Reskilling subsidies: a guide to education and training benefits, employer subsidies, and taxes
To encourage "reskilling" (learning new skills), the national government and local authorities offer many subsidies and benefits that let you recover much of your course fees. For specialized programs, some schemes return up to 80% of the cost. This article organizes reskilling support into support for individuals and support for employers, and — from the distinctive angle of a tax site — covers "Are the benefits you receive taxable?" and "Does paying out of pocket to study lower your taxes? (the special deduction for specific expenditures)" too, drawing on the latest 2024–2025 rules from primary sources.
① Benefits that support individuals learning (education and training benefits, the education and training leave benefit, and the Ministry of Economy, Trade and Industry's support program)
② Subsidies that support employers training their staff (the human resource development subsidy)
Which schemes you can use depends on which of the two positions you are in.
Reskilling support is either "for individuals" or "for employers"
Learning while working, or between jobs
- Education and training benefits (general / specified general / professional practical)
- Education and training leave benefit (newly created in October 2025)
- Career advancement support program through reskilling (METI; aimed at changing jobs)
Reskilling training for staff
- Human resource development subsidy (Business Development / Reskilling Support Course)
- Subsidizes training expenses and wages during training
- Local-government schemes of their own (such as Tokyo)
[Individual ①] The education and training benefit system (up to 80%)
The most-used pillar for individuals is the education and training benefit system. If you are insured under employment insurance (currently employed) or are within a certain period after leaving a job, and you take and complete an eligible course, part of the fees you paid is returned to you by Hello Work. The benefit rates were expanded from October 2024[MHLW, October 2024 expansion (in Japanese)]. There are three tiers depending on the course level.
| Tier | Benefit rate | Annual cap | Examples of eligible courses |
|---|---|---|---|
| General education and training | 20% | ¥100,000 | Bookkeeping, English, various qualification courses, etc. |
| Specified general education and training | Up to 50% | ¥250,000 | Real estate transaction agent, large-vehicle licenses, tax accountant subjects, etc. (leading to prompt employment) |
| Professional practical education and training | Up to 80% | ¥640,000 per year | Nurses, childcare workers, IT skills, MBA, professional graduate schools, etc. |
+ 10% if wages rise by 5% or more after the course = up to 80%
* For specified general training it is "40% + 10% on qualification/employment = up to 50%." Receiving the benefit generally requires meeting conditions such as a minimum period of employment-insurance coverage. Some tiers require procedures at Hello Work (such as career consulting) before you take the course[MHLW, education and training benefit (in Japanese)].
[Individual ②] The education and training leave benefit (newly created in October 2025)
Newly created in October 2025 is the education and training leave benefit. When an employed person insured under employment insurance takes unpaid "education and training leave" to study new skills, they receive, as living expenses during that time, the same amount as the basic allowance (unemployment benefit) they would get if they had left their job[MHLW (in Japanese)].
The number of days paid is 90, 120, or 150 days, depending on your period of coverage. People who had given up because "the only way to study is to quit the company" can now more easily focus on training while staying employed. The intended combination is to cover the course fees themselves with the education and training benefit (above) and support living expenses with this leave benefit.
[Individual ③] Career advancement support program through reskilling (METI; up to ¥560,000)
This is a program of the Ministry of Economy, Trade and Industry (METI) aimed at employed people who want to change jobs. Through private support providers, you can receive career counseling, skills courses, and job-change support as an integrated package[METI (in Japanese)].
+ 20% for staying employed one year after changing jobs (cap ¥160,000) = up to ¥560,000
A condition is having an employment contract with a company at registration; contract, dispatched, part-time, and casual workers are also eligible. On the other hand, company managers, officers, and freelancers (contract-for-services) are not eligible. The additional ¥160,000 is limited to "cases where you change jobs through that support provider's job-change support"; changing jobs on your own or through a different agency does not qualify. Check the official site for detailed conditions such as whether it can be combined with the education and training benefit.
* For taxes and procedures that come with changing jobs (residence tax, tax returns, etc.), see also Taxes and procedures when changing or leaving a job.
[For employers] The human resource development subsidy (Reskilling Support Course)
When an employer (business owner) has staff take reskilling training, the "Business Development / Reskilling Support Course" of the human resource development subsidy can be used. For training needed to launch a new business, promote DX, and the like, part of the training expenses and part of the wages during the training period are subsidized[MHLW (in Japanese)].
- The subsidy rate is up to 75% (for SMEs meeting additional requirements)
- Wages during training are also subsidized (from FY2025, raised to ¥1,000 per hour for SMEs)
- Time-limited through the end of FY2026 (end of March 2027). From FY2026, requirements are revised so that confirmation by an accredited support organization becomes necessary, among other changes
* For an overview of subsidies for employers, see the Guide to subsidies and grants. Local governments (such as Tokyo's DX reskilling subsidy) also have their own support, so check the schemes in your location too.
