Basic Deduction
The Basic Deduction (基礎控除, Kiso Koujo), or basic exemption, is a deduction applied to taxable income for the purposes of Income Tax and Residence tax.
This deduction lowers the amount of taxable income, before the rate of taxation and amount of tax due is calculated.
| Total taxable income | Deduction amount |
|---|---|
| ¥24 million and below | ¥480,000 |
| Above ¥24 million but below ¥24.5 million | ¥320,000 |
| Above ¥24.5 million but below ¥25 million | ¥160,000 |
| Above ¥25 million | ¥0 |
| Total taxable income | Deduction amount |
|---|---|
| ¥24 million and below | ¥430,000 |
| Above ¥24 million but below ¥24.5 million | ¥290,000 |
| Above ¥24.5 million but below ¥25 million | ¥150,000 |
| Above ¥25 million | ¥0 |
Note about Employment Income (給料所得)
There are multiple types of income, but employment income is subject to an additional Employment Income Deduction. The income used to calculate the basic deduction is the amount after applying the employment income deduction.