How to Register Dependents to Reduce Residence Tax in Japan

Residence tax (住民税 or juminzei) is a mandatory tax for anyone earning an income in Japan. However, you can reduce or even eliminate your residence tax by registering dependents appropriately, which can help you save money efficiently. In this article, HSB JAPAN explains the process and introduces our professional tax consultancy services to assist you in managing your taxes effectively while living in Japan.

1. What is Residence Tax in Japan?

Residence tax (住民税 or juminzei) is a local tax applied to both Japanese citizens and foreign residents earning an income in Japan. This tax is used to fund essential public services, such as education, welfare, waste management, disaster prevention, and cultural activities within the local municipality.

Anyone earning over ¥1,000,000 annually is generally required to pay residence tax.

To reduce residence tax to zero, you need to adjust your taxable income (給与所得, kyuuyo shotoku) to stay below the exemption threshold (非課税限度額, hikazei gendogaku) set by your city or ward.

2. How to Register Dependents to Reduce Residence Tax

Step 1: Determine Your Taxable Income

Your taxable income is calculated as:
Taxable Income = Total Annual Income – Deductions (insurance, dependents, etc.)

You can calculate your taxable income using online calculators provided by the Japanese Tax Agency. Input your annual income (年収, nenshuu), and it will display your taxable income. Get the link

Đăng ký bao nhiêu người phụ thuộc để thuế thị dân về 0

Step 2: Identify the Residence Tax Exemption Threshold

The exemption threshold varies depending on the number of dependents and the city or ward where you live. Each city is categorized into different zones (e.g., Zone 1, 2, or 3), which determine the exemption levels.

For example, in Tokyo (Zone 1), the exemption threshold is calculated as:
Exemption Threshold = (¥350,000 × Number of Family Members) + ¥100,000 + ¥210,000

The number of family members includes:

Đăng ký bao nhiêu người phụ thuộc để thuế thị dân về 0

Step 3: Compare and Adjust to Reduce Residence Tax to Zero

After determining your taxable income and the exemption threshold, compare the two:
Taxable Income < Exemption Threshold = No Residence Tax

For example:

If your income increases by approximately ¥300,000 annually, adding one more dependent may help you maintain exemption from residence tax.

About HSB JAPAN – Tax, Pension & Visa Consultancy

Navigating Japan’s tax system can be complex, especially for foreign residents. At HSB JAPAN, we specialize in tax refund consultancy, including residence tax, income tax, and pension claims. Our team provides:

Our goal is to simplify the process and help you maximize your savings. Contact HSB JAPAN today to make your financial management in Japan stress-free and efficient.

Có thể là hình ảnh về 2 người và văn bản

We hope this guide helps you understand how to reduce your residence tax in Japan. With the right adjustments and professional support from HSB JAPAN, you can optimize your financial planning and enjoy a more comfortable life in Japan.