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.
Key points
- The exemption limit is JPY 7,500 per month (previously JPY 3,500). It applies to meals provided on or after April 1, 2026.
- The first requirement for exemption is that the amount actually collected from the officer or employee is at least 50% of the value of the meal.
- The second requirement is that the value of the meal minus the amount actually collected is JPY 7,500 or less per month.
- Money paid in place of providing a late-night meal for late-night work is now limited to JPY 650 or less per payment (previously JPY 300 or less). This is also part of the circular revision dated March 31, 2026.
What to do in practice
- Check your current meal benefit: the employee's share (is it at least 50% of the value of the meal?) and the company's monthly share (is it JPY 7,500 or less?).
- In payroll calculations from April 1, 2026 onward, check that the taxable/non-taxable decision for meal benefits uses the new limit.
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.
- ○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
Points
- The tax-free limit for meals the company provides is now JPY 7,500 per month.
- But the employee must also pay at least half of the meal cost themselves.
- The money given for a late-night meal to people who work late at night is now up to JPY 650 each time, instead of JPY 300.
What the words mean
- Benefit in kind
- Giving things or services, such as meals, instead of money
- Tax-exempt
- No tax is charged
- National Tax Agency: National Tax Agency: Raising the income tax exemption limit for meals provided in kind
This article summarizes and explains materials published by government agencies and is not advice on any individual case. Rules can change, so for actual procedures and decisions always check the latest original materials and consult professionals such as tax accountants or labor and social security attorneys. English, Simplified Chinese and Traditional Chinese versions are translations prepared from the Japanese articles for convenience. If anything differs, the Japanese text and the original source take precedence.