Tax-exempt limit for meals provided in kind raised from JPY 3,500 to JPY 7,500 per monthThe tax-free amount for meals your company provides has gone up
On March 31, 2026 (Reiwa 8), the National Tax Agency revised its circular and raised the income tax exemption limit for meals provided in kind from JPY 3,500 to JPY 7,500 per month. It applies to meals provided on or after April 1, 2026. The amount of money paid in place of a late-night meal for late-night work was also raised, from JPY 300 or less to JPY 650 or less per payment.When a company gives its employees meals, it is usually treated like extra pay, so tax is charged. But if certain conditions are met, no tax is charged. From April 2026, the tax-free limit rose from JPY 3,500 to JPY 7,500 per month.
BeforeAfter
Meals provided in kind (per month)JPY 3,500 or lessJPY 7,500 or less
Cash in place of a late-night meal (per payment)JPY 300 or lessJPY 650 or less
- ○Applies: The employee pays at least half of the meal cost
- ○Applies: The company's share is JPY 7,500 or less per month
- ×Does not apply: The employee pays nothing and the company pays JPY 10,000 every month
- ○Applies: Late-night meal money counts if it is JPY 650 or less each time