Income tax estimated payments: one-third each in July and November if the base amount is JPY 150,000 or moreIndividuals sometimes "prepay" taxes based on the previous year
People whose estimated tax base amount is JPY 150,000 or more must make estimated tax payments, prepaying part of that year's income tax. Period 1 runs from July 1 to July 31 and Period 2 from November 1 to November 30, and each payment is in principle one-third of the base amount. The tax office sends a notice by June 15.
Key points
- Applies when the estimated tax base amount is JPY 150,000 or more. The base amount is in principle based on the previous year's finalized tax amount.
- The notice arrives by June 15 in writing or via e-Tax. Each payment is in principle one-third of the base amount (2 payments).
- Payment periods: Period 1 is July 1 to July 31, and Period 2 is November 1 to November 30. If the due date falls on a weekend or holiday, the deadline is the next business day.
- Special agricultural income earners make one payment of one-half in Period 2.
- The change to the basic deduction for 2026 (Reiwa 8) is not reflected in the estimated payment calculation and is settled in the tax return.
What to do in practice
- Secure the funds for the Period 2 payment (due November 30) and, if you pay by account transfer, check your account balance.
- If you expect this year's income to drop considerably from last year, look into the procedure for applying for a reduction.
A sole proprietor whose tax was large last year prepays part of this year's tax in two installments, in July and November. Each installment is one-third of an amount based on last year's tax. The rest is worked out properly in the spring tax return.
- Estimated prepayment (base amount)
- JPY 300,000
- Paid in July (one-third)
- JPY 100,000
- Paid in November (one-third)
- JPY 100,000
- Total prepaid for the year
- JPY 200,000
Points
- People whose estimated amount from last year's tax is JPY 150,000 or more have to prepay.
- You pay one-third of the estimated amount each time, twice, in July and November.
- The real amount is decided in the spring tax return, where any shortfall or overpayment is adjusted.
What the words mean
- Estimated tax payment
- Paying part of this year's tax ahead of time
- Base amount
- The amount that the prepayment amount is based on
- National Tax Agency (NTA): NTA: No. 2040 Estimated tax payments (yotei nozei)
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.