Japan’s estimated tax (yotei nozei) asks you to prepay this year’s income tax based on last year’s return. If your base amount is ¥150,000 or more, you pay one-third in July and another third in November. If this year is shaping up much weaker, you can apply to have it reduced. Enter your base amount below to see both installments.
Japan Estimated Tax (Yotei Nozei) Calculator
Enter your base amount to see whether you owe it, each installment, and whether a reduction may apply
* This calculator is a simple estimate that splits your base amount into thirds for each installment; it may differ from your official notice.
Always confirm your exact base amount and due dates on the notice mailed by the tax office. The 70% line shown here is the tax office’s approval guideline, not the bar for filing –
you may file whenever your expected tax falls below the base amount. Confirm your case with your local tax office or a licensed tax accountant (zeirishi).
How to Use This Calculator
- Enter the estimated tax base amount shown on your tax office notice (or calculated from last year’s finalized return).
- If you know this year’s expected income tax, enter it too to check your reduction eligibility (leave it blank if you’re not sure).
- Click Calculate to see whether you owe estimated tax, each installment amount, and the days remaining for each deadline.
How the Calculation Works
If your base amount is 150,000 yen or more, you owe estimated tax, split into two installments of one-third each – due July 1-31 and November 1-30.
You may file a reduction request whenever your expected tax for this year is likely to fall below the base amount: July 1-15 if requesting for both installments,
or November 1-15 if requesting only for the 2nd installment. Note that the tax office is not obliged to approve unless your estimate comes to 70% or less of the base amount, though it will approve where the cause is clear-cut (marriage, a birth, new insurance premiums, donations).
For the full explanation of Japan’s estimated tax system – who owes it, reduction requirements, penalties for missing payment, and how it compares to
the US quarterly system – see
Japan’s Estimated Tax Prepayment (Yotei Nozei) for Freelancers.
That envelope in June is not a penalty
If you filed a return in March and thought you were done, a letter from the tax office in June can be alarming. It is not an audit or a fine — it is a notice that part of this year's tax is due early.
Nothing extra is being charged. At next year's final return, whatever you prepaid is subtracted from the tax you actually owe. Overpay and you get a refund; underpay and you settle the difference then. Only the timing moves.
This is also why nothing arrives in your first year of freelancing — there is no prior-year result to base it on. It typically starts in year two, which catches people off guard.
What you pay and when
| Installment | Payment window | Amount |
|---|---|---|
| 1st | July 1 – July 31 | One-third of the base amount |
| 2nd | November 1 – November 30 | One-third of the base amount |
| Settlement | Next year's final return | The balance, up or down |
If this year is worse — the reduction request
The calculation uses last year's numbers, so a bad year is not reflected automatically. You have to ask.
- Who can file — you expect this year's tax to fall below the base amount. The 70% figure is the approval guideline in NTA Basic Circular 113-1, not the bar for filing
- Typical grounds — closing or suspending the business, a sharp downturn, disaster or theft, larger medical expenses, new deductions
- Deadline — July 1–15 to cover both installments, or November 1–15 for the second only
Miss the window and your only option is to pay now and reclaim it at the final return. The total is the same, but your cash is tied up for months. If you are leaving Japan or winding down this year, look at this before July 15.
If you simply do not pay
Late payment interest (entaizei) starts the day after the deadline — a lower rate for the first two months, a higher one after that, with the exact percentages set annually.
The important point: waiting does not reduce the tax. This is a prepayment of something you owe anyway, so delay only adds interest on top. If cash is genuinely tight, talk to your tax office about a deferral rather than ignoring it.
Primary sources
Sources
- NTA No.2040 — Estimated tax (Japanese) ¥150,000 threshold, one-third per installment, July 1-31 and Nov 1-30
- NTA A1-3 — Reduction request procedure (Japanese) Filing requirement (estimate expected to fall below the base amount) and deadlines
- NTA Basic Circular 113-1 — Approval standard (Japanese) The 70% line is the approval guideline, not the bar for filing
This article is for general information only and is not tax or legal advice. Rules and rates change, and outcomes depend on individual circumstances. Consult your local tax office or a licensed tax professional before filing.