The amount of 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 determined by using statutory formula that varies according to the gross amount of salaries and wages. Therefore, the amount of actual expenses incurred in connection with employment is not deductible from the gross amount of salaries and wages when calculating the amount of employment income in principle.
In general, the amount of employment income is directly calculated by using either of the following tables, depending on the year concerned.
For example, if the gross amount of salaries and wages that you earn during the year 2024 is 5,000,000 yen, the amount of employment income will be calculated as follows:
| 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 the amount of salaries and wages exceeds 8,500,000 yen, and if any of you, your spouse or dependent living in the same household as you and whose total amount of income for the year concerned is 480,000 yen or less is a person with special disabilities, or if you have a dependent under the age of 23, there is an exemption from the amount of employment income as follows: 10% of the difference 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 deductible from the amount of employment income. |
| 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 fractions less than 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 | |||