[Taxes] The taxes on reskilling money
Here is the point that only a tax site would raise. We organize "Are the benefits you receive taxed?" and "Does paying out of pocket to study lower your taxes?"
① Employment-insurance benefits are "tax-exempt"
The education and training benefit and the education and training leave benefit are employment-insurance benefits and are tax-exempt (Article 12 of the Employment Insurance Act). No income tax or residence tax applies, and no tax return is needed. They are also not included in the "income" used to judge the spouse deduction or dependent deduction[MHLW (in Japanese)].
What is tax-exempt are employment-insurance benefits. Support money other than employment insurance, such as METI subsidies, may be taxable (as temporary income, etc.). Check the treatment when you receive it. Note also that subsidies received by a business are in principle taxable (gross profit / income).
② If an employee studies at their own expense: the "special deduction for specific expenditures"
An employee who obtained a qualification at their own expense without using benefits may pay less tax through the special deduction for specific expenditures of salaried workers. The part of specific expenditures such as qualification and training costs that exceeds "half of the salary income deduction" can be subtracted from salary income[NTA No.1415 (in Japanese)].
・A condition is that the qualification or training is directly necessary for your duties. Costs compensated by benefits are not eligible (only your own out-of-pocket share).
・Applying it requires certification from the salary payer (your employer). For qualification and training costs, from the 2023 tax year onward, certification by a career consultant is also accepted[MHLW (in Japanese)].
・You claim it via a tax return. The mechanism of the salary income deduction is also illustrated in Taxes on an annual income of ¥10 million.
③ Sole proprietors can treat it as an "expense"
For a sole proprietor or freelancer, course fees and training costs to learn skills needed for the business can be recorded as necessary expenses (on the premise of a connection to the business). For how expenses work, see Expenses for sole proprietors.
Which one should you use, by position?
| Your situation | Scheme to consider first |
|---|---|
| Want to learn a qualification/skill while working | Education and training benefits (general / specified general / professional practical) |
| Want to take leave to focus on learning (while employed) | Education and training leave benefit (from October 2025) |
| Want to learn and change jobs (employed) | METI Career advancement support program through reskilling |
| Want to train staff as a company | Human resource development subsidy (Reskilling Support Course) |
| Studied at your own expense without benefits (employee) | Special deduction for specific expenditures (tax return) |
Summary
FAQ
What are the main schemes an individual can receive for reskilling?
The core is the education and training benefit (general 20% / specified general up to 50% / professional practical up to 80%). Employed people can also use the education and training leave benefit newly created in October 2025, and — if aiming to change jobs — METI's support program (up to ¥560,000).
Is the education and training benefit taxed? Is a tax return needed?
Because it is an employment-insurance benefit, it is tax-exempt, and no income tax or residence tax applies. No tax return is needed either, and it is not included in the income used to judge the spouse deduction or dependent deduction.
What is the breakdown of the "up to 80%" for professional practical education and training?
50% during the course, plus 20% for completing it and gaining a qualification and employment, for 70%, and a further 10% if wages rise by 5% or more after the course, for up to 80%. The annual cap is ¥640,000, and up to 3–4 years are eligible.
If an employee obtains a qualification at their own expense, do their taxes go down?
The special deduction for specific expenditures may be usable. The part of qualification and training costs that exceeds half of the salary income deduction can be subtracted from income. Amounts compensated by benefits are not eligible, and certification from your employer or a career consultant is required.
If a company has staff take reskilling training, is a subsidy paid?
Under the "Business Development / Reskilling Support Course" of the human resource development subsidy, training expenses and wages during training are subsidized up to 75% (for SMEs meeting additional requirements). It is time-limited through the end of March 2027.
Reference links (sources)
This article is based on the following official materials (neutral, primary sources). Benefit rates, caps, and deadlines are subject to revision, so please check the latest before applying.
- MHLW — The education and training benefit system (in Japanese)
- MHLW — We are expanding the education and training benefit from October 2024 (in Japanese)
- MHLW — The education and training leave benefit (in Japanese)
- MHLW — The human resource development subsidy (in Japanese)
- METI — Career advancement support program through reskilling (in Japanese)
- NTA — No.1415 Special deduction for specific expenditures of salaried workers (in Japanese)
- MHLW — Career-consultant certification for the special deduction for specific expenditures (in Japanese)
* This article is general information, not tax or administrative-procedure advice. For whether you are eligible for a benefit or subsidy, the amounts, and the tax treatment, please confirm with Hello Work, the authority in charge of each scheme, a tax office, a tax accountant, or a similar professional.