Tax Benefits for Parents in Japan: What Foreigners Can Claim (2026)

May 31, 2026 Maternity Prep Navigator Editorial ~18 min read

Having a baby or raising children in Japan comes with potential tax advantages that many foreign residents are not aware of — or assume do not apply to them. In fact, Japan's income tax and residence tax (juuminzei) systems include several deductions and programs that you may be able to use regardless of nationality, as long as you meet the conditions. This guide covers the key tax benefits relevant to families: the dependent deduction (fuyou koujo), the medical expense deduction (iryouhi koujo), the furusato nozei hometown tax program (furusato nouzei), and when you need to file a tax return (kakutei shinkoku). We also explain the important concept of tax residency, which determines how Japan taxes your income.

1. Tax Residency in Japan: "Resident" vs. "Non-Resident"

One of the most common sources of confusion for foreigners in Japan is the relationship between immigration status and tax status. These are two separate systems governed by different laws.

What is a "resident" for Japanese income tax purposes?

Under the Income Tax Act, a person is generally considered a "resident" (kyojuusha) in Japan if they have a domicile (juusho) in Japan, or have maintained a residence (kyosho) in Japan for one year or more. In practice, most people who live and work in Japan on a mid-to-long-term visa and are registered as residents are treated as tax residents.

Tax residents are generally subject to Japanese income tax on their worldwide income. Most foreign nationals living in Japan on work, spouse, or permanent resident visas and residing here for a continuous period would typically be treated as residents for tax purposes — but this depends on individual circumstances. Confirm your status with the zeimusho.

Non-residents

A person who does not have a domicile in Japan and has not maintained a residence there for one year or more is generally a "non-resident" (hikyojuusha). Non-residents are generally taxed only on Japan-sourced income, and at different rates. Many of the deductions described in this article — including the dependent deduction and medical expense deduction — apply primarily to residents. If you are classified as a non-resident, please consult the zeimusho for the applicable rules.

Why this matters for new parents

Your tax residency status affects which deductions you can claim, whether you need to file a tax return, and what rate applies to your income. Most foreign parents who have been living in Japan for a year or more on a qualifying visa will be residents for tax purposes, but this is not automatic — especially for those who arrive partway through a tax year, or who have complex employment arrangements. When in doubt, ask your employer's payroll department or visit the nearest zeimusho.

2. Dependent Deduction (Fuyou Koujo): Who Qualifies?

The dependent deduction (fuyou koujo) allows taxpayers to reduce their taxable income by a certain amount for each qualifying dependent family member. The deduction reduces the amount of income tax you pay. Here is how it works in general terms.

Who counts as a "dependent" for tax purposes?

To claim the dependent deduction under Japanese income tax rules, the dependent must generally meet the following conditions (as a general overview — confirm with the zeimusho for your specific situation):

• The dependent must be a family member (shinzoku) as defined under the Income Tax Act (includes spouses in certain cases, parents, siblings, and children).
• The dependent's own income must be below a certain threshold (generally, total income of around 580,000 yen or less for the year — this was raised from 480,000 yen under the FY2025 tax reform and applies from the 2025 tax year onward; the exact figure is subject to revision, so confirm with the zeimusho).
• The dependent must be aged 16 or over. Children under 16 are not eligible for the income tax dependent deduction. They are instead supported through the monthly child benefit system (jidou teate). See our child benefit guide for details.

The deduction amount varies depending on the dependent's age category. As a general reference (amounts as of May 2026, subject to revision):

• General dependents aged 16 and over: a deduction of approximately 380,000 yen from taxable income is commonly cited.
• Specified dependents (tokutei fuyou shinzoku) aged 19 to under 23 (i.e., 19 through 22 as of December 31): a higher deduction commonly cited at approximately 630,000 yen. Note: the FY2025 tax reform also introduced a new graduated "special deduction for specified relatives" for relatives in this age range whose total income is between roughly 580,000 and 1,230,000 yen — confirm applicability and timing with the zeimusho.
• Elderly dependents aged 70 and over: enhanced deduction amounts apply, varying by whether the dependent lives with you.

