Overview of deduction for employment income
Are wage earners allowed to subtract necessary expenses incurred for their work from the salary?
Employment income is calculated by subtracting the deduction for employment income from salaries and wages.
The amount of deduction for employment income is calculated using a fixed formula according to your salaries and wages. Therefore, actual expenses incurred are not subtracted when calculating employment income.
If your annual salaries and wages are less than 1,619,000 yen, 650,000 yen (as deduction for employment income) is subtracted from the amount.
For example, if your annual salaries and wages are 5,000,000 yen, the calculation is carried out as follows:
- (1) 5,000,000 yen / 4 = 1,250,000 yen (round down to the nearest 1,000)
- (2) 1,250,000 yen × 3.2 – 540,000 yen = 3,460,000 yen
- (3) The amount of employment income is obtained by the above calculation. The difference between the above amount and the amount of salaries and wages is the amount of deduction for employment income.
<<Reference>>
Calculation of the amount of employment income (for the year 2017.2018)
Calculation of the amount of employment income (for the year 2017.2018)
| Total earnings (A) |
Amount of employment income |
Total earnings (A) |
Amount of employment income | |
| Up to 650,999 |
0 yen | 1,628,000 to 1,799,999 |
A / 4 = B (round down to the nearest 1,000) |
B × 2.4 |
| 651,000 to 1,618,999 |
A − 650,000 | 1,800,000 to 3,599,999 |
B × 2.8 − 180,000 | |
| 1,619,000 to 1,619,999 |
969,000 yen | 3,600,000 to 6,599,999 |
B × 3.2 − 540,000 | |
| 1,620,000 to 1,621,999 |
970,000 yen | 6,600,000 to 9,999,999 |
A × 0.9 − 1,200,000 | |
| 1,622,000 to 1,623,999 |
972,000 yen | 10,000,000 or more |
A − 2,200,000 | |
| 1,624,000 to 1,627,999 |
974,000 yen | |||
Calculation of the amount of employment income (for the year 2016)
| Total earnings (A) |
Amount of employment income |
Total earnings (A) |
Amount of employment income | |
| Up to 650,999 |
0 yen | 1,628,000 to 1,799,999 |
A / 4 = B (round down to the nearest 1,000) |
B × 2.4 |
| 651,000 to 1,618,999 |
A − 650,000 | 1,800,000 to 3,599,999 |
B × 2.8 − 180,000 | |
| 1,619,000 to 1,619,999 |
969,000 yen | 3,600,000 to 6,599,999 |
B × 3.2 − 540,000 | |
| 1,620,000 to 1,621,999 |
970,000 yen | 6,600,000 to 9,999,999 |
A × 0.9 − 1,200,000 | |
| 1,622,000 to 1,623,999 |
972,000 yen | 10,000,000 to 11,999,999 |
A × 0.95 − 1,700,000 | |
| 1,624,000 to 1,627,999 |
974,000 yen | 12,000,000 or more |
A − 2,300,000 | |
Calculation of the amount of employment income (for the years 2013 through 2015)
| Total earnings (A) |
Amount of employment income |
Total earnings (A) |
Amount of employment income | |
| Up to 650,999 |
0 yen | 1,628,000 to 1,799,999 |
A / 4 = B (round down to the nearest 1,000) |
B × 2.4 |
| 651,000 to 1,618,999 |
A − 650,000 | 1,800,000 to 3,599,999 |
B × 2.8 − 180,000 | |
| 1,619,000 to 1,619,999 |
969,000 yen | 3,600,000 to 6,599,999 |
B × 3.2 − 540,000 | |
| 1,620,000 to 1,621,999 |
970,000 yen | 6,600,000 to 9,999,999 |
A × 0.9 − 1,200,000 | |
| 1,622,000 to 1,623,999 |
972,000 yen | 10,000,000 to 14,999,999 |
A × 0.95 − 1,700,000 | |
| 1,624,000 to 1,627,999 |
974,000 yen | 15,000,000 or more |
A − 2,450,000 | |
出典：国税庁ホームページ（http://www.nta.go.jp/english/taxes/individual/12012.htm）
