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LDP Pitches Concept to Raise Japan’s Tax Threshold, Price-Linked Basic Deduction Reported

Opposition to trimming the high‑school dependent deduction is firming across parties.

Overview

  • Tax chief Itsunori Onodera met Kokumin’s Motohisa Furukawa and presented an approach to revising the so‑called income wall, withholding specific figures.
  • Reporting indicates the LDP is considering lifting the threshold by indexing the universal basic deduction to prices, though details have not been disclosed.
  • Kokumin continues to press for a ¥1.78 million threshold without income limits after this year’s move from ¥1.03 million to ¥1.60 million, and the LDP previously agreed to aim for ¥1.78 million with partners.
  • Onodera also consulted Komeito and Japan Innovation Party leaders, as Ishin’s Satoshi Umemura conveyed opposition to reducing the deduction for parents of high‑school‑age children.
  • Prime Minister Sanae Takaichi signaled willingness in the Diet to work with Kokumin on raising the threshold, while final decisions for the 2026 tax outline remain unsettled.