Important points to note about tax reforms to increase take-home pay in 2025

There have been tax reforms aimed at increasing take-home pay in 2025.

• Increase in the salary income deduction
• Increase in the basic deduction
• Increase in the income requirements for dependents

Here are two points to keep in mind.

There are cases where a person is exempt from tax but cannot be claimed as a dependent

The minimum guaranteed amount of the salary income deduction has increased from 550,000 yen to 650,000 yen,

and the basic deduction for income of 1.32 million yen or less has increased to 950,000 yen,

so salary income is tax-free up to 1.6 million yen (650,000 yen + 950,000 yen).

However, the dependent requirement has been revised from 480,000 yen to 580,000 yen,

so if your salary income is more than 1.23 million yen (650,000 yen + 580,000 yen), you will no longer be considered a dependent.
(For dependents aged 19 to 23, the deduction amount will be gradually reduced as your salary income exceeds 1.23 million yen)

For blue-collar workers, they are not eligible for spouse deductions or dependent deductions in the first place, so there will be no impact even if your salary income is increased to 1.6 million yen (130,000 yen/month).

If you file a quasi-final tax return by November 30, 2025

The effective date of this amendment is December 1st.

Therefore, if you filed a quasi-final tax return due to the death of the deceased or due to departure from Japan by November 30, 2025,

• After filing a tax return under the pre-amendment standards
• Within five years after December 1st, you will need to request a correction and have the tax recalculated under the revised standards.

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都築太郎税理士事務所/Tsuzuki Taro Tax Accountant Office

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