Is it true that "pension recipients do not need to file a final tax return"?

“People who live only on their pension do not need to file a final tax return. Tax is already taken out of the pension, so apparently there is nothing more to pay.” Have you heard something like this from someone who has just retired and started living on a pension, or from their family?

Four tax terms, explained first

Here are plain-language explanations of the terms used in this article.

• Final tax return (kakutei shinkoku) = the procedure of calculating your income and tax for one year and reporting them to the tax office.
• Public pensions, etc. (kōteki nenkin tō) = pensions received from public schemes, such as the National Pension and the Employees’ Pension.
• Miscellaneous income (zatsu shotoku) = income, such as pensions, that does not fall into any other income category. Pensions are counted here.
• Withholding (gensen chōshū) = having tax deducted in advance when you receive your pension.

Conclusion

The answer is “conditional.” Even if you live only on your pension, you must file a final tax return once you go beyond the conditions. Below, we look at the basis for this step by step.

Pensions are not “tax-free”

Pensions are taxed. According to the National Tax Agency (NTA), public pensions, etc. are taxed in the following way.

公的年金等は、年金の収入金額から公的年金等控除額を差し引いて所得金額を計算します。［2］

Reference translation (unofficial): For public pensions, etc., the amount of income is calculated by subtracting the deduction for public pensions, etc. from the amount of pension revenue.

(NTA Tax Answer No.1600 "Taxation of public pensions, etc."; original in Japanese)

In plain terms: note that the amount of pension you receive is not itself what gets taxed. The basis for calculating tax is the amount left after subtracting the “deduction for public pensions, etc.” from the revenue.

In addition, when you receive your pension, tax is, as a rule, withheld.

公的年金等の支払を受けるときは、原則として収入金額からその年金に応じて定められている一定の控除額を差し引いた額に5.105パーセントを乗じた金額が源泉徴収されます。［2］

Reference translation (unofficial): When you receive payment of public pensions, etc., as a rule, an amount equal to 5.105 percent of the revenue minus a fixed deduction set for that pension is withheld.

The wording is a little stiff, so here it is in plain terms: each time you receive your pension, tax equal to 5.105% of the revenue minus a fixed deduction is taken out in advance. The part of the rumor that says “tax is taken out of the pension” is correct.

How much income does this come to? In the NTA’s worked example (a person aged 65 or over whose income other than pensions is ¥5,000,000), the miscellaneous income on pension revenue of ¥3,500,000 is calculated as follows.

3,500,000円×75％-275,000円＝2,350,000円［2］

Reference translation (unofficial): ¥3,500,000 × 75% − ¥275,000 = ¥2,350,000

For pension revenue of ¥3.5 million, the income is ¥2.35 million. The NTA says that people who still have an amount left after subtracting income deductions from this income settle their tax through a final tax return.

公的年金等に係る雑所得の金額から所得控除を差し引くと残額がある方は、確定申告で税額を精算することとなります。［2］

Reference translation (unofficial): If an amount remains after subtracting income deductions from the amount of miscellaneous income from public pensions, etc., the tax is settled through a final tax return.

(Same source as above; original in Japanese)

Conditions under which no final tax return is needed

So when is a final tax return unnecessary, even though tax remains on pension income? Article 121, paragraph 3 of the Income Tax Act sets out when recipients of public pensions, etc. do not have to file.

その年において第三十五条第三項（雑所得）に規定する公的年金等（以下この条において「公的年金等」という。）に係る雑所得を有する居住者で、その年中の公的年金等の収入金額が四百万円以下であるものが、その公的年金等の全部（第二百三条の七（源泉徴収を要しない公的年金等）の規定の適用を受けるものを除く。）について第二百三条の二（公的年金等に係る源泉徴収義務）の規定による所得税の徴収をされた又はされるべき場合において、その年分の公的年金等に係る雑所得以外の所得金額（利子所得の金額、配当所得の金額、不動産所得の金額、事業所得の金額、給与所得の金額、山林所得の金額、譲渡所得の金額、一時所得の金額及び公的年金等に係る雑所得以外の雑所得の金額の合計額をいう。）が二十万円以下であるときは、前条第一項の規定にかかわらず、その年分の課税総所得金額又は課税山林所得金額に係る所得税については、同項の規定による申告書を提出することを要しない。［1］

Reference translation (unofficial): Where a resident who in a given year has miscellaneous income from public pensions, etc. as prescribed in Article 35, paragraph 3 (Miscellaneous Income) (referred to in this Article as “public pensions, etc.”) and whose revenue from public pensions, etc. during that year is ¥4,000,000 or less has had, or should have had, income tax collected under Article 203-2 (Obligation to Withhold Tax on Public Pensions, etc.) on all of those public pensions, etc. (excluding those to which Article 203-7 (Public Pensions, etc. Not Subject to Withholding) applies), and the amount of that year’s income other than miscellaneous income from public pensions, etc. (meaning the total of interest income, dividend income, real property income, business income, employment income, timber income, capital gains, occasional income, and miscellaneous income other than that from public pensions, etc.) is ¥200,000 or less, that resident is not required, notwithstanding paragraph 1 of the preceding Article, to file the return under that paragraph for income tax on taxable total income or taxable timber income for that year.

(Income Tax Act, Article 121, paragraph 3; original in Japanese)

The wording is a little stiff, so here it is in plain terms: you do not need to file a final tax return when you meet all three of the following conditions.

1. Your pension revenue is ¥4,000,000 or less.
2. Tax has been (or should have been) withheld on all of your pensions.
3. Your income other than pensions is ¥200,000 or less.

