How To Apply For Resident Tax (Juminzei) Exemption in Japan in 2025

Save Money: Japan Resident Tax Exemption Guide 2025

Living and working in Japan is an incredible experience, but let’s be honest—navigating the tax system can be a headache. You’ve figured out your income tax, but then a new bill arrives from your city office for “Juminzei” or Resident Tax. If your income was low last year, you might not have to pay it! Securing a resident tax exemption can save you a significant amount of money.

This guide will walk you through everything you need to know, step-by-step. We’ll cover what resident tax is, who qualifies for an exemption, and exactly how to apply in 2025.

 

What is Resident Tax (Juminzei) in Japan?

First, what is this tax? Resident Tax (住民税, juminzei) is a local tax you pay to your city or ward office. It funds public services like schools, roads, trash collection, and local administration.

The most confusing part for new foreign workers is that juminzei is based on your previous year’s income.

This is why many people get a surprise bill in their second year in Japan. In your first year, you likely had no income in Japan from the previous year, so you paid nothing. But in June of your second year, you’ll be billed based on the income you earned in your first year.

Who Pays Resident Tax?

Anyone who is registered as a resident in a Japanese municipality as of January 1st and had a certain level of income in the previous year is required to pay. This includes foreign workers on various visas.

Can You Get a Resident Tax Exemption?

Yes, you absolutely can! The Japanese government provides a juminzei exemption for low income households to ease their financial burden.

The Main Condition: Low Annual Income

The primary reason for exemption is having a total income below a specific threshold in the previous calendar year (January 1 to December 31).

While the exact number varies slightly by city, a general rule of thumb is:

• For a single person (no dependents): Your total income in 2024 was around ¥1 million or less.
• With dependents: This income threshold for resident tax increases. For example, in many of Tokyo’s 23 wards, the threshold is ¥450,000 in taxable income. After standard deductions, this works out to a total income of around ¥1,000,000. For each dependent you support, the non-taxable income limit generally increases.

Important: Always check the official website of your local city or ward office (市役所, shiyakusho or 区役所, kuyakusho) for the exact income figures for your area.

Other Exemption Categories

You may also be exempt from resident tax if, as of January 1st, 2025, you are:

• Receiving public assistance benefits.
• A minor (under 18).
• A person with a certified disability.
• A widow, widower, or single parent.

How to Apply for Juminzei Exemption in 2025

This is the most crucial part. The exemption is not automatic. You must declare your income to your city office, even if it’s zero. If you don’t, they will assume you have income and send you a bill.

Step 1: Check Your Eligibility

Review your income statements from 2024 (like your 源泉徴収票, gensen-choshu-hyo) to see if your total income was below your city’s threshold.

Step 2: Gather Your Documents

You will generally need:

• Your Residence Card (在留カード, zairyu ka-do)
• Your My Number Card or notification slip
• Proof of your previous year’s income (if you have it)

Step 3: File Your Declaration (The Most Important Step)

There are two main ways to inform the city office of your low income:

1. File a Final Tax Return (確定申告, kakutei shinkoku): If you are a freelancer, had multiple jobs, or need to file a national tax return for any reason, do this. The national tax office automatically shares your income data with your city office.
2. File a Municipal Tax Declaration (住民税申告, juminzei shinkoku): This is the key for many people. If your company handled your taxes (year-end adjustment) but your income was still low, you must file this separate declaration directly with your city/ward office. This simple form declares your income from the previous year.

When and Where to File?

You must file your declaration between late January and March 15, 2025. If you miss the deadline, there is still a chance to apply for the exemption by filling out “Kakutei Shinkoku”. Haven’t heard about that?

Key Points for Resident Tax Exemption

• Resident tax (Juminzei) is a local tax based on your previous year’s income.
• You may be eligible for a resident tax exemption if your annual income was below your city’s threshold (generally around ¥1 million for a single person).
• This exemption is NOT automatic. You must declare your income.
• If you don’t file a national tax return, you must file a municipality tax declaration Japan form at your city/ward office.
• The deadline for filing is March 15, 2025.
• Filing this form prevents you from receiving an unexpected tax bill in June.

Don’t Miss Out on Your Tax Exemption

Navigating Japanese bureaucracy can be tough, but filing for tax exemption in Japan is a straightforward process that can save you money. By being proactive and filing a simple declaration, you ensure you only pay what you owe and keep your finances in order.

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Feeling overwhelmed by Japanese taxes or planning to leave Japan soon? Many foreign workers are eligible for a tax refund or a significant Pension Lumpsum Withdrawal payment after they depart. These processes can be complex, but you don’t have to handle them alone. If you have questions about maximizing your tax refund in Japan or need assistance with your pension lumpsum after leaving Japan, feel free to send us a message. The experts at HSB JAPAN are here to help you get the money you’re entitled to.

CONTACT US FOR A FREE CONSULTATION

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Frequently Asked Questions

1. I’m a student working part-time. Can I get a Japan tax exemption for students?
   Yes! If your part-time job income for the year was under the threshold (usually ¥1.03 million, but check your city’s rules), you are likely eligible for a resident tax exemption. You still need to file a municipal tax declaration to prove your income was low.
2. What happens if I miss the March 15th deadline?
   If you miss the deadline, the city office may estimate your income and send you a bill. If you receive a bill you believe is incorrect, go to the city office immediately with your proof of income. It’s much easier to handle it before the deadline.
3. When do you start paying resident tax in Japan?
   You typically start paying in June of your second year in Japan. The payment is based on the income you earned from January to December of your first year.
4. My company does my taxes. Do I still need to do something?
   If your company does a year-end adjustment (nenmatsu chosei) and your income was low, you still need to file a municipal tax declaration (juminzei shinkoku) yourself. The company’s report to the tax office doesn’t always serve this specific purpose for the city. It’s the safest way to avoid paying juminzei unnecessarily.
5. How does having a dependent affect the resident tax exemption?
   Having dependents (like a non-working spouse or a child you support) increases the income threshold for exemption. This is part of the system for tax reduction for dependents in Japan. You must declare your dependents on your tax forms to qualify for the higher income limit.