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2025~Tax
💰 Income Tax Threshold Jumps to ¥1.78M!
Basic deduction ¥480K→¥950K — Great news for part-timers
¥1,030K
Old
¥1,780K
New
+¥750K
Increase
¥950K
New Deduction
❓ What is the "income wall"?
The "income wall" refers to the threshold where income tax kicks in and take-home pay decreases. The previous "¥1.03M wall" has been raised to "¥1.78M", meaning you can earn more without being taxed.
Before
¥1,030,000
→
After (+¥750K!)
¥1,780,000
📊 What changed?
| Item | Before | After |
|---|---|---|
| Basic deduction | ¥480,000 | ¥950,000 |
| Employment income deduction (min) | ¥550,000 | ¥830,000 |
| Tax-free threshold | ¥1,030,000 | ¥1,780,000 |
👷 Impact on part-time workers
- ✓Zero income tax up to ¥1.78M annual income
- ✓Work up to ~¥148,000/month tax-free
- ✓Can work more within dependent status
- ✓Higher take-home pay — "working at a loss" largely resolved
💑 Impact on spouse deduction
The spouse deduction threshold is also expected to be revised. If the spouse's income is ¥1.78M or less, the household head can still claim the spouse deduction. Check NTA announcements for details.
👥 Who's affected?
- ●Part-time and casual workers
- ●Spouses working within dependent status
- ●Student workers
- ●Those with side income
- ●Employers (withholding amounts change)
💡 Key points to know
1¥1.03M→¥1.78M, a ¥750K increase
2Basic deduction nearly doubled: ¥480K→¥950K
3Up to ~¥148,000/month income tax free
4Social insurance walls (¥1.06M/¥1.3M) still exist separately
5Applies from 2025 income onwards
Source:
Source: National Tax Agency🔗 Related Issues
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