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Oct 18, 2026 National Tax Agency (NTA) Inheritance, gifts & real estate

The inheritance tax basic deduction is "JPY 30 million + JPY 6 million x the number of statutory heirs"Inheritance tax has a "tax-free up to here" line

For inheritance tax, the basic deduction is subtracted from the total taxable value to get the total taxable estate. That amount is divided according to the statutory shares, the rates in the quick-calculation table are applied to each share, and the results are added up to get the total tax. The key point is that tax rates are not applied directly to the amounts people actually receive. The NTA's explanation is based on laws and regulations as of April 1, 2026 (Reiwa 8).

Example of calculating the basic deduction (with 3 statutory heirs)
Fixed part
JPY 30 million
+ JPY 6 million x 3 people
JPY 18 million
Basic deduction
JPY 48 million

Key points

  • The basic deduction is "JPY 30 million + JPY 6 million x the number of statutory heirs". What remains after subtracting it from the total taxable value is the total taxable estate
  • In counting statutory heirs, a person who has renounced the inheritance is counted as if there had been no renunciation
  • Adopted children count toward the number of statutory heirs up to 1 if there are biological children, and up to 2 if there are none
  • Rates are progressive in 8 brackets, from 10% (JPY 10 million or less) to 55% (over JPY 600 million), and are calculated with the quick-calculation table for each amount corresponding to a statutory share
  • If the date of death is on or before December 31, 2026 (Reiwa 8), gifts received within 3 years before the inheritance began are added back (details of the add-back are on a separate page)
Who is affected: People for whom an inheritance has occurred or is expected, such as individuals and owners of closely held companies

What to do in practice

  • Check the number of statutory heirs (including how renunciation and adoption are treated) and estimate the basic deduction
  • Divide the total taxable estate by the statutory shares and apply the quick-calculation table to roughly estimate the total inheritance tax
Note: Each person's actual tax payable is determined by dividing the total inheritance tax according to the actual shares received and then reflecting the various additions and deductions. Please check the original source for details.

When you receive the property of someone who has died, there is first a line that says "no tax up to here". The more family members who can receive property, the higher that line gets. Only the part above the line is taxed, and the bigger the amount, the higher the tax rate.

Tax rates (the bigger the amount, the higher the rate)
JPY 10 million or less10%
Over JPY 30 million up to JPY 50 million20%
Over JPY 50 million up to JPY 100 million30%
Over JPY 100 million up to JPY 200 million40%
Over JPY 300 million up to JPY 600 million50%
Over JPY 600 million55%

Points

  • The tax-free line is "JPY 30 million + JPY 6 million x the number of family members (people with the right to receive property)"
  • Tax rates run from 10% to 55%. The bigger the amount, the higher the rate
  • The total tax is worked out as if the property had been split using the shares set by law, not by how much each person actually received
For example: If 3 people have the right to receive property, no inheritance tax is charged up to JPY 30 million + JPY 6 million x 3 = JPY 48 million.

What the words mean

Basic deduction
An amount subtracted first, meaning "no tax is charged up to here"
Statutory heirs
Family members the law says have the right to receive the property
Sources (official)
Checked against the source on: Oct 18, 2026

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.

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