Japan's defence income tax starts on 1 January 2027 at 1% of the underlying income-tax amount. At the same time, the reconstruction special income-tax rate falls from 2.1% to 1.1%. The two levies therefore still total 2.1% of base income tax. The new defence label is not a new 1% charge on gross salary, and this split alone does not increase the combined surcharge.
Does the 2027 defence tax add 1% to a Japanese payslip?
No. For income arising from 1 January 2027, the new defence special income tax is 1% of the base income-tax amount while the reconstruction levy becomes 1.1%. NTA says their total remains 2.1%, so the special-tax calculation itself is unchanged. An actual payslip can still differ because the 2027 withholding tables reflect other tax reforms.
| Component | Income through 31 Dec 2026 | Income from 1 Jan 2027 |
|---|---|---|
| Underlying income tax | Calculated under the applicable year's rules | Calculated under the applicable year's rules |
| 復興特別所得税 (fukkō tokubetsu shotokuzei, reconstruction special income tax) | 2.1% of base income tax | 1.1% of base income tax |
| 防衛特別所得税 (bōei tokubetsu shotokuzei, defence special income tax) | None | 1% of base income tax |
| Combined special-tax percentage | 2.1% | 2.1% |
This is a tax on the income-tax amount, not the monthly salary. It is also separate from residence tax and the health, pension and employment-insurance deductions explained in the social-insurance payslip guide.
What does the 1% and 1.1% split look like in yen?
On an illustrative ¥10,000 base income-tax amount, the 2026 reconstruction levy is ¥210. For 2027 income, it becomes ¥110 reconstruction plus ¥100 defence, still ¥210 combined. This isolates the surcharge change; it is not a forecast of your withholding because deductions, pay period and NTA's official table determine the underlying tax.
| Illustrative base income tax | Through 2026: reconstruction 2.1% | From 2027: reconstruction 1.1% + defence 1% | Combined difference from split |
|---|---|---|---|
| ¥10,000 | ¥210 | ¥110 + ¥100 = ¥210 | ¥0 |
| ¥30,000 | ¥630 | ¥330 + ¥300 = ¥630 | ¥0 |
| ¥50,000 | ¥1,050 | ¥550 + ¥500 = ¥1,050 | ¥0 |
Use the 2027 withholding table
NTA published a separate 2027 withholding table. It combines income tax and both special taxes, and it also incorporates other FY2026 reforms to the underlying calculation. Employers should not invent a separate gross-pay deduction labelled 1% to reproduce this example.
What changes for employers and year-end adjustment?
For salary paid as 2027 income, use NTA's 2027 monthly or daily withholding table. It already combines the underlying income tax, the defence levy and the reconstruction levy. For 2026 salary, continue using the applicable 2026 table. The year-end adjustment guide explains how the employer reconciles withholding with annual deductions; the surcharge split does not replace that process.
- Identify the income year and pay date. The new split applies to income arising on or after 1 January 2027.
- Use the official NTA withholding table for that income year. Do not apply an extra 1% to gross wages.
- Keep the payroll calculation and year-end withholding certificate; they show the actual taxable amount after the relevant deductions.
- When comparing December and January payslips, separate this unchanged 2.1% split from other changes in pay, dependants and tax-law deductions.
NTA's FY2026 reform also extends the reconstruction levy by ten years, to 31 December 2047 (previously 31 December 2037), so the rate falls but the levy continues longer. The published summary sets out that timetable; the operational question for a 2027 employee is to use the new withholding table. For the general take-home-pay context, use the salary calculator alongside the latest NTA table rather than treating its estimate as an official tax assessment.
Why a payslip can still change
NTA says the 2027 table reflects separate reforms such as basic-deduction changes. A lower or higher January withholding amount cannot be attributed to the defence levy merely because the new label appears on a tax summary. Compare the taxable base and the correct annual table first.
For a disputed payroll calculation or tax return, consult a 税理士 (zeirishi, licensed tax accountant) with the applicable withholding certificate.
Frequently asked questions
Will the new 1% defence income tax make my January 2027 payslip 1% smaller?
No, the defence levy does not add one percentage point to salary withholding by itself. From 1 January 2027, the existing 2.1% reconstruction levy on the base income-tax amount becomes 1.1%, while the new defence levy is 1%. Their combined surcharge remains 2.1%. Other 2027 tax-table changes may still alter the actual amount withheld.
Is the 1% defence tax calculated on gross salary?
No. NTA describes it as 1% of the underlying income-tax amount, not 1% of gross pay. On an illustrative ¥10,000 base income-tax amount, that is ¥100 of defence tax. The 1.1% reconstruction portion is ¥110, giving ¥210 of combined surtaxes before applying the official rounding and withholding table.
Which income year uses the new split?
Income arising on or after 1 January 2027 uses the new 1% defence and 1.1% reconstruction split. NTA says employers use the 2027 withholding tax table for 2027 salary payments. The 2026 table should still be used for 2026 payments, even if the employer prepares year-end adjustment paperwork close to the changeover.
Why can my total 2027 withholding still change if the surcharge stays 2.1%?
The combined special-tax percentage is unchanged, but the underlying income tax can change. NTA says the 2027 withholding tables also reflect separate basic-deduction and other FY2026 tax reforms. A change in salary, dependants or insurance deductions can change withholding too. Compare the full official table for the appropriate pay period rather than multiplying last year’s payslip by 1%.
Official Sources
This article references the following primary sources. Rules and figures change periodically — always verify current requirements directly before making decisions.