The government and the ruling Liberal Democratic Party intend to raise the “annual income barrier” — the income threshold for the imposition of income tax — from the current level of ¥1.6 million to ¥1.78 million.

The LDP, the Democratic Party for the People and Komeito originally agreed in December 2024 to seek this change. The government and the LDP will continue coordinating with the DPFP and other parties on this issue, aiming to raise the threshold as one of the tax system revisions for fiscal 2026, which starts in April.

Income tax rates range from 5% to 45%. The amount of income tax an individual must pay is calculated based on the total amount of income they earn after subtracting basic deductions, employment income deductions and other deductions. Until 2024, the threshold........

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