Japan Inheritance Tax: A Complete Guide for Expats and Foreign Residents

Japan has one of the highest inheritance tax rates in the developed world, with a top marginal rate of 55%. For expats and foreign residents, the rules are particularly complex because they depend on your visa type, how long you have lived in Japan, and where the deceased and their assets were located.

Who Is Liable for Japanese Inheritance Tax?

Three categories of people can be liable for Japanese inheritance tax on assets received from a deceased person: 1. Unlimited taxpayers: Japanese citizens and Table 2 visa holders (spouse, PR, long-term resident) who have lived in Japan — taxed on worldwide inherited assets. 2. Limited taxpayers: Table 1 visa holders (work, student) who have lived in Japan for less than 10 years — taxed only on assets located in Japan. 3. 10-year residents: Table 1 visa holders who have lived in Japan for 10+ years out of the last 15 — taxed on worldwide inherited assets.

If you hold a spouse visa or permanent residency, you are an unlimited taxpayer from day one. Even if the deceased never set foot in Japan and all assets are overseas, Japan can tax your inheritance.

The Basic Deduction: How Much Is Tax-Free

Japan provides a substantial basic deduction before inheritance tax applies: Basic Deduction = ¥30 million + (¥6 million × number of statutory heirs) For example, if a deceased person leaves assets to a spouse and two children (3 statutory heirs), the deduction is: ¥30M + (¥6M × 3) = ¥48 million tax-free. Any inheritance above this amount is subject to tax at progressive rates.

Inheritance Tax Rates (2026)

Up to ¥10M: 10%
¥10M – ¥30M: 15% (minus ¥500,000 deduction)
¥30M – ¥50M: 20% (minus ¥2,000,000 deduction)
¥50M – ¥100M: 30% (minus ¥7,000,000 deduction)
¥100M – ¥200M: 40% (minus ¥17,000,000 deduction)
¥200M – ¥300M: 45% (minus ¥27,000,000 deduction)
¥300M – ¥600M: 50% (minus ¥42,000,000 deduction)
Over ¥600M: 55% (minus ¥72,000,000 deduction)

Spouse tax credit: A surviving spouse can receive up to ¥160 million or their statutory share (whichever is larger) completely tax-free. This is one of the most important reliefs in the system.

Overseas Inheritances: What Gets Taxed

If you are an unlimited taxpayer (or a 10+ year Table 1 holder) and inherit assets from a family member overseas, Japan taxes only the portion you receive — not the entire overseas estate. The basic deduction (¥30M + ¥6M × statutory heirs) applies to the entire estate, and your share is calculated proportionally.

For example: if a parent in the US leaves a $2M estate to you and one sibling, and there are 2 statutory heirs, the deduction is ¥30M + (¥6M × 2) = ¥42M. Your half of the estate is $1M (≈¥140M). Your taxable amount = ¥140M − (¥42M ÷ 2) = ¥119M. The tax on that could exceed ¥40M at the top rates.

Tax Treaties and Foreign Tax Credits

Japan has inheritance tax treaties with the United States, United Kingdom, France, and a few other countries. These treaties prevent double taxation — if you pay inheritance tax in the deceased's country, you can claim a foreign tax credit against your Japanese inheritance tax liability. However, the credit is limited to the Japanese tax attributable to the foreign assets.

If you expect to receive a significant inheritance from overseas, consult a tax professional before the inheritance occurs. There are legitimate planning strategies — such as gifts while alive or structuring the estate — that can reduce your Japanese tax exposure.

Illustration showing inheritance tax calculation with basic deduction and progressive rates — Japan's inheritance tax uses a basic deduction of ¥30M + ¥6M per statutory heir, with progressive rates up to 55%.

For official details, visit the NTA Inheritance Tax Guide and review Japan's inheritance tax treaties.