← Guides / Japan

Japan Inheritance & Gift Tax Guide (相続税・贈与税)

Japan's inheritance tax (相続税) uses progressive rates from 10% to 55% across six brackets, with a basic deduction of JPY 30M + JPY 6M per statutory heir. Gift tax (贈与税) mirrors the same rate structure, with an annual gift tax exclusion of JPY 1.1M per recipient. Asset valuation employs specific statutory rules that often result in values below market price.

Japan's 相続税 (Inheritance Tax) and 贈与税 (Gift Tax) are administered by the NTA. For related guidance, see our Wealth Tax Guide →, Personal Tax Guide →, and Property Tax Guide →.

Inheritance Tax Rates (Six Brackets)

Taxable inheritance is calculated as: (Total assets minus debts and funeral expenses) minus the basic deduction. The tax is computed on each heir's share but paid from the estate.

  • 10% — up to JPY 10M
  • 15% — JPY 10M to JPY 30M (deduction: JPY 0.5M)
  • 20% — JPY 30M to JPY 50M (deduction: JPY 2M)
  • 30% — JPY 50M to JPY 100M (deduction: JPY 7M)
  • 40% — JPY 100M to JPY 200M (deduction: JPY 17M)
  • 45% — JPY 200M to JPY 300M (deduction: JPY 27M)
  • 50% — JPY 300M to JPY 600M (deduction: JPY 42M)
  • 55% — over JPY 600M (deduction: JPY 72M)

Basic Deduction (基礎控除)

  • JPY 30,000,000 + (JPY 6,000,000 × number of statutory heirs).
  • For example, a spouse and two children (3 heirs) = JPY 30M + (JPY 6M × 3) = JPY 48M basic deduction.
  • If the net estate value is below this threshold, no inheritance tax return is required.

Spousal Relief

  • The spousal credit (配偶者の税額軽減) allows the surviving spouse to inherit the greater of JPY 160M or 50% of the statutory share tax-free.
  • This means most spousal inheritances are entirely exempt from inheritance tax.

Gift Tax (贈与税)

  • Gift tax is levied on the recipient. The same 10–55% progressive rate structure as inheritance tax applies.
  • Annual exemption: JPY 1,100,000 per recipient per donor. Gifts at or below this amount are tax-free and need not be declared.
  • Calendar-year filing: Gifts above the exemption must be reported by 15 February of the following year (special deadline).
  • Marriage/child-raising gift: One-time exemption of up to JPY 10M for gifts from parents/grandparents for marriage (age 20–50) or child-rearing purposes.
  • Education lump sum: Up to JPY 15M exempt per child if gifted through a qualified education savings trust.
  • Property gifts: Real estate, securities, and other assets are valued at their gift tax valuation (not market value).

Valuation Rules

  • Real estate: Valued using the roadside land price (路線価) method for inheritance/gift tax purposes, typically about 80% of market value. Buildings are valued at the fixed asset tax assessment.
  • Listed shares: Valued at the average of the monthly closing prices for the three months preceding the date of inheritance, or the closing price on the date of death, whichever is lower.
  • Unlisted shares: Valued using the net asset value method, comparable company method, or earnings method depending on the company.
  • Life insurance: Proceeds are included in the estate but benefit from a deduction of JPY 5M × number of statutory heirs.

Filing and Payment

  • Inheritance tax filing deadline: Within 10 months of the date of death.
  • Payment in full is due at filing. Extension to pay in instalments over up to 20 years (延納) is available for non-cash assets exceeding half the estate, with interest.
  • Gift tax must be filed by 15 February of the year following the gift (not 15 March like income tax).