Are wage earners allowed to subtract necessary expenses incurred for their work from the amount of employment income?

Employment income is calculated by subtracting the amount of deduction for employment income from the gross amount of salaries and wages.

The amount of deduction for employment income is fixed by statutory formula that varies according to the gross amount of your salaries and wages. Therefore, actual expenses are exempt from calculating employment income in principle.

In general, you directly calculate the amount of employment income according to the calculation columns for corresponding year as following.

For example, if the gross amount of salaries and wages that you earned during the year 2022 is 5,000,000 yen, the amount of employment income is calculated as follows:

  1. (1) 5,000,000 yen / 4 = 1,250,000 yen
  2. (2) 1,250,000 yen × 3.2 – 440,000 yen = 3,560,000 yen
  3. (3) Consequently, the amount of employment income is 3,560,000 yen as above. The balance between 5,000,000 yen and 3,560,000 yen means the amount of deduction for employment income.
Calculation of the amount of employment income (for the year 2020 and after)
Total
earnings (A)
Amount of
employment income
Total
earnings (A)
Amount of employment income
Up to
550,999
0 yen 1,628,000 to
1,799,999
A / 4 = B
(round down fractions less than 1,000)
B × 2.4+100,000
551,000 to
1,618,999
A − 550,000 1,800,000 to
3,599,999
B × 2.8 − 80,000
1,619,000 to
1,619,999
1,069,000 yen 3,600,000 to
6,599,999
B × 3.2 − 440,000
1,620,000 to
1,621,999
1,070,000 yen 6,600,000 to
8,499,999
A × 0.9 − 1,100,000
1,622,000 to
1,623,999
1,072,000 yen 8,500,000
or more
A −1,950,000
1,624,000 to
1,627,999
1,074,000 yen
(note1) When your salaries and wages exceeds 8,500,000 yen, and if any of you, your spouse living in the same household or dependent is a person with special disabilities, or if you have a dependent under the age of 23, there is an exemption from employment income as follows:
10% of the balance between the gross amount of salaries and wages (up to 10,000,000 yen) and 8,500,000 yen
(note2) When you have employment income and miscellaneous income pertaining to public pensions, etc., and if the total amount of employment income (up to 100,000 yen) and miscellaneous income pertaining to public pensions, etc. (up to 100,000 yen) exceeds 100,000 yen, the excess amount is additionally exempt from employment income.
Calculation of the amount of employment income (for the year 2017 through 2019)
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