Children under 16 and the dependent deduction

A point that frequently causes confusion: children aged 15 and under are not eligible for the income tax dependent deduction (fuyou koujo) in Japan. This is by design — younger children are supported through the monthly child benefit (jidou teate) program rather than through the tax deduction system. If your child is 16 or older, they may qualify for the dependent deduction. For younger children, check your eligibility for the child benefit program.

3. Overseas-Resident Relatives: The 2023 Rule Change

For foreign residents in Japan, one of the most important recent developments in tax law is the significant tightening of rules around claiming overseas-resident relatives as dependents. This change took effect from January 1, 2023 (fiscal year 2022 onward for income tax purposes, and fiscal year 2023 onward for residence tax purposes — confirm the applicable timing with the zeimusho).

What changed in 2023?

Previously, foreign residents in Japan could claim overseas-resident relatives (kokugai kyojuu shinzoku) as dependents under relatively broad conditions, provided they could show the family relationship and financial support. The 2023 revision significantly tightened the eligibility criteria for overseas-resident relatives aged 30 to 69.

General rules after the 2023 revision (summary)

As a general overview of the post-2023 rules (always verify with the zeimusho for current rules and your specific situation):

• Overseas relatives aged under 30: Generally eligible to be claimed as a dependent, subject to the standard conditions (income below threshold, family relationship confirmed, etc.).
• Overseas relatives aged 30 to 69: Generally not eligible to be claimed as a dependent under the revised rules, unless one of the following exceptions applies:
  • The relative is studying abroad (i.e., the overseas residence is for the purpose of study — ryuugaku).
  • The relative has a disability (shougaisha) of a qualifying degree.
  • You sent the relative the equivalent of 380,000 yen or more in remittances during the tax year in question (the exact threshold is subject to revision — confirm with the zeimusho).
• Overseas relatives aged 70 and over: Generally eligible to be claimed as a dependent, subject to the standard conditions.

Documentation requirements for overseas dependents

Even where an overseas relative is eligible, claiming them as a dependent requires supporting documentation. Requirements typically include:

• Documents proving the family relationship (such as a family register equivalent — koseki — or a foreign equivalent certified by a relevant authority).
• For remittance-based eligibility: bank transfer records or similar evidence showing the amount sent to the overseas relative.
• Depending on the situation, additional documents may be required. The zeimusho can advise on specific requirements for your country of origin and circumstances.

4. Medical Expense Deduction (Iryouhi Koujo) and Birth Costs

The medical expense deduction (iryouhi koujo) allows you to deduct qualifying medical expenses that exceed a certain threshold from your taxable income. This is filed through the tax return (kakutei shinkoku) process and can be especially relevant for families who had significant pregnancy and birth-related costs during the year.

What is the general threshold?

As a general reference based on publicly available information (as of May 2026, subject to revision and individual variation):

• The deductible amount is generally the portion of qualifying medical expenses paid during the year that exceeds 100,000 yen, or exceeds 5% of your total net income amount if that figure is less than 100,000 yen.
• This means that if your qualifying medical expenses for the year totaled, for example, 300,000 yen, and the applicable threshold is 100,000 yen, the potentially deductible amount would be 200,000 yen. The actual tax reduction depends on your tax rate.
• There is a maximum deduction limit. Confirm the current cap with the zeimusho.

Which expenses may qualify?

The following are general examples of expense categories that may qualify as medical expenses for the deduction (this is not an exhaustive list — confirm with the zeimusho or the National Tax Agency's published guidelines):

• Fees paid to hospitals or clinics for diagnosis and treatment (including obstetric examinations that involve a doctor's diagnosis).
• Hospital delivery fees (the portion paid out of pocket — see the deduction rule for birth allowance below).
• Prescription medication costs.
• Transportation costs to and from medical facilities (public transit fares; ambulance fees in emergency situations).
• In certain circumstances, costs for specific treatments or procedures — but over-the-counter medications and purely preventive health items are generally not qualifying expenses.

Note that prenatal checkup subsidy vouchers (jushinhyou) provided by the municipality reduce the out-of-pocket amount you actually paid, so only the actual out-of-pocket portion is potentially deductible.

Birth allowance and the medical expense deduction: the offset rule

An important rule applies when calculating the medical expense deduction for birth costs: any amounts that were reimbursed or paid on your behalf by insurance or government programs must be deducted from your medical expenses before calculating the deductible amount.

