MoneyInJapan

Pension income tax

Public and foreign pensions, the statutory deduction, withholding, and the filing exception.

Direct answers

Public pensions are miscellaneous income after a statutory public-pension deduction; a resident with no more than ¥4M of qualifying public-pension receipts and ¥200,000 of other income may skip a national return, but foreign pensions without Japanese withholding can remove that exception.

Tax year 2026

Effective: 2026-01-01 to 2026-12-31

Professional review pending — treat as draft and confirm with the authorities.

Key points

  • Public pensions are miscellaneous income after the public-pension deduction.
  • Filing exception: ≤¥4M public pension + ≤¥200,000 other income.
  • Foreign pensions without Japanese withholding can block the exception.
  • You may still file to claim deductions or a resident-tax declaration.

How pensions are taxed

Public pensions (Japanese and, for residents, foreign) are miscellaneous income after a statutory public-pension deduction that varies with age and pension amount. Japanese public pensions are typically subject to withholding. A resident with no more than ¥4M of qualifying public-pension receipts and no more than ¥200,000 of other income may be exempt from filing a national return.

Foreign pensions and filing

A foreign pension not subject to Japanese withholding can prevent use of the pension non-filing rule, so recipients of overseas pensions often must file. Even when the exception applies, you may choose to file to claim medical or other deductions, and a resident-tax declaration may still be required. Keep pension statements and any foreign-tax records.

Who this is for

  • Pensioners in Japan
  • People receiving foreign pensions

What this is not

  • iDeCo/DC payout taxation (see retirement)
Important cautions
  • A foreign pension can remove the ¥4M filing exception — check before assuming you need not file.

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.

Sources