1.03 Million Yen Wall: Who Qualifies and What You Get
Learn how earning under ¥1.03 million can exempt you from income tax and help your spouse claim a dependent deduction.
This is a tax threshold for part-time workers in Japan that determines whether you must pay income tax and whether your spouse can claim you as a dependent.
Who it's for
This is for part-time workers whose total yearly earnings remain below ¥1.03 million.
What you get
If you stay under this limit, you are exempt from paying income tax. Additionally, your spouse may be able to claim a dependent deduction (known as 扶養控除) on their own taxes because of your income level.
What it costs you
To ensure you do not accidentally go over the limit, you will need to strictly track your monthly earnings and total yearly income.
The catch to know
If your earnings cross this specific threshold, you will become liable for income tax, and your spouse will lose the ability to claim the tax deduction for you.
How to apply
- Track your monthly shifts and earnings closely throughout the year.
- Ensure your total annual income does not exceed the threshold.
- Check with your household's primary taxpayer regarding their ability to claim your dependent deduction.