In practice, this means that if you received the lump-sum birth allowance (shussan ikuji ichijikin), the amount of the allowance must generally be subtracted from the birth-related medical expenses you paid. Only the net out-of-pocket amount remaining after subtracting the allowance (and any other reimbursements) contributes to the deductible medical expense total. For more on birth costs and the birth allowance, see our birth cost breakdown guide.

How to claim the medical expense deduction

The medical expense deduction cannot be processed through the year-end adjustment (nenmatsu chousei) conducted by your employer. You must file a tax return (kakutei shinkoku) to claim it — see Section 6 of this article. Keep receipts for all medical expenses paid during the year, as you will need them to substantiate the claim. You can total the expenses for all family members living in the same household together.

Distinguishing the medical expense deduction from high-cost medical care relief

The medical expense deduction (iryouhi koujo) is a tax deduction filed with the tax office. It is different from the high-cost medical care expense relief system (kougaku ryouyouhi), which is administered through health insurance and directly caps the amount you pay at a hospital in a given month for insured medical treatment. Both may be relevant to your situation, but they are separate systems. For more on the high-cost medical care system, see our guide to kougaku ryouyouhi.

5. Furusato Nozei: Hometown Tax for Foreign Residents

Furusato nouzei (ふるさと納税, hometown tax) is a program that allows people who pay residence tax (juuminzei) in Japan to redirect a portion of that tax payment to a municipality of their choice — often in exchange for local gift items. The redirected amount is subtracted from what you would otherwise pay in residence tax (and partly in income tax) in your current municipality.

Can foreign residents use furusato nozei?

Yes. The furusato nouzei program is available to anyone who pays residence tax (juuminzei) in Japan — it is not restricted by nationality. If you are a foreign resident who is liable for and actually pays juuminzei, you can participate in the program regardless of your visa type.

The key condition is that you must be paying residence tax. Residence tax is generally assessed on people who were resident in Japan as of January 1 of the assessment year and whose income exceeds a certain threshold. New arrivals who were not in Japan on January 1 of the previous year, or those with very low incomes, may not be liable for residence tax in a given year — and therefore would have no tax to redirect through furusato nouzei.

How does furusato nozei work?

In simplified terms:

1. You make a donation to a municipality of your choice through one of the registered furusato nouzei platforms or directly to the municipality.
2. You receive a thank-you gift (typically local food, products, or experiences) from the receiving municipality.
3. The donation amount (minus a personal burden of approximately 2,000 yen) is deductible from your income tax and residence tax, up to a limit determined by your income.
4. The upper limit of donations that you can effectively make without exceeding your tax deduction cap depends on your annual income, family situation, and other deductions. Platforms and the National Tax Agency provide online calculators as a reference — but for accurate calculation, consult a zeirishi or the zeimusho.

How to process the tax benefit: two methods

• One-stop exception (wansutoppu tokurei): If you are a salaried employee who does not otherwise need to file a tax return (kakutei shinkoku), and you donated to five or fewer municipalities in the year, you may be able to use the one-stop exception system. Under this system, you submit a form to each receiving municipality within the specified deadline, and the tax reduction is processed through your residence tax without filing a tax return. Confirm the current deadline and procedure with each municipality.
• Tax return (kakutei shinkoku): If you are not using the one-stop exception — for example, because you need to file a tax return anyway (e.g., to claim the medical expense deduction), or because you donated to more than five municipalities — you declare your furusato nouzei donations in your tax return. In this case, do not also submit the one-stop exception form.

6. Tax Return (Kakutei Shinkoku) vs. Year-End Adjustment (Nenmatsu Chousei)

Understanding when you need to file a tax return is important for foreign residents in Japan. The system works differently from many other countries.

Year-end adjustment (nenmatsu chousei)

In Japan, employers who pay salaries conduct a year-end tax adjustment (nenmatsu chousei) on behalf of their employees each December. This process recalculates the total income tax owed for the year, accounting for any eligible deductions that the employee declares to the employer — such as insurance premium deductions, the basic deduction, and the dependent deduction (if submitted to the employer). For many salaried employees with straightforward circumstances, the nenmatsu chousei settles their income tax obligation without the need to file a separate tax return.

