A special rule for the life insurance premium deduction is introduced for those with dependents under age 23Families with a child under 23 get a bigger discount for life insurance
Starting with the year-end adjustment for 2026 (Reiwa 8), a special rule is introduced for the general life insurance premium deduction for taxpayers with dependents under age 23. For new life insurance premiums in 2026 and 2027 (Reiwa 8 and 9), the deduction is calculated using a set table, and the cap on the general life insurance premium deduction becomes JPY 60,000 (JPY 40,000 before the revision).
- Annual new life insurance premiums
- JPY 100,000
- x 1/4
- JPY 25,000
- +
- JPY 30,000
- General life insurance premium deduction
- JPY 55,000
Key points
- It applies to the general life insurance premium deduction on new life insurance premiums for taxpayers with dependents under age 23 (2026 and 2027).
- Deduction amount: for annual new life insurance premiums of JPY 30,000 or less, the full amount; over JPY 30,000 up to JPY 60,000, premium x 1/2 + JPY 15,000; over JPY 60,000 up to JPY 120,000, premium x 1/4 + JPY 30,000; over JPY 120,000, a flat JPY 60,000.
- When old life insurance premiums, or new life insurance premiums to which the special rule applies, are paid, the cap on the general life insurance premium deduction is JPY 60,000 (JPY 40,000 before the revision).
- The combined cap for the general life insurance, nursing care medical insurance and individual annuity insurance premium deductions stays at JPY 120,000, as before the revision.
What to do in practice
- Check that insurance premium deduction declarations correctly state that the person has a dependent under age 23.
- Use the NTA's 2026 (Reiwa 8) forms and filling-in examples to calculate the deduction.
If you pay for life insurance, that amount can be subtracted when taxes are calculated. For people who support a family member under age 23, the upper limit of what can be subtracted rises from JPY 40,000 to JPY 60,000, but only for 2026 and 2027.
- 1. CheckDo you support a family member under age 23?
- 2. FormGet the insurance premium form from your company
- 3. DeclareWrite in the premiums you paid and hand it in to your company
- 4. Year-end adjustmentYour company calculates it with a limit of JPY 60,000
Points
- It is for people who support a family member under age 23.
- The upper limit of what can be subtracted goes from JPY 40,000 to JPY 60,000.
- The overall limit, including other insurance, stays at JPY 120,000 as before.
What the words mean
- Life insurance premium deduction (生命保険料控除)
- A system that lets you subtract the amount paid for life insurance when taxes are calculated
- Dependent (扶養親族)
- A family member you help support who meets certain conditions
- National Tax Agency (NTA): NTA: How to do year-end adjustment for 2026 (Reiwa 8) (I. What has changed since last year)
- National Tax Agency (NTA): NTA: Page for understanding year-end adjustment (2026, Reiwa 8)
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.