(Excerpt)
The wording is rather stiff, so here it is in plain terms. If you have a deductible spouse, ¥380,000 is subtracted in the income tax calculation (¥480,000 depending on the spouse's age; this is for a taxpayer whose own total income amount is ¥9,000,000 or less). The NTA explains it as "you can receive an income deduction of a certain amount. This is called the spouse deduction"［1］. If the spouse is 70 or older, the spouse is an elderly deductible spouse, and the deduction is ¥480,000. The question is who can be a "deductible spouse." This is where the income limit comes in. The test uses the spouse's "total income amount." For salary, the total income amount is the revenue minus the employment income deduction. This is Income Tax Act, Article 28, paragraph 2 (e-Gov Law Search). > 給与所得の金額は、その年中の給与等の収入金額から給与所得控除額を控除した残額とする。[［7］](#ref-7) > > Reference translation (unofficial): The amount of salary income is the remainder after deducting the amount of the employment income deduction from the amount of revenue from salary, etc. for the year. The NTA's Tax Answer No.1191 "Spouse deduction" states the income limit as follows. > 年間の合計所得金額が62万円以下（注）（令和7年分は58万円以下、令和2年分から令和6年分までは48万円以下、令和元年分以前は38万円以下）であること。給与のみの場合は給与収入が136万円以下（令和7年分は123万円以下、令和6年分以前は103万円以下）[［1］](#ref-1) > > Reference translation (unofficial): The total income amount for the year must be ¥620,000 or less (Note) (¥580,000 or less for tax year 2025 (Reiwa 7); ¥480,000 or less for tax years 2020 (Reiwa 2) to 2024 (Reiwa 6); ¥380,000 or less for tax year 2019 (Reiwa 1) and earlier). If the income is salary only, the salary revenue must be ¥1,360,000 or less (¥1,230,000 or less for tax year 2025 (Reiwa 7); ¥1,030,000 or less for tax year 2024 (Reiwa 6) and earlier).(Excerpt)
Here is the answer to the "¥1.03 million wall." ¥1.03 million is the figure for tax year 2024 (Reiwa 6) and earlier. It is ¥1,230,000 for tax year 2025 (Reiwa 7) and ¥1,360,000 from tax year 2026 (Reiwa 8)[［1］](#ref-1). The amount of the wall is set by the amounts of two deductions. One is the limit on the spouse's income. The other is the minimum guaranteed amount of the employment income deduction, which is subtracted from salary. According to the NTA's Q&A, the fiscal 2026 (Reiwa 8) tax reform raised both of them. > 給与所得控除の最低保障額が、65 万円から74 万円に引き上げられました。[［8］](#ref-8) > > Reference translation (unofficial): The minimum guaranteed amount of the employment income deduction has been raised from ¥650,000 to ¥740,000.(Excerpt)
The income limit also rises from ¥580,000 to ¥620,000[［1］](#ref-1). ¥620,000 plus ¥740,000 gives ¥1,360,000, the new wall figure. On when the reform applies, the same Q&A says "it takes effect on December 1, 2026 (Reiwa 8) and applies to income tax for tax year 2026 (Reiwa 8) and later"[［8］](#ref-8). The NTA page also says "this is the amount that takes effect on December 1, 2026 (Reiwa 8) and applies from tax year 2026 (Reiwa 8)"[［1］](#ref-1). In short, the "¥1.03 million wall" is an income tax wall that really existed in the past. From tax year 2026 (Reiwa 8) it becomes ¥1,360,000 (in force from December 1, 2026; the effective date is December 1, but it applies by tax year). ## Income tax on the person starts at ¥1,780,000 There is another figure that is easy to confuse with these. ¥1,360,000 is the line for whether a person can be covered by the spouse deduction or dependent deduction (a guide to the salary revenue of the spouse or relative). The word "dependent" also overlaps with the social insurance "dependent" (insured dependent); we come back to that in the second half of the article. The line at which income tax starts on the part-time worker is higher than this. According to the NTA's No.1800 "Up to how much part-time income is free of income tax," if the only income is part-time pay and there is no other income, no income tax is charged as long as the revenue is ¥1,780,000 or less[［11］](#ref-11). > パートの収入金額が178万円以下（注1）（給与所得控除額74万円に所得税の基礎控除額104万円を加えた金額）で、ほかに所得がなければ所得税はかかりません[［11］](#ref-11) > > Reference translation (unofficial): If the part-time revenue is ¥1,780,000 or less (Note 1) (the employment income deduction of ¥740,000 plus the income tax basic deduction of ¥1,040,000) and there is no other income, income tax is not charged.(Excerpt. Note 1 means "the amount that takes effect on December 1, 2026 (Reiwa 8) and applies from tax year 2026 (Reiwa 8)")
