home> Pension Benefits > Taxable Pension Benefits and Lump-Sums

Taxation Pension Benefits

Taxable Pension Benefits and Lump-Sums

  1. Pension benefits that are subject to the withholding income tax and are taxed integrally as "Miscellaneous Income."
    • Retirement Mutual Aid Pension benefits that have been determined
    • Transitional Addition for Occupational Pension (Retirement Mutual Aid Pension)
    • Old-age Employees' Pension
    • Retirement Pension [Fixed-term Retirement Pension/Life Retirement Pension] (Retirement Pension Benefits (Private schools version))
  2. Lump-sums that are subject to the withholding income tax and local tax as the "Retirement Lump-Sum" of "Retirement Income."
    • Lump-sums received as an alternative for the Fixed-term Retirement Pension [Lump-sum Payment] (Retirement Pension Benefits (Private schools version))
  3. Withholding income taxation for non-residents
    • Lump-sum Withdrawal Payment (for non-Japanese residents)
    • When a person who receives the pension of Item 1 and the Lump-sum of Item 2 above is not a resident of Japan (When a tax treaty applies, the withholding taxation is not executed assuming that the taxation is already implemented in the current residing country.)

Withholding taxation on pension benefits of residents in Japan

Pension benefit amounts that are subject to the withholding taxation

Younger than age 65   1,080,000 yen or more
Age 65 or older Persons eligible for Old-age Basic Pension 800,000 yen or more
Persons not eligible for Old-age Basic Pension 1,580,000 yen or more

Inheritance tax

On Disability Pension Benefits (disabled while on duty) /Survivors' Lump-sum and Transitional additions for occupational pension (Survivors' Mutual Aid Pension), no income tax is levied. However, they are subject to inheritance tax. Survivors' Mutual Aid Pension (determined before October 2015) /Survivors' Employees' Pension continue to be non-taxable.