How to File Taxes in Japan as a Foreigner: Kakutei Shinkoku, e-Tax & Deductions You're Missing

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Do You Actually Need to File?

Most employees don’t need to file. But if you do and don’t, the penalties are harsh.

This is the first question every foreign resident asks, and the answer depends on your employment situation:

You DON’T need to file if:

• You’re a regular employee at one company earning under ¥20 million
• Your employer performs year-end adjustment (年末調整, nenmatsu chosei) in December
• You have no other income sources (no freelance work, no rental income, no investments outside NISA/iDeCo)

Your employer withholds income tax (所得税) from every paycheck and reconciles the total in December. You’ll receive a withholding tax slip (源泉徴収票, gensen choushuuhyou) by January — this is your proof that taxes are settled.

You MUST file (確定申告) if:

• Annual salary exceeds ¥20 million
• You have two or more employers (including part-time jobs)
• You’re self-employed, freelance, or run a business (個人事業主)
• You have side income exceeding ¥200,000 (freelance, crypto, stock gains outside special accounts)
• You left your job mid-year and didn’t get year-end adjustment
• You received retirement income (退職所得) with special deductions to claim
• You sold real estate in Japan

You SHOULD file even if not required:

• Medical expenses exceeded ¥100,000 — you’ll get a refund
• You donated via ふるさと納税 and didn’t use the “one-stop” system
• You have overseas dependents — each dependent deduction is worth ¥380,000 off your taxable income
• You paid high social insurance premiums in your home country before moving

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Japan’s Income Tax Brackets (2025 Income Year)

Japan uses a progressive tax system. The more you earn, the higher the rate on the excess:

Taxable Income	Tax Rate	Deduction Amount
¥1,950,000 or less	5%	¥0
¥1,950,001 – ¥3,300,000	10%	¥97,500
¥3,300,001 – ¥6,950,000	20%	¥427,500
¥6,950,001 – ¥9,000,000	23%	¥636,000
¥9,000,001 – ¥18,000,000	33%	¥1,536,000
¥18,000,001 – ¥40,000,000	40%	¥2,796,000
Over ¥40,000,000	45%	¥4,796,000

Plus: 2.1% surtax on income tax (復興特別所得税, reconstruction tax through 2037). Plus: Resident tax (住民税) of approximately 10% — this is billed separately starting June.

Example: On ¥5,000,000 taxable income, your income tax is: ¥5,000,000 × 20% − ¥427,500 = ¥572,500. Add 2.1% surtax = ¥584,523. Resident tax adds roughly ¥500,000. Total tax burden: approximately ¥1,084,523.

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The Filing Period: February 16 – March 15

Tax offices are packed during the last week. File early or file online.

The annual tax return (確定申告, kakutei shinkoku) covers income from January 1 to December 31 of the previous year. For 2025 income, you file between February 16 and March 15, 2026.

Critical deadlines:

• February 16: Filing opens
• March 15: Filing deadline for tax payments
• March 15: Deadline to claim refunds (though refund claims can actually be filed for up to 5 years)
• Late filing: Penalties of 5–20% plus interest (延滞税) at approximately 2.4% per year

Pro tip: If you’re owed a refund (還付申告), you can file from January 1 — no need to wait until February 16. This avoids the crowds entirely.

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How to File: Two Options

Option 1: In Person at the Tax Office (税務署)

Walk into your local tax office and say: 「確定申告をしたいのですが」 (Kakutei shinkoku wo shitai no desu ga — “I’d like to file a tax return”)

What to bring:

1. My Number card (マイナンバーカード) — or My Number notification card + photo ID
2. Withholding tax slip (源泉徴収票) — from each employer
3. Receipts for deductions — medical bills, insurance certificates, ふるさと納税 receipts
4. Bank account information — for refund deposit
5. Seal (印鑑) or be prepared to sign

What to expect:

• Staff will guide you through the forms. Many offices set up computer stations where you enter data with assistance.
• During peak season (early March), expect 2–3 hour waits. Some offices require a numbered ticket.
• Many tax offices can provide assistance in English if you call ahead. The National Tax Agency (NTA) also has multilingual guides.

Find your tax office: Search “管轄税務署” + your ward/city name, or use the NTA website (nta.go.jp).

Option 2: e-Tax (Online Filing)

The NTA’s online system lets you file from home. It’s improved significantly but is still primarily in Japanese.

