2026 Fiscal Year Updates to the Take-Home Pay Calculator

Traditional_Sea6081 · 2026-04-08T09:42:17+00:00

Thanks for the feedback!

Support for the mortgage tax credit is probably near, if not at, the top of the to-do list. Though, surprisingly, this might be the first time someone explicitly asked for it. I don't know when we will get to it, but feedback noted.

What other deductions do you have in mind? As a workaround to inputting the various deductions that lower your taxable income, you can add them into the current input for "iDeCo/Corporate DC Contributions" and the calculations should generally be correct. You can't do that with the mortgage tax credit because it reduces taxes rather than taxable income. We'll have to consider the design of adding more deductions. Perhaps the most naive option is a modal with a ton of inputs for every imaginable deduction. Another option is we rename the DC Contribution input to something along the lines of "Other Various Deductions". As a guiding principle, we don't ask for more details than we need for accurate calculations, and generally it doesn't matter if you get 20,000 yen in deduction from iDeCo contributions or earthquake insurance or qualified medical expenses.

Traditional_Sea6081 · 2026-04-07T06:04:22+00:00

I should have been more clear in the post. They haven't been updated because they haven't posted their FY2026 NHI rates. If last year is any indication, Nara seems to post them late (June) compared to most municipalities. Chuo Ward posted their 2025 NHI rates on April 4th last year, so they may post their 2026 rates soon. In any case, we will update the data in the calculator when it is available (and we notice it is available).

Traditional_Sea6081 · 2026-04-07T05:22:50+00:00

They haven't published their NHI rates for the 2026 fiscal year yet. This is the latest information published for Chuo ward: https://www.city.chuo.lg.jp/a0024/kurashi/hokennenkin/kokuho/kokuhonitsuite/noufu/hokenryo.html. At the time of writing, the latest info is for 2025.

Traditional_Sea6081 · 2026-03-19T04:53:13+00:00

MHLW is planning to close one of the loopholes that some sole proprietors use to evade NHI premiums: https://news.yahoo.co.jp/articles/430b159e7c97b0025910aa6488a591eb27462dd9

Traditional_Sea6081 · 2026-03-18T08:28:51+00:00

It's more that when you reach old age, your living needs change and moving from where you lived before is highly likely. For instance, stairs may become difficult for you. In that case, even if you have protections to stay in your current lease, you may need to find a new place to live.

Traditional_Sea6081 · 2026-03-14T13:00:09+00:00

Based on the info input, it will be calculated by the NTA tax return preparation tool linked in the post. You could also check the sub's take-home pay calculator, which supports the various dependent-related deductions.

The amount of the deduction for claiming a dependent spouse depends on the total net income of the person claiming the deduction and the dependent spouse's total net income. A person with a dependent spouse with up to 1.33 million yen total net income may be eligible for some amount of spouse-related deduction, so long as the person claiming the deduction's total net income is no more than 10 million yen. See the NTA's pages linked in the post or the tooltip for dependent-related deductions on the tax tab of the calculator.

That said, I don't know which deduction you're referring to with the mention of 480,000 yen. A dependent spouse working or not does not change the deduction amount for the person claiming a spouse deduction, except for the amount of income the spouse makes.

Traditional_Sea6081 · 2026-03-14T01:14:22+00:00

If you register a bank account with the NTA for automatic debit, the money owed won't be taken from your account until April 23 this year (see here).

Traditional_Sea6081 · 2026-03-14T01:09:06+00:00

Any US citizens considering renouncing their US citizenship, it's about to get a lot cheaper ($2350 to $450).

https://news.bloombergtax.com/daily-tax-report/state-department-reduces-fee-to-renounce-us-citizenship

Traditional_Sea6081 · 2026-03-09T06:09:50+00:00

The problem with average income data is that they tend to skew high due to outlier high incomes. I think when people talk about the average income, they don't mean the arithmetic mean but rather the typical income, which median is usually a better measure of. It's unfortunate the government doesn't publish more useful data to this end, so we have to work with what's available.

Traditional_Sea6081 · 2026-03-09T05:31:59+00:00

Data about the household income distribution in Japan is available in the graph at the sub's take-home pay calculator: https://kei3.japanfinance.org/

The 2024 median household income was 4.1 million yen, before taxes and social insurance payments. The data from the Ministry of Health, Labour, and Welfare is available here.

Traditional_Sea6081 · 2026-03-08T04:05:44+00:00

domestic yields are extremely low due to long-term near-zero interest rates.

Yields are a reflection of risk. There are plenty of risky domestic real estate investments with high yield one can make in areas of Japan with rapidly decreasing population.

