Two income walls are gone. The ¥1.3 million cliff remains

The salary levels at which a part-time worker starts paying tax or social insurance, or stops counting as a dependant, in 2026.

Japan's income walls in 2026 The annual salary thresholds that still matter for part-time workers in Japan in 2026: the 1.3 million yen health insurance dependant limit, 1.5 million yen for those aged 19 to 22, and the 1.78 million yen income tax threshold, with the retired 1.03 and 1.06 million yen walls. ¥0 ¥0.5M ¥1.0M ¥1.5M ¥2.0M ANNUAL SALARY ¥1.78M Income tax starts basic + employment deductions, 2026 income ¥1.5M Dependant limit, aged 19–22 same health insurance test, higher bar ¥1.3M Lose dependant status pay own health insurance and pension ¥1.03M · RETIRED Old income tax wall raised to ¥1.6M in 2025, then ¥1.78M in 2026 ¥1.06M · RETIRED Social insurance wage test abolished 1 Oct 2026; now 20 hours a week decides LEGEND Wall in force Retired wall The cliff Tax walls are gradual. Losing dependant status is a cliff.

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Source: Fiscal 2025 and 2026 tax reform legislation; Japan Pension Service notice on the abolition of the wage requirement from 1 October 2026; MHLW notice on dependant recognition from April 2026. Chart: The Hardest Market (hardestmarket.com).

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