So income tax on the part-time worker starts only when revenue goes over ¥1,780,000. The dependency line (¥1,360,000) and the line at which the person's own tax starts (¥1,780,000) are different figures. Mixing the two leads to the misunderstanding that "once you go over ¥1,360,000, that person's income tax starts right away." The ¥1,780,000 is the sum of the employment income deduction and the income tax basic deduction. The minimum guaranteed amount of the employment income deduction is ¥690,000 under the basic rule［13］, and for tax years 2026 and 2027 (Reiwa 8 and 9) a special ¥50,000 is added to make ¥740,000. The basic deduction is ¥1,040,000 for tax years 2026 and 2027 (Reiwa 8 and 9)［12］. The special measure ends from tax year 2028 (Reiwa 10), so this line will change. A policy of reviewing the deduction amounts in line with prices has also been announced［12］［13］. As for the special measure, the NTA's Q&A on the fiscal 2026 (Reiwa 8) tax reform states "the minimum guaranteed amount of the employment income deduction has been raised from ¥650,000 to ¥740,000," and says ¥740,000 applies when the salary revenue for tax years 2026 and 2027 (Reiwa 8 and 9) is ¥691,000 or more and under ¥2,200,000［8］. It is a special measure in force from December 1, 2026 (Reiwa 8) and applying from tax year 2026 (Reiwa 8)［11］. There is a practical point about when the reform applies. According to the NTA's Q&A, nothing changes in withholding on salary paid up to November 2026 (Reiwa 8), and for tax year 2026 (Reiwa 8) the tax is settled at the year-end adjustment in December, using the raised basic deduction and other amounts［8］. However, in the year-end adjustment of a person who received their last salary on or before November 30, 2026 (Reiwa 8), such as someone who left work through death during 2026 (Reiwa 8) or became a non-resident partway through the year, the revised deductions and other amounts do not apply, and to receive them the person must file a final tax return (kakutei shinkoku) or similar［8］. The special deduction for specified relatives (children aged 19 to 22) and similar is not covered in this article. All of the wall figures up to here are for income tax. For resident tax, the basic deduction and other standards are separate from income tax, so the amount charged differs even for the same revenue. This article looks at the income tax walls. ## The dependent relative walls are moving too The "¥1.03 million wall" is not only about spouses. The "dependent deduction," for people who support children or parents, has a line built the same way. The deduction amount for the dependent deduction is set by Income Tax Act, Article 84 (e-Gov Law Search). > 居住者が控除対象扶養親族を有する場合には、その居住者のその年分の総所得金額、退職所得金額又は山林所得金額から、その控除対象扶養親族一人につき三十八万円（その者が特定扶養親族である場合には六十三万円とし、その者が老人扶養親族である場合には四十八万円とする。）を控除する。[［9］](#ref-9) > > Reference translation (unofficial): Where a resident has a deductible dependent relative, ¥380,000 (¥630,000 if the person is a specified dependent relative, and ¥480,000 if the person is an elderly dependent relative) per deductible dependent relative is deducted from the resident's total income amount, retirement income amount or forestry income amount for that year.(Excerpt)
The test for whether a relative can be a deductible dependent relative also has an income limit. The NTA's Tax Answer No.1180 "Dependent deduction" says the following. > 年間の合計所得金額が58万円以下（注）（令和2年分から令和6年分までは48万円以下）であること。（給与のみの場合は給与収入が123万円以下（令和2年分から令和6年分までは103万円以下））[［2］](#ref-2) > > Reference translation (unofficial): The total income amount for the year must be ¥580,000 or less (Note) (¥480,000 or less for tax years 2020 (Reiwa 2) to 2024 (Reiwa 6)). (If the income is salary only, the salary revenue must be ¥1,230,000 or less (¥1,030,000 or less for tax years 2020 (Reiwa 2) to 2024 (Reiwa 6)).)(Excerpt)
This limit is also raised from tax year 2026 (Reiwa 8). The same page says "the amount that takes effect on December 1, 2026 (Reiwa 8) and applies from tax year 2026 (Reiwa 8) is ‘¥620,000 or less’"[［2］](#ref-2). In short, the ¥1.03 million that has been used as the line for whether part-time or side-job income lets a person be a family member's dependent becomes ¥1,360,000 for tax year 2026 (Reiwa 8). It is the same for a spouse and for a child or parent. ## Going over the wall is not zero: the special spouse deduction So if the spouse's income goes over the limit, does the income tax deduction disappear all at once? This is the biggest mistake in the rumor. Even when you cannot receive the spouse deduction, another deduction is provided. It is the special spouse deduction. The NTA explains it as follows. > 配偶者の所得金額に応じて、一定の金額の所得控除が受けられる場合があります。これを配偶者特別控除といいます。[［10］](#ref-10) > > Reference translation (unofficial): Depending on the spouse's income, you may be able to receive an income deduction of a certain amount. This is called the special spouse deduction.(Excerpt)
