Estimated tax payments in Japan
Who gets notices, the July and November installments, the calculation basis, and reduction applications.
If your prior-year return produces a sufficient prepayment base, the NTA sends a notice and you prepay income tax in two installments (July 31 and November 30), each about one-third of the base, reconciled on your next return — with a reduction application available if income drops.
Effective: 2026-01-01 to 2026-12-31
Professional review pending — treat as draft and confirm with the authorities.
Key points
- Triggered when your prepayment base from the prior year is high enough.
- Two installments: July 31 and November 30, each ~one-third of the base.
- It is a prepayment reconciled on the following year’s return.
- A reduction application is possible when current income falls substantially.
Who pays and how much
When your prior-year return leaves a prepayment base above the statutory line, the tax office notifies you and you prepay in July and November. Each installment is commonly one-third of the base. This is not an extra tax — it is your next year’s income tax paid early, and the two installments plus withholding are credited when you file.
Reduction applications
If your current-year income will be substantially lower — you closed a business, took leave, or lost a major client — you can apply to reduce the prepayment so you are not overpaying and waiting for a refund. Apply by the published deadline with supporting estimates. The final reconciliation still happens on your return.
Who this is for
- Freelancers and higher-income filers
- Anyone who got a prepayment notice
What this is not
- Most employees settled by withholding
- Skipping an installment accrues delinquent tax; apply for a reduction rather than simply not paying.
Frequently asked questions
Do I need to file a tax return in Japan?
Many employees do not, because tax is settled by year-end adjustment (年末調整). You generally must file (確定申告) if you have side income over ¥200,000, two or more employers, self-employment income, sizeable investment or crypto gains, or you want to claim deductions like large medical costs or a first-year mortgage credit. Filing season is Feb 16 – Mar 15 via e-Tax. When unsure, check the NTA guidance or ask a 税理士.