What Changed This Year

These changes directly affect expat filers for 2026 income, filed in early 2027.

Part 1 — Do You Need to File?

Most salaried employees have taxes handled automatically through the year-end adjustment (nenmatsu chosei). You must file your own return (kakutei shinkoku) if any of the following apply:

• You have self-employment or business income — apply the statutory filing determination based on actual income, deductions, and applicable rules
• Your annual salary exceeds ¥20,000,000
• You have additional income where the net income (after allowable expenses — not gross receipts) exceeds ¥200,000
• You changed jobs and your final employer could not complete your year-end adjustment
• You received salary or employment income where Japanese withholding was not applied and the year-end adjustment was not completed (the ¥200,000 exemption does NOT apply to salary not subject to Japanese withholding — such salary must be declared regardless of amount)
• You have taxable real estate income where the applicable filing rules require a return (rental income alone is not an automatic filing trigger)
• You have dividend or investment income (filing may be mandatory, optional, or beneficial — apply the statutory rules for your taxation method)
• You have taxable crypto asset income and the applicable filing rules require a return
• You have foreign-source income and are a Non-Permanent Resident — apply the statutory foreign-source-income and remittance rules
• You want to claim the first-year mortgage (home loan) deduction
• Your eligible medical expenses were large enough to claim a deduction
• You have overseas income and want to claim a foreign tax credit
• You are leaving Japan before the filing window closes — determine whether to file before departure or appoint a tax representative

Part 2 — Documents You May Need

Identity & Registration

• My Number (Individual Number) — your 12-digit number from your My Number Card or notification slip
• My Number Card (the standard e-Tax authentication method — tax offices stopped issuing new ID/Password credentials from October 2025; existing credentials may remain usable during the transition period)
• Mynaportal app on your smartphone — for My Number Card authentication. Supported iPhones can also add the card to Apple Wallet.
• Residence Card (Zairyu Card) — for foreign nationals
• Passport — bring as backup ID if filing in person

From January 2025, tax offices no longer stamp paper copies of returns. If you file on paper, note the submission date on your own copy and retain it.

Banking

• Japanese bank account details (bank name, branch name, account number) — for receiving any refund or registering automatic payment

Income Documents

• Withholding slip (Gensen Choshuhyo) — from each employer you worked for in 2026
• Records of all freelance or side income received (invoices, payment statements, contracts)
• Dividend or investment income statements from your securities company
• Crypto asset transaction records — complete gains and losses for all 2026 transactions
• Real estate rental income records and expense receipts
• Overseas income records (bank transfers received, foreign payslips, employer statements)
• Public pension payment statements (if receiving a pension)

Deductions — Gather Receipts For

• Social insurance premiums paid (national health insurance, pension, employment insurance) — annual summary certificate or payment receipts
• Life insurance premium certificate — issued by your insurer, usually October/November
• Earthquake insurance premium certificate (if applicable)
• Eligible medical expenses for yourself and qualifying family members — including total paid, insurance and high-cost medical reimbursements received, and your total income. Threshold: ¥100,000 or 5% of income, whichever is lower. Maximum deduction: ¥2,000,000.
• Donation receipts — including Furusato Nozei (hometown tax) certificates
• Home loan year-end balance certificate from your lender (if claiming the housing loan deduction)
• Details of any dependents — name, My Number, relationship, and their annual income level

Part 3 — White Return (Shiro-iro Shinkoku)

Japan’s standard tax return. Does not include the Blue Return special deduction or three-year business loss carryforward. For most freelancers and sole proprietors, applying for Blue Return status is strongly worth considering.

Who Is It For?

• Employees who must file their own return for any reason listed in Part 1
• Freelancers or sole proprietors who have not applied for Blue Return status
• Anyone whose Blue Return application was rejected or revoked
• Those who prefer straightforward filing with simpler bookkeeping obligations

Tax Residency — Confirm Before Calculating

Determined under the Income Tax Act — entirely separate from your immigration visa or residence card status. Do not infer tax residency from immigration status.

• Special Reconstruction Income Tax of 2.1% is added on top of your calculated income tax for 2026 income — extended through December 31, 2047. From January 2027, the rate splits (1.1% Reconstruction + 1% Defence = 2.1% combined) — this does not affect 2026 income.
• Residence tax (jumin-zei) is a separate local tax billed by your municipality from June 2027, based on your 2026 income. Budget for it separately.

How to File

Option A: Online via e-Tax — Recommended

1. Go to e-tax.nta.go.jp
2. Log in using your My Number Card — the current standard authentication method
3. The guided wizard walks through each section in sequence
4. Submit electronically — refunds typically arrive within approximately 3 weeks

Option B: In Person at Your Local Tax Office (Zeimusho)

1. Find your local tax office at nta.go.jp using your postcode
2. Bring all documents from Part 2. Major offices in Tokyo and Osaka often have limited English support during peak filing season
3. Arrive early — offices issue queue numbers and become very busy in March

Option C: By Mail

1. Download the correct form from nta.go.jp, complete and sign
2. Post to your local tax office — the postmark date counts as the filing date
3. Retain your own dated copy — paper submissions are no longer returned with a stamp

Part 3A — Crypto Assets: 2026 Tax Treatment

Crypto asset gains are taxed as miscellaneous income (zatsu shotoku) for 2026, at progressive rates up to 55% (45% national income tax + 10% residence tax).

• Determine all crypto asset income and losses under the rules applicable to 2026 income
• Losses on crypto assets cannot be carried forward under 2026 rules — a net crypto loss at year end cannot be used in future returns
• Crypto losses can only offset other miscellaneous income within the same tax year
• Keep full transaction records: date, token, quantity, yen value at time of each transaction, exchange fees, and wallet addresses — retain for the statutory retention period; verify with the NTA
• Do not treat a crypto profit as an automatic mandatory filing trigger without applying the applicable statutory filing rules

Part 4 — Blue Return (Ao-iro Shinkoku)

Available to individuals earning business income, real estate income, or timber income. Not available to salary-only employees. Foreign residents are eligible on exactly the same terms as Japanese nationals.

Key Benefits

How to Apply for Blue Return Status

You must apply in advance — retroactive application is not possible.

Documents Blue Return Filers Need (in addition to Part 2)

• Profit and Loss Statement (Soneki Keisansho) — all business income and expenses for 2026
• Balance Sheet (Taishaku Taihyo-hyo) — assets and liabilities at December 31, 2026 (required for ¥550,000 and ¥650,000 tiers)
• Fixed asset register — all business equipment with depreciation schedule, noting acquisition dates (April 1, 2026 split matters for the small asset threshold)
• Receipts and documentation for all business expenses claimed throughout the year
• Complete business transaction records, kept current throughout the year — not reconstructed at filing time

Keeping records throughout the year is what determines whether you claim ¥650,000 or ¥550,000 versus falling to ¥100,000.

Part 5 — Filing Methods at a Glance

Part 6 — After You File

• Retain a dated copy of your completed return — tax offices no longer stamp paper copies
• Residence tax notices arrive from your municipality from June 2027, based on your 2026 income — budget for this separately, payable in instalments through May 2028
• Tax refunds are paid to the bank account registered on your return
• Tax owed is generally due by March 15, 2027 — check nta.go.jp for the NTA-published automatic bank-transfer withdrawal date
• Late or underpaid tax: several categories of additional tax exist, each calculated differently — do not apply a universal penalty rate; consult the NTA or a qualified tax accountant (zeirishi)

Useful Resources

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