Please find this month’s topics below. We hope they will be useful to you.
▼Taxation
Deduction for Life Insurance Premium Applicable to 2026 (Reiwa 8)
As part of measures to support households with children, the maximum deduction for life insurance premiums paid for new life insurance contracts will be increased to 60,000 yen for taxpayers who have a dependent under 23 years old for 2026.
【Amounts for the life insurance premium deduction after the amendment】
| Except as noted below (same as current) | |
|---|---|
| Amount of insurance premium paid(A) | Amount of deduction |
| Up to 20,000yen | Amount of (A) |
| 20,001yen to 40,000yen | (A)×1/2＋10,000yen |
| 40,001yen to 80,000yen | (A)×1/4＋20,000yen |
| 80,001yen upwards | 40,000yen maximum |
| Taxpayers who have a dependent under 23 years old | |
|---|---|
| Amount of insurance premium paid(A) | Amount of deduction |
| Up to 30,000yen | Amount of (A) |
| 30,001yen to 60,000yen | (A)×1/2＋15,000yen |
| 60,001yen to 120,000yen | (A)×1/4＋30,000yen |
| 120,001yen upwards | 60,000yen maximum |
The total maximum amount applicable to the Deduction for life insurance premium, individual annuity insurance premium and long-term medical care insurance premium is 120,000 yen (unchanged from the current rules).
▼Labor Management
Revision of the Non-Taxable Limit for Commuting Allowances
A Cabinet Order partially revising the Enforcement Order of the Income Tax Act was promulgated on November 19, 2025, raising the non-taxable limit for commuting allowances paid to salaried employees who use automobiles or other means of transportation for commuting.
This amendment took effect on November 20, 2025, and applies to commuting allowances payable on or after April 1, 2025.
Therefore, if commuting allowances exceeding the pre-amendment non-taxable limit were paid prior to the amendment, adjustments may be necessary during the year-end tax adjustment for the 2025 tax year.
Source: National Tax Agency JAPAN