What you need:

• My Number card with the card reader function enabled
• Smartphone with NFC (iPhone 7+ or recent Android) OR an IC card reader for your PC
• The e-Tax app or web browser at 確定申告書等作成コーナー

Step-by-step:

1. Go to the NTA’s Tax Return Preparation Corner (確定申告書等作成コーナー)
2. Select “作成開始” (Start creating)
3. Choose “e-Taxで提出” (Submit via e-Tax)
4. Log in with your My Number card (hold it to your phone’s NFC reader)
5. Enter income information from your 源泉徴収票
6. Enter deductions (medical, insurance, dependents)
7. Review the calculated tax/refund amount
8. Submit electronically

Tips for e-Tax:

• Use Google Chrome’s auto-translate for a rough English translation of the pages
• The NTA publishes an English PDF guide: “You can create a Final Tax Return at Home!” — search for it on nta.go.jp
• If you’re claimed a refund, it’s deposited directly to your bank account in 1–3 weeks (faster than paper filing)
• Save your login credentials — you’ll use them every year

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Deductions Most Foreigners Miss

This is where you leave money on the table. Japan’s tax system has generous deductions, but many foreigners don’t know they exist.

Medical Expense Deduction (医療費控除)

If your household’s medical expenses exceed ¥100,000 in a calendar year (or 5% of income if income is under ¥2M), you can deduct the excess.

What counts:

• Doctor visits, hospital stays, surgery
• Prescription medication
• Dental work (including cleanings and fillings — but not cosmetic procedures)
• Childbirth costs (minus insurance reimbursements)
• Transportation to hospitals (train/bus fare — keep a log)

What doesn’t count:

• Over-the-counter medicine (most of it)
• Cosmetic procedures
• Health checkups (unless a disease is found and treated)

Example: ¥300,000 in medical expenses − ¥100,000 threshold = ¥200,000 deduction. At 20% tax bracket = ¥40,000 refund.

Alternative: The “self-medication tax system” (セルフメディケーション税制) lets you deduct OTC medicine purchases over ¥12,000 if you had a health checkup. You can choose this OR the standard medical deduction — not both.

Overseas Dependent Deduction (扶養控除)

This is the big one that most foreigners miss. If you financially support family members abroad (parents, siblings, children), you can claim them as dependents.

Each dependent deduction reduces taxable income by:

• General dependent (16–18 or 23–69): ¥380,000
• Specified dependent (19–22, e.g., college-age): ¥630,000
• Elderly dependent (70+): ¥480,000 (or ¥580,000 if living together)

Requirements (tightened in 2023):

• The dependent must earn less than ¥480,000/year
• You must prove financial support — bank transfer receipts showing remittances of ¥380,000+ per dependent per year
• Family relationship documents (translated and notarized)
• The dependent must be a family member within the 6th degree of kinship

Example: Supporting 2 parents (both over 70) abroad = ¥480,000 × 2 = ¥960,000 off taxable income. At 20% bracket = ¥192,000 saved.

Furusato Nouzei (ふるさと納税)

Donate to rural municipalities, get a tax deduction, and receive regional gifts (rice, wagyu beef, seafood, fruits). It’s essentially free stuff minus a ¥2,000 self-payment.

How it works:

1. Calculate your limit using an online simulator (search: ふるさと納税 シミュレーター)
2. Choose a municipality and donate via sites like Furusatonouzei.jp, Satofull, or Rakuten
3. Receive gifts and a donation receipt
4. Claim the deduction via tax return OR “one-stop special exception” (ワンストップ特例 — employees only, max 5 municipalities)

Typical limit: Around 20–30% of your resident tax. For ¥5M annual income, the limit is roughly ¥60,000–¥70,000 in donations.

Other Deductions

• Social insurance premiums (社会保険料控除) — health insurance, pension contributions (fully deductible)
• Life insurance premiums (生命保険料控除) — up to ¥120,000 deduction
• Earthquake insurance (地震保険料控除) — up to ¥50,000 deduction
• Spousal deduction (配偶者控除) — if your spouse earns under ¥1,500,000
• iDeCo contributions — fully deductible (up to ¥276,000/year for employees with corporate pension)

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Resident Tax (住民税): The Tax That Follows You

Resident tax is billed separately. It’s based on LAST year’s income — so your first year is free, and your last year hits hard.

Resident tax (住民税, juminzei) is approximately 10% of your taxable income (municipal tax ~6% + prefectural tax ~4%) plus a flat per-capita charge of about ¥5,000.

