I misunderstood the ¥1.3 million dependent income threshold — do I need to file?

The ¥1.3 million figure is the health insurance and pension dependant test (被扶養者), which looks at your expected annual income. It is a social-insurance rule and is entirely separate from the tax filing rules. Whether you must file a tax return depends on the income tax rules: for example, a salaried employee with one employer whose salary is fully withheld must file if other income exceeds ¥200,000. If you think you missed a deadline, file as soon as you notice (see the late-filing section) and ask a zeirishi about your case.

Do I have to file a tax return if my side income is under ¥200,000?

Generally you do not have to file an income tax return (kakutei shinkoku) if you have one employer, all your salary is withheld or year-end adjusted, and your other income is ¥200,000 or less. Income here means revenue minus expenses, not gross receipts. You still need to make a resident tax (住民税) declaration to your city or ward office, by 15 March, unless you file a kakutei shinkoku, which counts as the resident-tax declaration too.

Is the ¥200,000 rule based on revenue or on profit?

On income (所得), meaning revenue minus expenses, not gross revenue. The NTA's Tax Answer No. 1900 describes the ¥200,000 test in terms of the total of your other income amounts.

I only worked for one company but I also did freelance work. Which rule applies?

If you have a single employer and all your salary was withheld or year-end adjusted, the test is whether your other income exceeds ¥200,000. If you have two or more employers, the salary that was not year-end adjusted plus your other income is compared with ¥200,000.

What happens if I miss the filing deadline?

File as soon as you notice. A return filed after the deadline is treated as a late return (期限後申告). The tax is due on the day you file, and delinquency tax (延滞税) accrues until you pay. A no-filing surcharge (無申告加算税) may also apply: 5% of the tax due if you file voluntarily before any notice of an audit, and higher rates after that. There is no surcharge if you file voluntarily within one month of the deadline and meet the other conditions NTA lists, including paying the tax in full by the deadline.

Can I still claim a refund if I did not file on time?

A refund return (還付申告) can be filed for 5 years, counted from 1 January of the year after the tax year. If you are owed a refund, you are not stuck with the March deadline. Ask a zeirishi to check your year.

Is the old ¥1.03 million tax wall still the number to watch?

Not as it was. From 2025 income the income requirement for a dependant (and for a same-household spouse) rose from ¥480,000 to ¥580,000 of income, which makes the old ¥1.03 million salary line ¥1.23 million of salary (¥580,000 plus the ¥650,000 minimum employment-income deduction). The 2026 tax reform changed the deductions again, so check the NTA's current pages or ask a zeirishi rather than relying on an old figure.

When is the deadline for my 2026 income tax return?

15 March 2027 (Monday) for both filing and payment. Tax counters open on 16 February 2027, and refund returns can also be accepted before 15 February. The individual consumption tax return for 2026 is due 31 March 2027.

Side income and tax filing in Japan for foreign residents (2026)

Do you need to file? The ¥200,000 rule, the ¥1.3 million dependant test, resident tax, deadlines and late filing, explained in plain English.

Quick answer

Salaried, one employer, side income of ¥200,000 or less: you generally do not have to file an income tax return (kakutei shinkoku). The test uses income (revenue minus expenses), not gross revenue.
Side income over ¥200,000: you must file.
Even at ¥200,000 or less, you still have to make a resident tax (住民税) declaration to your city or ward office by 15 March.
The ¥1.3 million figure is a different test: it decides whether you can be a health insurance and pension dependant. It does not decide whether you file taxes.
Next deadline: your 2026 income tax return is due 15 March 2027.

This is general information, not tax advice. Confirm your situation with a zeirishi (certified tax accountant).

Many foreign residents in Japan earn a little extra: freelance translation, tutoring, online sales, a small side business. Then the numbers start to blur together: ¥1.3 million, ¥1.03 million, ¥200,000. They come from different systems with different purposes. This guide separates them, using only figures published by the National Tax Agency (NTA), the Ministry of Health, Labour and Welfare (MHLW), the Japan Pension Service and city offices. The sources are listed at the bottom.

Step 1: Separate the three systems

The "walls" people talk about mix up three different things:

Income tax filing rules (kakutei shinkoku): decides whether you must file a return. The key number for a salaried employee is ¥200,000 of other income.
Resident tax declaration (住民税): filed with your city or ward office, a separate obligation from the national income tax return.
Social insurance dependant test: decides whether you can be covered as a dependant (被扶養者) under a family member's health insurance and pension. The ¥1.3 million figure belongs here.

Being under one number does not mean you are safe under the others.

Step 2: The ¥200,000 rule for salaried employees

According to the NTA (Tax Answer No. 1900), if you work for one employer and your salary was fully withheld or year-end adjusted, you must file a kakutei shinkoku if the total of your other income exceeds ¥200,000. Important details:

It is measured in income (所得): revenue minus expenses, not gross receipts.
If you work for two or more employers, the salary that was not year-end adjusted plus your other income is compared with ¥200,000.
Salary over ¥20,000,000 a year must be filed.
People whose filing would result in a refund are excluded from the obligation to file (though they can still file to get the refund).

Step 3: Under ¥200,000? You may still need the resident tax declaration

If your other income is ¥200,000 or less, an income tax return is generally not required. But a resident tax (市民税・県民税 / 住民税) declaration is still required. You file it with the city or ward office for your address on 1 January, and the deadline is 15 March. Filing a kakutei shinkoku counts as the resident-tax declaration too, so you do not need to do both. See the guidance from Yokohama and Meguro.

