Dependent System
扶養控除 (Fuyō Kōjo)
Japan's dependent system gives you a tax discount for financially supporting family members who can't fully support themselves — a spouse, children, parents, or siblings. The key is that the dependent must earn below specific income thresholds, or the deduction disappears entirely.
"Imagine you have a family member staying at your house who can't pay their own bills. The government says: 'We see you're covering them — here's a discount on your tax bill to compensate.' But if that family member starts earning too much, the government says the discount is no longer justified and takes it away."
The 'income walls' are the earnings thresholds where the discount shrinks or disappears. The dependent can earn a small amount without losing coverage, but crossing certain lines triggers a cliff-edge loss of benefits that can leave both you and the dependent worse off financially.
If your spouse earns under ¥1,030,000/year, you receive a deduction of ¥380,000 (reduced if your own income exceeds ¥9M).
If your spouse earns between ¥1,030,001 and ¥2,010,000, a sliding-scale deduction applies (up to ¥380,000 at the lower end, tapering to ¥0 above ¥2.01M).
For qualifying dependents other than a spouse:
• Age 16–18 or 23–69: ¥380,000
• Age 19–22 (student): ¥630,000
• Age 70+ (elderly): ¥480,000–¥580,000
Separate from tax. If a family member earns under ¥1,300,000/year (or ¥1,800,000 for over-60 or disabled), they can join your Shakai Hoken plan for ¥0 premium.
| Income Level (Dependent's Earnings) | Effect | Who It Affects |
|---|---|---|
| Under ¥1,030,000 / year | Spouse deduction: full ¥380k. No social insurance needed. | Spouse (Part-timer) |
| ¥1,030,001 – ¥1,060,000 | Spouse loses deduction; must pay income/resident tax themselves. Social insurance still not required. | Spouse |
| ¥1,060,001 – ¥1,300,000 | Spouse must pay their own income tax + resident tax. Social insurance still covered by your plan. | Spouse |
| ¥1,300,001+ | Spouse MUST leave your social insurance and enrol in their own Kokuho/Shakai Hoken. | Spouse |
| ¥1,060,001 – ¥2,010,000 | Spouse Special Deduction applies (sliding scale) | Spouse |
| Over ¥2,010,000 | All spouse deductions lost completely | Spouse |
| Under ¥480,000 (income) / ¥1,030,000 (gross) | Other dependents (children, parents): deduction applies | All dependents |
You can claim a dependent deduction for family members living outside Japan — for example, parents in your home country or a spouse who hasn't relocated yet. This is a valuable deduction many foreigners overlook.
Requirements:
1. The dependent must be a relative (parent, sibling, spouse, child, grandparent, etc.)
2. They must live with you economically (you remit money to support them)
3. Their annual income must be below the threshold (¥480,000 in total income)
Documentation required (all documents must be translated into Japanese):
• Proof of relationship (戸籍謄本, birth certificate, marriage certificate)
• Proof that you are sending money (overseas remittance records — bank transfer receipts for the year)
• Proof that they live abroad (passport copy, residence document)
How much you can deduct:
Same as domestic: ¥380,000 per dependent (¥630,000 for students aged 19–22, ¥480,000–¥580,000 for elderly 70+)
No tax deduction for children under 16 in Japan (since 2011 reform that introduced child allowance). However, they count for social insurance — they can be on your Shakai Hoken plan for free.
University students qualify for the enhanced ¥630,000 deduction (特定扶養親族). A family supporting a university student saves roughly ¥100,000–120,000 in taxes annually compared to the base deduction.
Parents aged 70+ living with you: ¥580,000 deduction. Living separately: ¥480,000. Both scenarios require that you are financially supporting them and their income is below the threshold.
If your dependent has a disability certificate (障害者手帳), an additional ¥270,000–¥750,000 deduction applies on top of the regular dependent deduction.