Retirement Income Deduction (Japan)
Enter your years of service to instantly calculate Japan's retirement income deduction — the core of how a lump-sum retirement payment is taxed. Handles the 20-year threshold, rounding partial years up, and the extra 1,000,000 yen for disability retirement. Enter the payment to also estimate the taxable retirement income.
Input
Years of service
Any partial year is rounded up to a full year (e.g. 10 years 3 months counts as 11 years).
Enter it to also estimate the taxable retirement income.
Result
Retirement income deduction (10 years of service)
¥4,000,000
Years used in calculation
10 yr
Base deduction
¥4,000,000
How it works
- The retirement income deduction is 400,000 yen × years of service for 20 years or less (a minimum of 800,000 yen applies), and 8,000,000 yen + 700,000 yen × (years − 20) for more than 20 years.
- Any partial year of service is rounded up to a full year (for example, 10 years and 3 months counts as 11 years). Less than one year of service still counts as one year.
- If the retirement is directly caused by the person becoming disabled, an extra 1,000,000 yen is added to the deduction above.
- If you enter the lump-sum payment, the tool shows the amount remaining after the deduction and estimates the taxable retirement income = (payment − deduction) × 1/2 (truncated to the nearest 1,000 yen). If the payment is within the deduction, none of it is taxable.
- The '× 1/2' step is the general case. For company officers with 5 years or less of service (specified officer retirement allowances) and certain short-term retirement allowances, the 1/2 rule may be restricted; this tool does not account for those.
- Receiving multiple retirement payments in the same year, or having received one in a prior year, can change how years of service are counted. Confirm the exact tax and take-home amount with your employer, a tax accountant, or the National Tax Agency. Use these figures as estimates only.
Related calculators
Retirement Allowance + iDeCo Lump-Sum Tax Simulator (Japan)
MoneyEstimates 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.
Open calculator →Retirement Allowance Amount Calculator (Years of Service & Base Salary)
MoneyEnter your base monthly salary, years of service, and reason for leaving (voluntary or company) to instantly estimate your retirement allowance using the base-salary-linked method. You can also set the months paid per year of service and the voluntary-resignation adjustment rate.
Open calculator →Japan Pension Take-Home Pay Calculator (After Tax & Insurance)
MoneyEnter your gross annual pension to estimate the take-home amount after income tax, resident tax, and social insurance. Supports the public pension deduction (which differs under and over age 65) and shows your monthly take-home and the breakdown of deductions.
Open calculator →Mortgage Tax Deduction Calculator
MoneyEstimate your mortgage interest tax deduction from your year-end loan balance. Enter the balance and a deduction rate (e.g. 0.7%) to instantly see the yearly credit, with optional eligible-balance cap and deduction period.
Open calculator →
Reviews
Tell us what you think of this calculator.
Write a review
- Home
Retirement Income Deduction (Japan)