When must you file a tax return (kakutei shinkoku)?

You generally need to file a tax return if one or more of the following applies:

• You want to claim the medical expense deduction (iryouhi koujo) — this cannot be processed through the year-end adjustment.
• You used furusato nouzei and are not using the one-stop exception (e.g., donated to more than five municipalities, or are already filing a tax return for another reason).
• You have income from multiple employers or significant income in addition to your salary (such as freelance work, rental income, or overseas income above certain thresholds).
• Your total income from salary exceeds approximately 20 million yen in the year.
• You are self-employed or a business owner.
• You are a non-resident claiming Japan-sourced income subject to specific rules.

When is the tax return filing period?

The standard tax return filing period in Japan is generally from February 16 to March 15 of the following year (for the previous calendar year's income). For example, to report income earned in 2025, the standard filing window is approximately February 16 to March 15, 2026. The exact dates may shift slightly if they fall on a weekend or holiday — confirm the current year's dates with the National Tax Agency (Kokuzei Chou) or your local zeimusho.

However, if you are filing solely to claim a refund — for example, if the medical expense deduction results in a tax refund — you can generally file your return from January 1 of the filing year, without waiting until February 16. Refund claims can also be submitted up to five years after the relevant tax year.

Filing online: e-Tax

Japan's National Tax Agency offers an online tax return filing system called e-Tax. The system supports a range of deduction calculations and can be accessed with a My Number card (Mainanbaa Kaado) and a card reader, or through certain smartphone authentication methods. Some parts of the e-Tax system have English guidance available, but the main filing interface is in Japanese. If you are not comfortable with Japanese, consider seeking assistance from a zeirishi or a tax consultation service that supports foreign residents. Many municipalities and international exchange associations also run free tax consultation sessions during the filing period.

7. FAQ

I am on a work visa in Japan. Do I need to pay Japanese income tax?

In most cases, yes. Foreign nationals living and working in Japan on mid-to-long-term visas are generally treated as tax residents and are subject to Japanese income tax on their worldwide income, as well as residence tax (juuminzei). Your employer typically withholds income tax from your salary each month and conducts a year-end adjustment (nenmatsu chousei) in December. Whether you also need to file a tax return depends on your individual situation. Confirm with your employer's payroll team or the zeimusho.

My child is 2 years old. Can I claim the dependent deduction?

No — children under 16 are not eligible for the income tax dependent deduction (fuyou koujo) in Japan. Instead, children in the child-benefit age range are supported through the monthly child benefit (jidou teate), which is a separate cash benefit program. See our child benefit guide for the current eligible ages, amounts, and how to apply.

Can I claim my parents in my home country as dependents on my Japanese tax return?

This depends on your parents' age and your specific circumstances, following the 2023 tightening of overseas dependent rules. Overseas relatives aged 30 to 69 are generally no longer eligible unless specific exceptions apply (studying abroad, disability, or sufficient remittances sent during the year). Relatives aged under 30 or 70 and over may still be eligible. Even where eligible, supporting documents proving the family relationship and financial support are required. Confirm your specific situation with the zeimusho or a zeirishi before filing.

Can I deduct my pregnancy and birth costs on my tax return?

Qualifying medical expenses — including many birth-related costs paid out of pocket — may be deductible through the medical expense deduction (iryouhi koujo), filed via the tax return (kakutei shinkoku). The deductible amount is generally the total qualifying expenses minus the applicable threshold (typically 100,000 yen or 5% of net income, whichever is less) — and any amounts reimbursed by the birth allowance (shussan ikuji ichijikin) or insurance must first be subtracted. Keep all receipts. See our birth cost guide for an overview of what you may have paid.

Can I use furusato nozei if I am a foreigner?

Yes, as long as you pay residence tax (juuminzei) in Japan. The program is not restricted by nationality. If you are liable for and paying residence tax, you can participate in furusato nouzei regardless of your visa type. The key condition is that you are a residence-tax payer — new arrivals or those with low incomes may not have residence tax liability in a given year and therefore would not benefit from the program. Confirm whether you pay residence tax with your payroll slip or your municipality's tax office.

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