1.94M | Up to ¥1.2M | ¥160,000 | ¥110,000 | ¥60,000 |
| Over ¥1.94M to ¥1.99M | Up to ¥1.25M | ¥110,000 | ¥80,000 | ¥40,000 |
| Over ¥1.99M to ¥2.04M | Up to ¥1.3M | ¥60,000 | ¥40,000 | ¥20,000 |
| Over ¥2.04M to ¥2.07M | Up to ¥1.33M | ¥30,000 | ¥20,000 | ¥10,000 |
| Over ¥2.07M | Over ¥1.33M | ¥0 | ¥0 | ¥0 |
*The first row is the spouse deduction; the rest are the special spouse deduction. If the spouse is 70 or over (born on or before 1 January 1957) and earns up to ¥1.36 million, the spouse deduction is ¥480,000 (B ¥320,000, C ¥160,000). Neither applies if your own salary exceeds ¥11.95 million (¥12.1 million with the income adjustment deduction).
- Part-time pay of ¥1.2 million: income amount ¥460,000. Tick "¥620,000 or less" for a ¥380,000 spouse deduction
- Part-time pay of ¥1.5 million: income amount ¥760,000. Tick "over ¥620,000 to ¥950,000" for a ¥380,000 special spouse deduction
- Part-time pay of ¥1.8 million: income amount ¥1.06 million. The "over ¥1.05M to ¥1.1M" column gives ¥260,000
Write the spouse's expected pay through December. If a bonus or overtime pushes it above your estimate, your employer can redo the adjustment until the end of January the following year (redoing and correcting the year-end adjustment). The spouse deductions overall are explained in the spouse deduction vs the special spouse deduction.
Specific relative and income adjustment sections: only for those who qualify
- Specific relative special deduction: fill in if you have a child aged 19 to 22 (or similar relative) with income over ¥620,000 up to ¥1.23 million (salary over ¥1.36 million up to ¥1.97 million). The deduction ranges from ¥630,000 to ¥30,000 depending on their income. See how to fill in the dependent deduction form for 2026
- Income adjustment deduction: fill in if salary covered by the adjustment exceeds ¥8.5 million and you are specially disabled, or have a dependent under 23 or a specially disabled family member. The deduction is (salary − ¥8.5 million) × 10%, up to ¥150,000. Not needed at ¥8.5 million or less (what the income adjustment deduction is)
- You: income received ¥8.97 million, income amount ¥6,973,000 (after a ¥47,000 income adjustment deduction) → basic deduction ¥620,000, Category I A
- Spouse: income received ¥1.24 million, income amount ¥500,000 → spouse deduction ¥380,000
- Child: specific relative with income of ¥1 million → specific relative special deduction ¥410,000
If you don't submit or make a mistake: the basic deduction is not applied, so reclaim it with a tax return
Your employer calculates the basic, spouse, specific relative and income adjustment deductions in the year-end adjustment from this form. You need to submit it for the basic deduction even if you have no spouse. If you don't submit it, or write gross pay as the income amount and get the deduction wrong, ask your employer to correct it or file a tax return the following year (year-end adjustment vs tax return).
Summary
- Income received is gross pay; income amount is pay after the employment income deduction. For ¥5 million: ¥5 million and ¥3.56 million
- For 2026 the basic deduction is ¥1.04 million for total income up to ¥4.89 million (salary up to ¥6,655,556), and ¥670,000 up to a salary of ¥8.5 million
- A spouse earning up to ¥1.36 million gives a ¥380,000 spouse deduction; up to ¥1.69 million the special spouse deduction is also ¥380,000, falling to zero above ¥2.07 million
- NISA gains, unreported withholding-account stock gains and unemployment benefits are not included in total income
- Submit the form even without a spouse. Omissions or errors can be fixed by end of January or with a tax return
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References (sources)
- National Tax Agency: How to do the year-end adjustment for 2026 (in Japanese)
- National Tax Agency: Sample of the 2026 basic deduction / spouse deduction / specific relative special deduction / income adjustment deduction application (in Japanese)
- National Tax Agency: Calculating total income, 2026 (in Japanese)
- National Tax Agency: 2026 year-end adjustment information page (in Japanese)
This article is general information based on National Tax Agency materials as of 4 November 2026. The salary-to-income conversions assume salary only; they differ if the specific expenditure deduction or income adjustment deduction applies. For individual cases, ask your employer's payroll staff or a tax office.