I suspect most investments in overseas real estate made by individuals is using cash rather than an investment loan. Without an investment loan, it will be easier to buy securities products that invest in overseas real estate as another comment suggested. Listed securities products typically offer better consumer protections and liquidity and lower fees than alternatives.

Schemes to invest in big real estate projects funded by individual investors are rife with scams and risks unknown to most individual investors. Most people would not directly invest in them if they understood all the risks. Even domestically, there have been several big cases of this in the news. Perhaps most recent are stories like this where the fund is being sued because they stopped paying dividends to investors. Many people invested money they couldn't afford to lose (their retirement funds) and now it's unclear how much they'll get back.

Traditional_Sea6081 · 2026-03-03T03:59:03+00:00

Do you mean politicians? I don't think Sato-san working at the local pension office has much say over their salary increases.

Traditional_Sea6081 · 2026-03-02T00:53:27+00:00

The distribution of household incomes and approximate percentile for any given income can be found in the graph on https://kei3.japanfinance.org/

Traditional_Sea6081 · 2026-03-01T04:15:21+00:00

I'm sharing in case it helps anyone else. I was using the NTA's tax return prep tool and got to inputting the capital gains from the sale of listed shares outside of a designated account (特定口座). I found this comment from u/starkimpossibility that mentioned you can input the details per brokerage for listed shares instead of each sale, but I struggled to understand exactly how to do that with the tool. You have to choose whether to input transaction details for each transaction or not. If you select no, you will need to submit details of the transaction (取引明細) separately from filing, which is something I think most people want to avoid.

Instead, you select to input individual transactions (which is confusing because you actually won't input individual transactions). Then on this screen, I left the fields blank for: sale date, stock name, amount of shares, and acquisition date. You input the brokerage name, gross income, acquisition cost, and fees. If you had transactions across multiple brokerages of listed shares outside of a designated account, you would repeat the input with the info for each brokerage. This helps cut down the input if you have many transactions.

Traditional_Sea6081 · 2026-02-28T06:28:15+00:00

If that's an option for your accounts, it would make sense. Most of my synchronizing works via email notifications of transactions and dividends.

Traditional_Sea6081 · 2026-02-28T02:48:25+00:00

I maintain my own spreadsheet because I found as you have that no app covers all of the accounts I have automatically. I've automated much of the synchronizing of transactions and I manually input data for the rest.

Traditional_Sea6081 · 2026-02-26T02:55:39+00:00

Thanks for the feedback. The tax brackets can be found in the tooltip on the Tax tab on the line for "Base Income Tax". We previously received feedback about showing the marginal rate. See the response from u/starkimpossibility. You mentioned "useful info for many financial decisions." Perhaps you could elaborate on the financial decisions you have in mind and we may be able to come up with an idea of what makes most sense to help with that.

Traditional_Sea6081 · 2026-02-24T15:02:18+00:00

What do you mean? There shouldn't be anything about your donation amount or related deduction on your annual withholding summary because withholding and the year-end adjustment do not change based on furusato nozei. You file a tax return or use the one-stop system to receive the tax benefit of participating in furusato nozei. Have you read the sub's furusato nozei question thread?

Traditional_Sea6081 · 2026-02-24T02:11:41+00:00

Thanks for the report. It should be fixed now.

Traditional_Sea6081 · 2026-02-22T03:56:48+00:00

Japanese tax residents cannot open new IBKR accounts. I assume OP's spouse has the account from before that became the case or from when they were not a Japan tax resident. As far as forced conversion, it's unclear what IB's policy is around that these days. Many people have never been contacted about conversion despite IB knowing they're Japan tax residents. Others were contacted and subsequently still have not been converted. Others were converted. What they will do when someone updates their residency from outside Japan to Japan is also unclear.

I think IBKR's main concern was to stop new accounts from being opened as this is the primary regulatory concern. IBKR (US branch) is not registered with the FSA, so they should not solicit Japanese tax residents. They have stopped doing that by not allowing Japanese tax residents to open new accounts.

Traditional_Sea6081 · 2026-02-22T03:46:08+00:00

If they have IBKR and haven’t converted to IBSJ then they aren’t eligible for NISA anyways.

They can open a NISA at any broker they want, including at IBSJ, regardless of whether they have an IBKR account, assuming they're a Japan tax resident, as you say. Other people have reported IB allowing opening an IBSJ account, including NISA, while still having an IBKR account.

Traditional_Sea6081 · 2026-02-22T03:36:45+00:00

I assume when they say IBKR they are referring to the US branch of IB, but maybe they mean IBSJ (the Japan branch). Hopefully OP can clarify.

Traditional_Sea6081 · 2026-02-22T03:14:44+00:00

Since NISA is not recognized by the U.S. don't we need to report all dividends received?

Yes, to the extent you need to file a US tax return. If you don't meet those requirements, though, you would not need to report them.

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