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Japan gov't mulls raising tax-free income threshold from January 2026 The government and the ruling parties are considering applying a higher income tax exemption threshold from January 2026, in a move to incentivize part-timers to work longer hours amid Japan's labor shortage, a source close to the matter said Tuesday. The schedule is expected if the government decides on raising the threshold for imposing income tax, currently set at a minimum annual income of 1.03 million, in its tax reform plan for the next fiscal year starting April. Related bills will be subsequently deliberated in the Diet for likely enactment around the spring. The ruling Liberal Democratic Party and its coalition partner the Komeito party, which lost their majority in the powerful House of Representatives in October's general election, have agreed to accept a request from a minor opposition party, the Democratic Party for the People, to increase the nontaxable income threshold. ©SHIRSENDU KARMAKAR #Japan

Japan gov't mulls raising tax-free income threshold from January 2026 The government and the ruling parties are considering applying a higher income tax exemption threshold from January 2026, in a move to incentivize part-timers to work longer hours amid Japan's labor shortage, a source close to the matter said Tuesday. The schedule is expected if the government decides on raising the threshold for imposing income tax, currently set at a minimum annual income of 1.03 million, in its tax reform plan for the next fiscal year starting April. Related bills will be subsequently deliberated in the Diet for likely enactment around the spring. The ruling Liberal Democratic Party and its coalition partner the Komeito party, which lost their majority in the powerful House of Representatives in October's general election, have agreed to accept a request from a minor opposition party, the Democratic Party for the People, to increase the nontaxable income threshold. ©SHIRSENDU KARMAKAR #Japan