Fixed Amount Reduction of Individual Resident Tax

Fixed Amount Tax Reduction

On December 22, 2023, the outline for the tax reform for fiscal year 2024 was decided by the Cabinet, and as part of measures to prevent our country's economy from reverting to deflation, a fixed reduction in resident tax for fiscal year 2024 will be implemented.

• For details on the fixed reduction of individual resident tax, please refer to the Ministry of Internal Affairs and Communications website.

• General Affairs Department Fixed Amount Tax Reduction Special Site(External Link)
• Ministry of Internal Affairs and Communications Created Leaflet (PDF 401.3KB)

• For details on the fixed amount reduction of Income Tax (national tax), please refer to the National Tax Agency website.

• National Tax Agency Fixed Amount Tax Reduction Special Site(External Link)

Eligible Individuals

Taxpayers with a total income amount related to the individual resident tax for the fiscal year 2024 of 18.05 million yen or less
(For those with only employment income, taxpayers with employment income of 20 million yen or less)

If you fall under the following categories, you will not be eligible.

• In the case of non-taxable individual resident tax
• In cases where only the individual resident tax uniformed tax and forest environment tax (national tax) are levied

Tax Reduction Amount

For the 2024 fiscal year individual resident tax, the total amount of the special deductions below will be deducted from the income portion of the taxpayer's liability.

Amount of Special Deduction

1. Person 10,000 yen
2. Deductible spouse or dependent (excluding those living abroad) 10,000 yen per person

• Note: If the total amount of special deductions exceeds the amount of income tax, the limit will be the amount of income tax.
• Note: For spouses living in the same household excluding deductible spouses, a deduction of 10,000 yen will be applied from the income tax amount for the fiscal year 2025.
• Note: The determination of the same household spouse and dependent relatives is generally based on the status as of December 31 of the previous year.

Payment Methods for Individual Resident Tax After Fixed Amount Tax Reduction

For those under special collection (salary deduction)

The tax amount after the fixed amount reduction will not be collected for the month of June in the 6th year of Reiwa, which is the start of collection, and will be deducted from salaries in 11 installments from the July amount to the amount for May of the following year.

For those using regular collection (payment slips, bank transfers, etc.)

From the payment amount for the first installment, the amount corresponding to the special deduction will be deducted, and you will pay the difference. If the deduction cannot be fully applied in the first installment, it will be deducted sequentially from the payment amounts of the second installment and thereafter.

For those with special pension collection (pension deduction)

From the pension deduction for October of the 6th year of Reiwa, the amount equivalent to the special deduction will be deducted, and the difference will be deducted from the pension. If it cannot be fully deducted from the October amount, it will be deducted sequentially from the special collection tax amount from December onwards.

Other Topics

• The income portion used to calculate the limit for hometown tax donations is the income portion before the fixed amount deduction, so there is no impact from the fixed amount deduction.
• If the tax reduction cannot be fully applied, a separate benefit (adjustment benefit) will be provided. For details on the benefits, please refer to the Cabinet Secretariat website "Benefits and Fixed Tax Reduction Measures for a New Economy."

• Cabinet Secretariat Website - Benefits and Fixed Tax Reduction Measures for a New Economy (External Link)