'%3e%3cpath%20fill='%23eee'%20d='M0%200h512v512H0z'/%3e%3ccircle%20cx='256'%20cy='256'%20r='111.3'%20fill='%23d80027'/%3e%3c/g%3e%3c/svg%3e)
Inheritance tax in Japan 2026
Japan taxes heirs on a statutory-share computation: after the basic exemption (JPY 30 million plus 6 million per statutory heir), hypothetical shares are taxed at 10–55% and the total is re-allocated to actual takers.
The reach is long — Japanese-domiciled decedents' worldwide estates are taxed whoever inherits, and Japanese nationals stay in the net for 10 years after leaving.
At a glance
- top rate
- 55% above JPY 600 million per statutory share
- entry band
- JPY 30m + 6m per statutory heir exempt
- tax year basis
- Per death; return and payment within 10 months
- filing deadline
- 10 months from death; gift tax returns 1 February – 15 March
- residency basis
- Worldwide where the deceased or Japanese-national heir was Japan-domiciled (10-year tail); otherwise Japan-located assets
- regime flag
- Spouse credit: the larger of JPY 160 million or the statutory share is effectively tax-free
Rates
Inheritance tax on each statutory share (2026)
| Share value (JPY) | Rate | Deduction (JPY) |
|---|---|---|
| Up to 10,000,000 | 10% | — |
| 10m – 30m | 15% | 500,000 |
| 30m – 50m | 20% | 2,000,000 |
| 50m – 100m | 30% | 7,000,000 |
| 100m – 200m | 40% | 17,000,000 |
| 200m – 300m | 45% | 27,000,000 |
| 300m – 600m | 50% | 42,000,000 |
| Over 600m | 55% | 72,000,000 |
Marginal rates apply within each band.
Gift tax (annual, 2026)
| Rate | Base | Applies to |
|---|---|---|
| 10% – 55% | Gifts above the JPY 1.1 million annual exemption | Steeper brackets than inheritance tax; softer table for gifts from lineal ascendants to adults |
| 20% | Above JPY 25m special deduction (+1.1m annual from 2024) | Early-settlement election: gift tax becomes a credit against eventual inheritance tax |
| 0% | Up to JPY 20 million | Once-per-spouse gift of a residence after 20 years of marriage |
| 0% | Up to JPY 5m / 10m | Housing-purchase funds from lineal ascendants (energy-saving homes higher) — extended to end-2026 |
Thresholds & allowances
- Basic exemptionJPY 30m + 6m per statutory heir
Computed on statutory heirs regardless of who actually inherits
- Life insurance / retirement allowanceJPY 5m per statutory heir each
Separate exemptions for death proceeds and death retirement payments
- Gift clawback7 years (phasing in)
Pre-death gifts pull back into the estate — extended from 3 years by the 2023 reform
- Non-family surcharge+20%
Heirs other than spouse, children and parents pay 120% of their allocated tax
Residency
Residency trigger
Domicile drives everything: a Japan-domiciled deceased (or donee/heir) means worldwide taxation, and Japanese nationals or their assets stay caught for 10 years after departure; only fully foreign families with only foreign assets escape.
Non-resident treatment
Foreign heirs of Japan-located assets always pay; the sole estate-tax treaty is with the United States, and foreign death taxes credit against the Japanese bill.
Notes
- The statutory-share computation means the total tax is fixed by family structure — disinheriting someone doesn't cut the bill.
- Minors deduct JPY 100,000 per year to age 18, the disabled JPY 100,000–200,000 per year to 85.
- Small business and residential land valuations can be reduced substantially before tax.
- The education-fund gift exemption (JPY 15 million via trust) ends 31 March 2026 without extension under the 2026 reform.
FAQ
How much can heirs receive tax-free in Japan?
The estate deducts JPY 30 million plus 6 million per statutory heir; a surviving spouse then effectively pays nothing on the larger of JPY 160 million or their statutory share.
Does Japanese inheritance tax follow expatriates?
Yes — Japanese nationals (as deceased or heir) remain within worldwide scope for 10 years after giving up Japanese domicile; long-term foreign residents can be caught too.
How do lifetime gifts work?
Each recipient has a JPY 1.1 million annual exemption, with 10–55% above; gifts within 7 years of death claw back into the estate, and an early-settlement election taxes gifts at 20% over JPY 25 million as a credit against the eventual inheritance tax.
Figures: tax year 2026, compiled from public sources. Not tax advice.