Japan Tax Agency Posts Tax Reform Outline on 2026 Income Tax Withholding, Deductions

The Japanese National Tax Agency April 20 posted online a 2026 outline on income tax withholding and deductions. Topics covered include: 1) increases to the basic deduction and minimum employment income deduction, with corresponding revisions to withholding tax tables; 2) higher income thresholds for dependents, spouses, working students, and related deductions, and increases to public pension withholding tax deductions and exemption thresholds; 3) increased tax-free limits for commuting allowances, including additional for qualifying parking expenses, and to tax-free meal and night shift meal allowances; 4) extensions and revisions to housing loan tax credit measures and changes to the taxation of ...