The original text of the law is Income Tax Act, Article 83-2 (e-Gov Law Search). > 居住者が生計を一にする配偶者（第二条第一項第三十三号（定義）に規定する青色事業専従者等を除くものとし、合計所得金額が百三十三万円以下であるものに限る。）で控除対象配偶者に該当しないもの（合計所得金額が千万円以下である当該居住者の配偶者に限る。）を有する場合には、その居住者のその年分の総所得金額、退職所得金額又は山林所得金額から次の各号に掲げる場合の区分に応じ当該各号に定める金額を控除する。[［3］](#ref-3) > > Reference translation (unofficial): Where a resident has a spouse who shares the resident's livelihood (excluding persons such as blue-return business dependents prescribed in Article 2, paragraph 1, item 33 (Definitions), and limited to those whose total income amount is ¥1,330,000 or less) and who does not fall under a deductible spouse (limited to spouses of residents whose total income amount is ¥10,000,000 or less), the amount prescribed in each of the following items, according to the category of case set out in that item, is deducted from the resident's total income amount, retirement income amount or forestry income amount for that year.(Excerpt)
In plain terms: if the spouse's total income amount is ¥1,330,000 or less and the spouse is not covered by the spouse deduction, and the taxpayer's own total income amount is ¥10,000,000 or less, the taxpayer can receive a deduction that depends on the spouse's income[［3］](#ref-3). The maximum deduction is ¥380,000 (when the taxpayer's own total income amount is ¥9,000,000 or less)[［10］](#ref-10). The key point is how the deduction shrinks. From around the point where the spouse's total income amount goes over ¥950,000, the deduction shrinks step by step, and once it goes over ¥1,300,000 it is ¥30,000 (when the taxpayer's own total income amount is ¥9,000,000 or less)[［10］](#ref-10). Over ¥1,330,000 it is no longer available[［3］](#ref-3). Tax does not jump the moment you cross the wall. The amount of the deduction decreases little by little. The tax that increases is only the amount by which this deduction has decreased. ## The wall figures count income: for salary-only people, a revenue guide too Here is one more important point. What is used to judge the wall is not the amount received (revenue). It is the total income amount. Still, it is hard for a salary-only person to calculate income every time. So for salary-only cases the NTA also gives a guide in terms of "salary revenue of ¥1,360,000 or less"[［1］](#ref-1). Let's compare this guide with the income-based test using concrete examples.| Person | Breakdown of revenue | Wall judgment |
|---|---|---|
| Ms. A (wife)［1］ | Part-time revenue of ¥1,300,000 only | Salary only, and revenue is ¥1,360,000 or less, so she is within the guide. Her income is 1,300,000 − 740,000 = ¥560,000, which is ¥620,000 or less. She is covered by the spouse deduction |
| Ms. B (wife) | Part-time revenue of ¥1,300,000 + ¥200,000 profit from online sales | Because she has income other than salary, the revenue guide cannot be used. Part-time income of ¥560,000 (1,300,000 − 740,000) + profit of ¥200,000 = total income amount of ¥760,000. It is over ¥620,000, so she is not covered by the spouse deduction; it is ¥950,000 or less, so the special spouse deduction of ¥380,000 applies (when the taxpayer's own total income amount is ¥9,000,000 or less) |
| Wall figure | What it is | Current status |
|---|---|---|
| ¥1.03 million | Income tax, spouse deduction and dependent deduction line (a guide to salary revenue; in terms of income, ¥480,000 up to tax year 2024 (Reiwa 6))［1］［2］ | Up to tax year 2024 (Reiwa 6). ¥1,360,000 for tax years 2026 and 2027 (Reiwa 8 and 9) (a figure that includes the special measure of ¥740,000 for the employment income deduction) |
| ¥1.33 million | Income tax, upper limit for the special spouse deduction (the spouse's income; in terms of salary revenue, under ¥2,070,000 for tax year 2026 (Reiwa 8))［11］ | Still in force |
| ¥1.78 million | Income tax, line at which tax starts on the part-time worker (salary revenue; tax year 2026 (Reiwa 8))［11］ | The special measure ends from tax year 2028 (Reiwa 10), so this line will change (a policy of reviewing the deduction amounts in line with prices has also been announced)［12］［13］ |