Nenmatsu Chosei Year End Adjustment: 2026 Forms

The nenmatsu chosei year end adjustment is your employer’s reconciliation of income tax withheld from 2026 salary with the tax actually due for that year. Submit the 2026 declarations and evidence by your employer’s deadline, especially if you support a relative abroad. The revised 2026 basic deduction and minimum employment income deduction apply from 1 December 2026, so an older form guide can give you the wrong figures.

Nenmatsu chosei year end adjustment: what happens

年末調整 (nenmatsu chōsei, year-end tax adjustment) compares the income tax and reconstruction surtax (split into a 1.1% reconstruction and 1% defence levy from 2027) taken from your pay during the year with the annual calculation. Payroll settles the difference, often through the final salary payment. A credit is not a seasonal bonus: it may mean the company withheld more than your annual liability. An additional deduction can also arise if the withholding was too low. The National Tax Agency says most salary earners finish their annual income-tax payment through this process.

As of October 2026, the employer normally performs the adjustment for an employee who filed a 給与所得者の扶養控除等（異動）申告書 (dependent exemption declaration) with that main employer. The NTA excludes some employees, including those whose salary exceeds ¥20 million. If you have another employer or taxable income outside payroll, a separate kakutei shinkoku final return may still be needed. The year-end process is not a full review of every income source.

Which 2026 forms to give payroll

Your company may present these as online questions rather than separate paper sheets. Match the field to the underlying NTA declaration before entering a figure. Payroll chooses its internal submission date; do not mistake that date for a universal NTA filing deadline. Request the 2026 version and ask where supporting certificates should be uploaded.

The 2026 NTA form page also lists the combined spouse, specified-relative special deduction and income-adjustment declarations. Only complete a section if it applies to you. If you changed jobs during 2026, give payroll the previous employer’s 源泉徴収票 (gensen chōshūhyō, withholding certificate) so it can account for that salary where the normal rules allow. If you received income the employer cannot adjust, use a final return rather than squeezing it into an unrelated company field.

2026 deductions: the old ¥1.03 million shortcut is obsolete

For 2025, the NTA’s example gives a minimum employment income deduction of ¥650,000 and a maximum basic deduction of ¥950,000 for the lowest income band. From 1 December 2026, the 2026 income-tax rules raise those figures to ¥740,000 and ¥1,040,000 respectively for that band. A person with only employment income of ¥1.78 million or less can therefore have no income tax under the stated simple example. The older ¥1.03 million figure is not the 2026 income-tax threshold.

That ¥1.78 million example does not settle health insurance, pension or residence-tax eligibility. It is not every employee’s personal deduction. The 2026 basic deduction depends on total income after the employment income deduction: the NTA’s employee guide shows ¥1.04 million through ¥4.89 million of total income, ¥670,000 above ¥4.89 million through ¥6.55 million, and ¥620,000 above ¥6.55 million through ¥23.5 million, with further reductions at higher amounts. Use the employer’s 2026 worksheet, not a 2025 screenshot.

The reform generally takes effect on 1 December 2026 and applies to 2026 income tax. The NTA says withholding work through November 2026 is unchanged, while the December adjustment reflects the revised annual rules. A different calculation on the final payslip can therefore be legitimate. Check the residence tax guide separately: the following year’s municipal notice is a different tax calculation.

Overseas dependants: age, proof and the ¥380,000 route

Claiming a parent or other relative outside Japan is where a routine form can become consequential. The rules that began in 2023 still apply in 2026. For the dependant deduction, an overseas relative aged 16–29 or 70 or older needs relationship documents and remittance documents. For someone aged 30–69, the claim generally requires an additional route: they left Japan to study overseas, have a qualifying disability, or received at least ¥380,000 from you during 2026 for living or education. If none applies, the NTA says the overseas dependant deduction does not apply.

The ¥380,000 is money sent to that individual during the tax year, not a deduction amount and not a threshold that automatically qualifies the person. Different rules may apply to a spouse or disability claim, so do not use this age table as a substitute for the relevant form. Age is assessed at 31 December 2026 in the normal annual process; payroll may use a different reference point for a death or departure-year case.

The NTA accepts specified government relationship documents and financial-institution or qualifying transfer-provider records for remittances. Foreign-language documents need Japanese translations. Keep records for each relative; one transfer to a sibling does not prove support paid to a parent. A bank screenshot with no recipient identity or year may be insufficient. Give payroll the records it requests rather than ticking a box and expecting it to reconstruct the transfers later.

Why the declaration can matter again in 2027

After adjusting 2026 income tax, the employer provides a withholding certificate and reports salary details to the municipality. Your 2027 residence-tax assessment uses 2026 income and applicable deductions; an unsupported dependant claim may later need correction. Compare the certificate with your own records and then check the municipal notice when it arrives. A low deduction or missing income is not merely an odd-looking December payslip.

Immigration decisions also depend on accurate income and tax records. The permanent residency guide explains why consistent, paid tax matters. This does not mean a single incorrect field automatically determines a visa renewal or PR result; the practical risk is that the filed records and later certificates no longer tell the same story. Fix an error through payroll while its window is open, or use the proper amended or final-return route afterwards.

When to file a return instead

Use 確定申告 (kakutei shinkoku, final income-tax return) when you are required to report income outside the company adjustment or need a claim it cannot handle, such as a first-year home-loan credit. A completed company adjustment does not erase a separate filing obligation. If you leave Japan during 2026 or have two employers, review the exact departure and salary facts before deciding which route applies; the NTA’s ordinary December employee workflow may not fit.

Keep the 2026 declarations, translation and remittance records, deduction certificates, and withholding certificate together. Ask payroll which item it can still correct and retain its response. For a disputed overseas dependant, mixed income or an amended claim, consult a 税理士 (zeirishi, tax accountant).