Student part-time work and being a dependent of your parents: the income thresholds after the 2025 reform, explained simply
Summer break is when students take on more part-time work. Many students and parents wonder, "How much can I earn?" With the 2025 (Reiwa 7) reform, the income thresholds have changed significantly, and for the university-student age group (19–22) in particular they have been reorganized around the "¥1.5 million threshold." The key point is that there are three kinds of threshold: (1) the student's own tax, (2) being a dependent of the parents (tax), and (3) social insurance. Since the amounts differ, it becomes easier to understand when you consider them separately.
・The student's own income tax: tax-free up to ¥1.6 million in salary (2025 and 2026).
・Being a dependent of the parents (tax): full amount up to ¥1.23 million in salary. Kept at the full amount up to ¥1.5 million under a newly created deduction, then phased down up to ¥1.88 million.
・Social insurance: at annual income of ¥1.3 million you leave the parents' health-insurance dependent status, but for ages 19–22 this rises to ¥1.5 million from October 2025.
There are "three kinds" of threshold
Even though we say "income threshold" as a single phrase, it splits into three depending on whose burden, and of what, changes. Because they are easy to confuse, let's sort them out first.
The student's own tax
As earnings rise, the student starts to owe income tax and residence tax. In 2025 and 2026, income tax is exempt up to ¥1.6 million in salary.
Being a dependent of the parents (tax)
When the child's income exceeds a certain level, the dependent deduction the parents had been using shrinks and the parents' tax rises. There is relief for ages 19–22.
Social insurance
When the child's annual income exceeds a certain level, they leave the parents' health-insurance dependent status and pay premiums themselves. This is a separate standard from tax.
[Threshold 1] The student's own tax: zero income tax up to ¥1.6 million
With the 2025 reform, the minimum employment income deduction was raised to ¥650,000 and the basic deduction was also raised[National Tax Agency, Reiwa 7 reform (in Japanese)]. For people with lower income the basic deduction becomes more generous, and in 2025 and 2026 income tax is exempt up to ¥1.6 million in salary income (employment income deduction ¥650,000 + basic deduction ¥950,000 = ¥1.6 million).
The student can also use the working-student deduction (¥270,000 for income tax, ¥260,000 for residence tax). Eligibility requires salary income of ¥1.5 million or less (total income of ¥850,000 or less), among other conditions[National Tax Agency No.1175 (in Japanese)]. However, since in 2025 and 2026 income tax is already exempt up to ¥1.6 million, the working-student deduction mainly takes effect on residence tax. Residence tax has a lower threshold than income tax, and depending on the municipality a small amount of residence tax can arise from around ¥1 million in salary income (check with your municipality for details).
[Threshold 2] Being a dependent of the parents (tax): university students keep the full amount up to ¥1.5 million
For a parent to claim the child as a dependent and receive the dependent deduction, the condition is that the child's total income is ¥580,000 or less (salary income of ¥1.23 million or less) (raised from ¥480,000 to ¥580,000 in the 2025 reform)[National Tax Agency No.1180 (in Japanese)]. Children aged 19 and over but under 23 are specified dependent relatives, and the deduction is a larger ¥630,000.
Furthermore, in 2025 a special deduction for specified relatives was newly created, so that even when a child aged 19–22 exceeds ¥1.23 million in salary, the parent's deduction does not suddenly disappear (the cliff is removed)[National Tax Agency, special deduction for specified relatives (in Japanese)].
| Salary income of the child (19–22) | Deduction the parent can receive |
|---|---|
| Up to ¥1.23 million | Dependent deduction (specified dependent) ¥630,000 |
| Over ¥1.23 million to ¥1.5 million | Special deduction for specified relatives ¥630,000 (full amount kept) |
| Over ¥1.5 million to ¥1.88 million | Special deduction for specified relatives (phased down. Minimum ¥30,000) |
| Over ¥1.88 million | None (¥0) |
* The special deduction for specified relatives takes effect in December of Reiwa 7 and applies from the year-end adjustment and tax return for the Reiwa 7 (2025) year. The child's age is judged as of December 31 of that year.
The "money threshold map" for university students (19–22)
When you line up the thresholds for the university-student age group along a single line, it looks like this. The real dividing point is ¥1.5 million.
* High school students (16–18) are not eligible for the special deduction for specified relatives, and when salary exceeds ¥1.23 million the parents' ordinary dependent deduction (¥380,000) is lost. Children under 16 have no dependent deduction (they are covered by the child allowance).
[Threshold 3] Social insurance: ¥1.3 million, and ¥1.5 million for university students
When the child's annual income exceeds a certain level, they leave the parents' health-insurance dependent status and pay premiums themselves (social insurance at the part-time workplace, or National Health Insurance and the National Pension). In principle the dividing line is annual income of ¥1.3 million[Ministry of Health, Labour and Welfare (in Japanese)].