Step 4: Where the ¥1.3 million figure really comes from

The ¥1.3 million number is the health insurance and pension dependant (被扶養者) test, set out by the MHLW and the Japan Pension Service:

Your expected annual income (年間収入), which is gross and forward-looking, must be under ¥1.3 million (¥1.8 million if you are 60 or older or have a disability).
If you live in the same household as the insured person, your income must also be under half of theirs.
From 1 October 2025, the limit is ¥1.5 million for dependants aged 19 to 22 other than a spouse.

This is a social-insurance test. It is entirely separate from the tax filing rules above. If you earned more than ¥1.3 million and were counted as a dependant, that is a question for your insurer or the insured person's employer. It does not by itself tell you whether you needed to file a tax return.

Step 5: The tax "walls" (¥1.03 million and friends) after the 2025 and 2026 reforms

The ¥1.03 million figure was the income line for being treated as a dependant for tax purposes. The 2025 reform (NTA) changed the building blocks, for 2025 income:

The basic deduction became ¥950,000 for total income of ¥1.32 million or less (it was ¥480,000).
The minimum employment-income deduction rose from ¥550,000 to ¥650,000.
The income requirement for a dependant or same-household spouse rose from ¥480,000 to ¥580,000. So the old ¥1.03 million salary line became ¥1.23 million of salary (¥580,000 plus ¥650,000).
A new special deduction for specified relatives (特定親族特別控除) applies to relatives aged 19 to 22 with income of ¥580,000 to ¥1.23 million.

You may see "¥1.6 million" quoted for 2025. That is simply the arithmetic of two NTA figures: the ¥950,000 basic deduction plus the ¥650,000 minimum employment-income deduction. It describes deduction amounts, not a filing exemption. The filing rules are the ones in Steps 2 and 3.

The 2026 reform (NTA Tax Answer No. 1199, NTA 2026 page) revised the numbers again:

For 2026 and 2027 income (residents), the basic deduction is ¥1,040,000 for total income of ¥4.89 million or less, ¥670,000 for ¥4.89 million to ¥6.55 million, and ¥620,000 for ¥6.55 million to ¥23.5 million.
From 2028, it is ¥990,000 for total income of ¥1.32 million or less, and ¥620,000 above that up to ¥23.5 million.
The minimum employment-income deduction rises to ¥740,000.
It takes effect on 1 December 2026 and is applied at the December 2026 year-end adjustment.
For non-residents, the maximum basic deduction is ¥620,000 from 2026.

The dependant income requirement was also revised for 2026. Use the NTA pages above for the current figure, or ask a zeirishi, rather than relying on a number from an older article.

Step 6: Calculate your side income and decide

Total your side-income revenue for the year (1 January to 31 December).
Subtract the expenses you can document. The result is your income (所得).
One employer, fully withheld or year-end adjusted salary: if that income is over ¥200,000, file a kakutei shinkoku. If it is ¥200,000 or less, make the resident tax declaration with your city or ward office instead.
Two or more employers: add the salary that was not year-end adjusted to your other income and compare the total with ¥200,000.

If you are building a freelance rate, the Myjin day-rate calculator can help you think about what to charge, and the Kojin Stack tax deadlines list upcoming dates you can add to your calendar. If you start charging consumption tax or issuing invoices, read our guide to the invoice system and consumption tax for freelancers.

Step 7: Deadlines for the 2026 tax year

Income tax return for 2026 (令和8年分): filing and payment by 15 March 2027 (Monday). Tax counters open 16 February 2027. Refund returns are accepted before 15 February too (NTA).
Resident tax declaration (if you are not filing a kakutei shinkoku): 15 March.
Individual consumption tax for 2026: 31 March 2027 (Wednesday).

You can prepare your return in the NTA's online return preparation corner (確定申告書等作成コーナー) and submit it by e-Tax or by mail.

Step 8: If you filed late or never filed

This follows NTA Tax Answer No. 2024.

File as soon as you notice. A return after the deadline is treated as a late return (期限後申告, kigo shinkoku).
The tax is due on the day you file. Delinquency tax (延滞税) accrues until you pay.
The no-filing surcharge (無申告加算税) is 5% of the tax due if you file voluntarily before any notice of an audit.
After a notice of an audit (but before a determination is anticipated), it is 10% on tax up to ¥500,000, 15% on the part from ¥500,000 to ¥3 million, and 25% above ¥3 million (for returns due on or after 1 January 2024).
After an audit, the rates are 15%, 20% and 30%.
No surcharge applies if you file voluntarily within one month of the deadline, the tax was fully paid by the deadline, and the other conditions NTA lists are met (including no penalty in the prior 5 years).

Refund returns

If you are owed a refund (for example, tax was withheld but you had deductions to claim), a refund return (還付申告) can be filed for 5 years from 1 January of the following year (NTA Tax Answer No. 2030).

Find an English-speaking tax accountant

A zeirishi can check whether your side income triggers filing, prepare the return and help if you missed a deadline. These English-friendly tax and accounting professionals are listed in the Myjin directory (browse all in English-friendly finance services):

Sources

NTA Tax Answer No. 1900: who must file a kakutei shinkoku
Yokohama City and Meguro City: resident tax declaration
NTA: return deadlines and counters
NTA Tax Answer No. 2024: late filing and surcharges
NTA Tax Answer No. 2030: refund returns
NTA: 2025 basic deduction changes
NTA Tax Answer No. 1199 and NTA: 2026 changes
MHLW and Japan Pension Service: dependant (被扶養者) income test

This is general information, not tax advice. Confirm your situation with a zeirishi (certified tax accountant).