Key points:

• It’s based on your previous year’s income and your registered address as of January 1
• Employees: Deducted monthly from your salary (June–May cycle)
• Self-employed/unemployed: You receive a bill from your ward office with quarterly payment deadlines
• First year in Japan: No resident tax (you had no prior-year income in Japan)
• The trap: Your second year hits harder because you’re paying this year’s income tax PLUS last year’s resident tax

Leaving Japan: Don’t Skip This

If you leave Japan mid-year, you still owe resident tax for the full fiscal year based on where you lived on January 1.

Before departing:

1. Pay all outstanding resident tax — visit your ward office
2. OR appoint a tax representative (納税管理人) — a person in Japan who will handle your remaining tax obligations. File form at the tax office before leaving.
3. File a final tax return if required — you can file for a partial year
4. Notify your ward office of your departure and submit the moving-out notice (転出届)

Common mistake: Leaving Japan in March thinking “I already filed my tax return.” Your resident tax bill arrives in June — after you’ve left. If no one pays it, it becomes delinquent debt.

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Hiring a Tax Professional

If your tax situation is complex (multiple income sources, investments, real estate, crypto), consider a licensed tax accountant (税理士, zeirishi).

Typical fees:

• Simple employee return with deductions: ¥30,000–¥50,000
• Freelancer/sole proprietor: ¥50,000–¥150,000
• Business with employees: ¥100,000+

Where to find English-speaking tax accountants:

• Tokyo Zeirishi-kai (東京税理士会) — has a referral service
• Online directories: tokyozeirishi.jp, Japan Tax & Accounting
• Ask in expat communities (Reddit r/JapanFinance, Facebook groups)

Our take: If you’re a regular employee with straightforward deductions, you don’t need a tax accountant. e-Tax handles it. If you’re self-employed with overseas income, the ¥50,000–¥100,000 fee pays for itself in correctly claimed deductions and avoided mistakes.

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When Things Go Wrong

Problem	Cause	Solution
Missed the March 15 deadline	Forgot, procrastinated, didn't know	File immediately. Late filing penalty: 5% (within 1 month) to 20%. Interest charges apply. Filing late is still better than not filing.
Don't have My Number card for e-Tax	Never applied or haven't picked it up	File in person at the tax office with My Number notification card + photo ID. Or apply for My Number card now — see our My Number guide.
Can't read the e-Tax forms	Interface is in Japanese	Use Chrome auto-translate. Download NTA's English guide. Or file in person where staff can assist.
Lost 源泉徴収票 (withholding slip)	Misplaced the document from employer	Ask your employer (current or former) for a reissue. They're required to provide it.
Resident tax bill arrived after leaving Japan	Didn't pay before departure or appoint a tax representative	Contact the ward office. Arrange payment from abroad (some accept overseas bank transfer). Ask a friend in Japan to help.

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FAQ

Q: My employer does year-end adjustment. Do I still need to file?

A: Usually no. But you should file if you want to claim medical expense deductions, overseas dependent deductions, or ふるさと納税 (if you donated to more than 5 municipalities). Year-end adjustment doesn’t cover these.

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Q: I’m a freelancer. What records do I need to keep?

A: All income receipts, invoices issued, business expenses (receipts for equipment, transportation, office supplies, software, co-working space). Keep records for 7 years. Consider using accounting software like freee or Money Forward for bookkeeping.

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Q: Can I file in English?

A: The tax return itself must be filed in Japanese. However, the NTA has English-language guides, and many tax offices can provide basic English assistance if you call ahead. Tax accountants who speak English are available in Tokyo.

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Q: What about cryptocurrency taxes?

A: Crypto profits are taxed as miscellaneous income (雑所得) at your marginal income tax rate (up to 55% including resident tax). Every trade, swap, and purchase using crypto is a taxable event. Keep detailed records. This is one area where a tax accountant is worth the fee.

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Q: I work remotely for a foreign company. Do I owe Japanese taxes?

A: If you’re a tax resident of Japan (generally living here 1+ year), you owe Japanese income tax on worldwide income. Your foreign employer may not withhold Japanese taxes, so you’ll need to file kakutei shinkoku and pay directly. This is complex — consult a tax professional.

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Related Guides

• My Number Card Guide — required for e-Tax filing
• How to Register at City Hall — your registration address determines your tax office
• How to Open a Bank Account — needed for refund deposits
• How to Pay Bills in Japan — includes tax payment methods
• Payment Methods in Japan — convenience store payment for tax bills

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Summary

1. Most employees don’t need to file — year-end adjustment covers you. But file if you have medical expenses over ¥100,000 or overseas dependents.
2. Filing period: Feb 16 – Mar 15 — file early to avoid crowds. Refund claims can start January 1.
3. Claim your deductions — overseas dependents, medical expenses, and ふるさと納税 are the three biggest savings most foreigners miss.

