What is the anti-inflation benefit (the so-called "¥50,000 benefit")?
Amid continuing price hikes, the national government and local governments have been continuously providing an "anti-inflation benefit" targeting low-income households and child-rearing households. "¥50,000" is a representative benefit amount paid in the past (such as the 2022 emergency support benefit for the surge in prices of electricity, gas, food, and other items); the amount paid differs by fiscal year and by local government. This article organizes the common mechanism: who is eligible, how to apply, and how it is treated for tax purposes.
Most recently, for households exempt from residence tax, benefits of roughly ¥10,000–¥30,000 per household plus ¥20,000 per child (child-rearing support benefit) have been provided by each local government using the national government's "Special Grant for Priority Support and Regional Revitalization." Because the amount, eligibility, and timing differ greatly from one local government to another, always check the official information of your city, ward, town, or village[Cabinet Office].
Overview of the benefit
Who can receive it (eligible recipients)
Residence-tax-exempt households
Households in which every member is exempt from residence tax. Low-income, elderly, and households with a person with disabilities often qualify. Eligibility is judged by the residence tax status of the base fiscal year (the previous year).
Households taxed only on the per-capita portion of residence tax
Households where the income-based portion of residence tax is not levied and only the per-capita portion is levied. This targets a layer with income slightly higher than exempt households[Ministry of Internal Affairs and Communications].
Households with a sudden change in finances
Households that were taxable in the base fiscal year but, due to a subsequent sharp drop in income (unemployment, business closure, injury or illness, etc.), are expected to have reached the benefit-eligible level. They are individually screened upon application.
Residence-tax-paying households
If there is anyone in the household on whom the income-based portion of residence tax is levied, the household is in principle not eligible. Whether one is taxable or exempt is judged by the place of residence registration as of the base date (in many cases January 1).
Whether residence tax is levied or exempt is judged on a household basis. If the head of household is taxed, there are cases where members of the same household are not eligible even if they themselves are exempt. On the other hand, if a student living apart has a separate household, they are judged individually.
The application flow
A notice arrives from your city, ward, town, or village
Households automatically judged eligible, such as residence-tax-exempt households, are mailed a "confirmation form" or a "benefit notice" from their local government. Even if nothing arrives, households with a sudden change in finances can apply separately.
Submit the confirmation form or application form
"Confirmation form" method: if the enclosed transfer account information has no errors, just sign, seal, and return it.
"Application form" method: enter and submit a new transfer account. A copy of identity verification documents may be required.
The benefit is transferred to your account
After your application is accepted, it is usually transferred to the registered account in about 2 to 4 weeks. The transfer sender name may be the local government's name or an abbreviation such as "BUKKA TAISAKU."
Complete the procedure within the deadline
If you miss the application deadline, you lose your eligibility. Be sure to check the deadline stated in the notice (in many cases within 2 to 3 months from when the notice is sent).
Tax treatment
Non-taxable for both income tax and residence tax
The anti-inflation benefit is legally treated as "non-taxable." Because it is not included in taxable income, receiving it does not increase your taxes.
No tax return or year-end adjustment required
You do not need to declare receipt of the benefit on a tax return or in the year-end adjustment. Neither salary earners nor sole proprietors need to do anything.
No effect on social insurance premiums
The benefit is not included in the basis for calculating social insurance premiums (health insurance and pension). Receiving it does not change your premiums.
Also not counted in the income tests for various benefits
The income from the benefit is not counted as "income" for nursery fees, high school tuition, the residence-tax-exemption test, and the like.
You do not need to record the benefit you received in your books. It is neither revenue nor miscellaneous income, and does not need to be entered in any field of the tax return.
Points to note
A local government or a government agency will absolutely never guide you to operate an ATM "for the benefit procedure," or ask for your bank account PIN or My Number by SMS or phone. Report suspicious contact to your city, ward, town, or village, or to the police.
If you put it off thinking "I can just apply later," it will expire. As soon as the notice arrives, check its contents right away and complete the procedure within the deadline. If you lose it, contacting your local government's benefit desk may allow it to be reissued.
Common misunderstandings
"Everyone in the household gets it" → often wrong. Benefits for exempt households are in principle "per household" (the child add-on is per number of children). It is not that a uniform amount is paid per household member.
"You lose dependent status" → wrong. Because the benefit is not included in income, it does not affect the judgment of a family's dependent deduction or spousal deduction. Receiving the benefit does not cause you to lose dependent status.
"Residence tax goes up" → wrong. Because a non-taxable benefit is not subject to the next fiscal year's residence tax or income tax, receiving it does not increase your tax burden the following year.
Summary
Once the notice arrives, first check whether your household is eligible, and simply return the application form within the deadline to receive the benefit. The procedure is not difficult, but be sure to keep the deadline. Because the amount and eligibility change by fiscal year and local government, check the latest details with your city, ward, town, or village's official information.
FAQ
How much is the benefit available now?
It differs by fiscal year and local government. Most recently, for residence-tax-exempt households, the center is roughly ¥10,000–¥30,000 per household plus ¥20,000 per child (child-rearing support benefit) and the like. "¥50,000" is a representative benefit amount from the past; always check the latest local government information.
Is the benefit taxed? Do I need to file a tax return?
The anti-inflation benefit is non-taxable, incurs no income tax or residence tax, and no tax return is required. It is also not counted toward social insurance premiums or the various income tests.
Who is eligible?
The center is mostly residence-tax-exempt households, and households taxed only on the per-capita portion or with a sudden change in finances may also be eligible. Add-ons for child-rearing households may have no income limit in some cases. Eligibility differs by program.
Do I not get it if I don't apply?
Households with clear eligibility are often paid on a push basis (just returning the confirmation form), but a sudden change in finances and the like requires an application. In all cases, completing the procedure within the deadline stated in the notice is essential.
Reference links (sources)
The amount, eligibility, and timing of the benefit differ greatly by fiscal year and local government. Always check the latest information from your city, ward, town, or village and from the national government.
- Cabinet Office — Overcoming price hikes and economic recovery (Special Grant for Priority Support and Regional Revitalization) (in Japanese)
- Children and Families Agency (benefits for child-rearing households) (in Japanese)
- Ministry of Internal Affairs and Communications — Individual residence tax (the exemption test) (in Japanese)
* The content of this article is for informational purposes; individual benefit requirements differ by local government. For details, check with your city, ward, town, or village.