- Students are outside the scope of the "¥1.06 million threshold" (the expansion of social-insurance coverage excludes students)
- For ages 19–22, from October 2025 the annual-income requirement for a health-insurance dependent is raised from ¥1.3 million to ¥1.5 million[Japan Pension Service (in Japanese)]
The tax dependent (deduction) and the social-insurance dependent are judged by different amounts and different standards. For university students, the 2025 reform aligned both tax and social insurance at "¥1.5 million", but once you exceed ¥1.5 million you newly incur your own social-insurance premiums (roughly ¥100,000-plus a year), and the rate at which your take-home pay grows slows down. For the social-insurance thresholds, also see The ¥1.06 million and ¥1.3 million thresholds.
Summary by age (being a dependent of the parents)
| Child's age (as of 12/31) | Parents' deduction |
|---|---|
| Under 16 | No dependent deduction (covered by the child allowance) |
| 16–18 | Ordinary dependent deduction ¥380,000 |
| 19–22 | Specified dependent ¥630,000 + special deduction for specified relatives (relief up to ¥1.5M/¥1.88M) |
| 23 and over | Ordinary dependent deduction ¥380,000 |
* In all cases, salary income of ¥1.23 million or less qualifies for the dependent deduction (for ages 19–22, relief is extended above this via the special deduction for specified relatives). The deduction amounts are those for income tax. Residence tax deduction amounts are set separately. For details of the dependent deduction, see the Complete guide to the dependent deduction.
Things to watch out for with summer-break part-time work
- Earning in short bursts makes annual income jump easily: working intensively in summer tends to push your annual total over a threshold. Manage it by your projected annual figure.
- Watch withholding when working multiple jobs: when you work at two or more places, the withholding category (Column A / Column B) changes and too much can be withheld. Settle up (get a refund) through the year-end adjustment or a tax return.
- If income tax was withheld, a tax return often gets it back: if your annual income is within the tax-free line, the income tax that was withheld is refunded via a tax return.
- Share information within the family: because it affects being a dependent of the parents, sharing the child's projected annual income before the year-end adjustment prevents trouble.
Summary
FAQ
Up to how much can a student's part-time work be free of income tax?
In 2025 and 2026, it is exempt up to ¥1.6 million in salary income (employment income deduction ¥650,000 + basic deduction ¥950,000). On the permanent baseline it is ¥1.23 million. Residence tax has a lower threshold than income tax, and depending on the municipality a small amount can arise from around ¥1 million in salary income.
Up to how much can a child be kept as a dependent of the parents?
Up to ¥1.23 million in salary income, it is the dependent deduction (specified dependent ¥630,000 for ages 19–22). For ages 19–22, thanks to the special deduction for specified relatives, the parents' deduction stays at the full ¥630,000 up to ¥1.5 million in salary, and a deduction remains, phased down, up to ¥1.88 million.
What is the special deduction for specified relatives?
It is a deduction newly created in 2025 whereby, even when a child aged 19 and over but under 23 exceeds ¥1.23 million in salary, the parent can receive the full ¥630,000 up to ¥1.5 million and a phased-down deduction up to ¥1.88 million. You claim it through the year-end adjustment or a tax return.
What happens to social insurance when a university student exceeds ¥1.3 million?
Students are outside the scope of the ¥1.06 million threshold. In principle, at annual income of ¥1.3 million you leave the parents' health-insurance dependent status, but for ages 19–22 the requirement was raised to ¥1.5 million from October 2025. Once you exceed ¥1.5 million you pay premiums yourself.
Should I use the working-student deduction?
With salary income of ¥1.5 million or less (total income of ¥850,000 or less), you can receive a deduction of ¥270,000 (¥260,000 for residence tax). However, since in 2025 and 2026 the student's own income tax is already exempt up to ¥1.6 million, it mainly takes effect on residence tax. It is a system separate from being a dependent of the parents.
Reference links (sources)
This article is based on the following official materials (neutral, primary sources). Because amounts and requirements are subject to reform, please check the latest information before filing. The details of residence tax and social insurance differ by municipality and by the insurer you belong to.
- National Tax Agency — On the review of the basic deduction for income tax under the Reiwa 7 tax reform, etc. (in Japanese)
- National Tax Agency — Special deduction for specified relatives (Reiwa 7 reform) (in Japanese)
- National Tax Agency — No.1180 Dependent deduction (in Japanese)
- National Tax Agency — No.1175 Working-student deduction (in Japanese)
- Japan Pension Service — Change to the annual income requirement for dependents aged 19 and over but under 23 (in Japanese)
- Ministry of Health, Labour and Welfare — Response to the "income threshold" (in Japanese)
* This article is general information, not tax or social-insurance advice. For individual determinations, please confirm with a tax office, your municipality, or the health insurer you belong to.