The NTA also explains the same rule in plainer form.

平成23年分以後は、その年において公的年金等に係る雑所得を有する居住者で、その年中の公的年金等の収入金額が400万円以下であり、かつ、その年分の公的年金等に係る雑所得以外の所得金額が20万円以下である場合には確定申告の必要はありません。［2］

Reference translation (unofficial): From the 2011 tax year onward, a resident who has miscellaneous income from public pensions, etc. in a given year does not need to file a final tax return if the revenue from public pensions, etc. during that year is ¥4,000,000 or less and the amount of that year’s income other than miscellaneous income from public pensions, etc. is ¥200,000 or less.

(NTA Tax Answer No.1600 "Taxation of public pensions, etc.", main text excluding Note 2; original in Japanese)

“¥4 million” and “¥200,000” measure different things

There is one point here that is easy to get wrong. “¥4 million” refers to your pension revenue, while “¥200,000” refers to your income other than pensions. If you mix up the two, you will reach the wrong answer.

Let us look at two fictional people.

Both have pension revenue of ¥4 million or less. What separates them is whether their income other than pensions is ¥200,000 or less. If you have earnings besides your pension, note that the test looks at the amount of income, not the amount of revenue.

Pitfalls

There are three pitfalls.

The first is that when the amount of a pension is small, the withholding treatment changes. Article 203-7 of the Income Tax Act provides as follows.

その年中に支払を受けるべき当該公的年金等の額がその年最初に当該公的年金等の支払を受けるべき日の前日の現況において政令で定める金額に満たないときは、当該公的年金等については、第二百三条の二（源泉徴収義務）の規定による所得税の徴収及び納付は、要しないものとする。［3］

Reference translation (unofficial): Where the amount of the public pensions, etc. to be received during the year is, as of the day before the first day in that year on which those public pensions, etc. are to be received, less than the amount specified by Cabinet Order, the collection and payment of income tax under Article 203-2 (Obligation to Withhold) are not required for those public pensions, etc.

(Income Tax Act, Article 203-7; original in Japanese)

The “amount specified by Cabinet Order” is ¥1,180,000.

法第二百三条の七（源泉徴収を要しない公的年金等）に規定する政令で定める金額は、百十八万円とする。［4］

Reference translation (unofficial): The amount specified by Cabinet Order referred to in Article 203-7 (Public Pensions, etc. Not Subject to Withholding) of the Act is ¥1,180,000.

(Order for Enforcement of the Income Tax Act, Article 319-12; original in Japanese)

In plain terms: if the pension you receive in a year is less than ¥1,180,000, no tax is withheld when you receive it. When your pensions include one from which no tax is withheld, whether you meet the third condition of the no-filing rule (tax collected on all of your pensions) depends on the combination of pensions you receive. If you have only pensions and your income stays small, you may still not need to file. If you are unsure, you can ask at the tax office’s consultation service.

The second is that you may be able to get tax back. Even people who do not need to file can file a return to use income deductions.

この場合であっても、例えば、医療費控除や社会保険料控除など各種の所得控除の適用による所得税の還付を受けるための確定申告をすることができます。［2］

Reference translation (unofficial): Even in this case, you can file a final tax return to receive a refund of income tax by applying various income deductions, such as the medical expense deduction or the social insurance premium deduction.

(NTA Tax Answer No.1600 "Taxation of public pensions, etc.", Note 1; original in Japanese)

A refund means getting back tax you have overpaid. In a year with large medical expenses, filing a return may get you some tax back. Not needing to file does not mean you are not allowed to file.

The third is that inhabitant tax is a separate matter.

公的年金等以外の所得金額が20万円以下で確定申告の必要がない場合であっても、住民税の申告が必要な場合があります。［2］

Reference translation (unofficial): Even where no final tax return is needed because income other than public pensions, etc. is ¥200,000 or less, an inhabitant tax return may be required.

(NTA Tax Answer No.1600 "Taxation of public pensions, etc.", Note 2; original in Japanese)

Even if you do not need to file a final income tax return, you may separately need to file an inhabitant tax return with your city, ward, town or village.

What to do

Summary

“Pension recipients do not need to file a final tax return” is conditional.

• If your pension revenue is ¥4 million or less and your income other than pensions is ¥200,000 or less, you do not need to file a final tax return［1］［2］.
• Pensions are not tax-free; the revenue minus the deduction for public pensions, etc. is miscellaneous income［2］.
• Even if you do not need to file, you can file a refund return. A separate inhabitant tax return may be required［2］.

Keep your pension withholding slip at hand, and start by checking the two conditions: ¥4 million and ¥200,000.

Sources

• ［1］Income Tax Act, Article 121, paragraph 3 (e-Gov Law Search, Japanese)　Checked: 2026-10-09
• ［2］No.1600 Taxation of public pensions, etc. — NTA Tax Answer (Japanese)　Checked: 2026-10-09
• ［3］Income Tax Act, Article 203-7 (e-Gov Law Search, Japanese)　Checked: 2026-10-09
• ［4］Order for Enforcement of the Income Tax Act, Article 319-12 (e-Gov Law Search, Japanese)　Checked: 2026-10-09

Note: This article is based on laws and official information as of October 11, 2026. It is a translation of the Japanese original; if the two differ, the Japanese version prevails. Quotations from laws and official sources are given in the original Japanese, followed by unofficial reference translations. Sources are based on laws (e-Gov) and official materials of the NTA, all in Japanese. If a correction is needed after publication, a correction record will be added at the end of this article (Correction policy).