Next step: Check if you need to file. If yes, gather your 源泉徴収票 and medical receipts. Try e-Tax first — it’s faster and refunds arrive in 1–3 weeks. If it’s too complex, book a tax accountant in January (they fill up fast before March).

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References and Official Sources

1. National Tax Agency (国税庁)
   “Income Tax System” (所得税)
   https://www.nta.go.jp/taxes/shiraberu/taxanswer/shotoku/shotoku.htm
   Accessed February 2026. Official NTA page explaining Japan’s progressive income tax system, tax brackets, and filing requirements for residents.

2. National Tax Agency
   ”Tax Return Preparation Corner” (確定申告書等作成コーナー)
   https://www.keisan.nta.go.jp/
   Accessed February 2026. Official online tax return preparation and e-Tax filing portal. Provides guided tax return creation with automatic calculations.

3. National Tax Agency
   ”Income Tax Brackets and Rates” (所得税の税率)
   https://www.nta.go.jp/taxes/shiraberu/taxanswer/shotoku/2260.htm
   Accessed February 2026. Official tax rate table confirming the progressive brackets cited in this article (5% to 45%) plus the 2.1% reconstruction surtax (復興特別所得税) in effect through 2037.

4. National Tax Agency
   ”Medical Expense Deduction” (医療費控除)
   https://www.nta.go.jp/taxes/shiraberu/taxanswer/shotoku/1120.htm
   Accessed February 2026. Official guidance on medical expense deductions (医療費控除), including the ¥100,000 threshold, eligible expenses, and self-medication tax system alternative.

5. National Tax Agency
   ”Dependent Deduction” (扶養控除)
   https://www.nta.go.jp/taxes/shiraberu/taxanswer/shotoku/1180.htm
   Accessed February 2026. Official information on dependent deductions (扶養控除) including overseas dependents, deduction amounts (¥380,000-¥630,000), and documentation requirements tightened in 2023.

6. National Tax Agency (English)
   “Tax Guide for Foreign Residents”
   https://www.nta.go.jp/english/taxes/index.htm
   Accessed February 2026. English-language tax information for foreign residents, including filing requirements, tax resident status, and treaty provisions.

7. Ministry of Internal Affairs and Communications (総務省)
   “Resident Tax System” (住民税)
   https://www.soumu.go.jp/main_sosiki/jichi_zeisei/czaisei/czaisei_seido/149767_08.html
   Accessed February 2026. Official explanation of the resident tax (住民税) system, confirming the approximately 10% rate (6% municipal + 4% prefectural) and prior-year income calculation basis.

8. Ministry of Internal Affairs and Communications
   ”Furusato Nouzei (Hometown Tax Donation System)“
   https://www.soumu.go.jp/main_sosiki/jichi_zeisei/czaisei/czaisei_seido/080430_2_kojin.html
   Accessed February 2026. Official explanation of the ふるさと納税 system, tax deduction structure, and one-stop special exemption for salaried employees donating to 5 or fewer municipalities.

Note on Filing Deadlines: The February 16 - March 15 filing period is established annually by the National Tax Agency. For 2025 income, the filing period is February 16 - March 15, 2026. Late filing penalties (5-20%) plus延滞税 (delinquency tax, approximately 2.4% annually as of 2026) apply to late submissions.

Note on Year-End Adjustment: The 年末調整 (nenmatsu chōsei) process performed by employers in December reconciles withholding tax for salaried employees with a single employer. This eliminates the need for most employees to file individual tax returns (確定申告). However, employees with side income over ¥200,000, multiple employers, or significant deductions must file regardless of year-end adjustment.

Note on Overseas Dependent Documentation: As of 2023, stricter requirements apply to claiming overseas dependent deductions. Required documentation includes: (1) bank transfer receipts showing remittances of at least ¥380,000 per dependent per year; (2) family relationship documents (birth certificates, marriage certificates, etc.) translated into Japanese; (3) proof that the dependent’s annual income is below ¥480,000. Verbal claims are no longer accepted.

Note on Resident Tax Payment for Departing Residents: Foreign residents leaving Japan remain liable for resident tax (住民税) based on their residence status as of January 1. Even if departing mid-year, the full year’s resident tax must be paid or a tax representative (納税管理人) appointed. Ward offices can arrange payment in full before departure or set up a representative to handle quarterly payments.