Retirement Allowance + iDeCo Lump-Sum Tax Simulator (Japan)
Estimates the tax when you receive a company retirement allowance and an iDeCo (defined contribution) lump sum in the same year, taxed together as retirement income. Because the retirement income deduction only uses the longer of your years of service and iDeCo enrollment once, it shows the taxable retirement income, income tax (incl. reconstruction tax), resident tax, total tax, and take-home amount together.
Input
Company retirement allowance
iDeCo (defined contribution) lump sum
Calculates the case where the retirement allowance and the iDeCo lump sum are received in the same year and taxed together as retirement income. The retirement income deduction uses only the longer of your years of service and iDeCo enrollment, once.
Result
Combined take-home amount (estimate)
¥22,219,678
Estimated from the combined payment ¥23,000,000 minus ¥780,322 in tax.
Combined payment
¥23,000,000
Retirement deduction (30 yrs)
¥15,000,000
Taxable retirement income
¥4,000,000
Income tax (incl. reconstruction tax)
¥380,322
Resident tax
¥400,000
Total tax
¥780,322
How it works
- A company retirement allowance and an iDeCo (defined contribution) lump sum are both classified as retirement income. Received in the same year, they are combined into a single retirement income, and the retirement income deduction can use only the longer of your years of service and iDeCo enrollment, once (overlapping periods cannot be counted twice).
- The retirement income deduction is 400,000 yen × years for 20 years or less (a minimum of 800,000 yen), and 8,000,000 yen + 700,000 yen × (years − 20) above 20 years. Any partial year is rounded up. Retirement directly caused by becoming disabled adds 1,000,000 yen.
- Taxable retirement income = (retirement allowance + iDeCo lump sum − deduction) × 1/2 (truncated to the nearest 1,000 yen). If the combined amount is within the deduction, none of it is taxable. The restrictions on the 1/2 rule for specified officer and short-term retirement allowances are not considered.
- Income tax applies the tax table to the taxable retirement income and adds the special reconstruction tax (2.1% of the base income tax), truncated to the yen. Resident tax is 10% of retirement income (4% prefectural + 6% municipal). Take-home = combined payment − income tax − resident tax.
- In practice, spacing out the years you receive each payment can let you use the deduction separately (iDeCo and retirement allowance timing has adjustment periods such as the '19-year rule'), changing the tax. This tool assumes both are taken together in the same year.
- These figures are estimates only. Prior-year retirement payments, timing adjustments, and your social insurance and dependents affect the actual tax and take-home. Confirm exact amounts with your employer, plan administrator, a tax accountant, or the National Tax Agency.
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Retirement Allowance + iDeCo Lump-Sum Tax Simulator (Japan)