🎁 Japan Gift Tax Calculator

Gift tax (贈与税, zōyozei) applies when you receive a gift of money or property from another individual (not from a company, which is salary) during the calendar year. Every recipient has an annual 1.1 million yen exclusion (基礎控除) — gifts under that in a year are tax-free. Above the exclusion, tax is progressive from 10% to 55%. Gifts from parents and grandparents to their children/grandchildren in certain settings use the special grandparent-grandchild rate (特例税率), which tops out at 55% but with higher low-rate bands.

The tax is paid by the recipient, filed in their own tax return (贈与税申告書) by March 15, and paid in cash by March 31. The 1.1-million exclusion applies per recipient per calendar year across all donors, so three parents each giving 500,000 still consume the same single exclusion. For transfers at death rather than during life, see the inheritance tax calculator.

The taxable amount is the total annual gift minus the 1.1-million exclusion. The calculator applies the progressive table for ordinary gifts (一般税率) or the special grandparent-grandchild table (特例税率) when the donor is a grandparent and recipient a grandchild 18 or older. The tax is the bracket rate minus a deduction, exactly like income tax.

Annual taxation vs. succession settlement. Japan offers two gifting schemes with very different rate structures.

The housing gift exemption lets parents/grandparents give up to 10 million yen (15 million for energy-efficient homes) toward a child’s first home free of gift tax, and the education gift exemption covers tuition payments. Planning a larger transfer? Compare with the inheritance tax calculator — annual gifting vs. one inheritance can save real money.

1. Enter the total value of gifts received this calendar year (in yen).
2. Choose the relationship: ordinary gift or grandparent-to-grandchild.
3. Indicate whether a special exemption applies (housing, education).
4. Click Calculate to see the taxable amount after the 1.1M exclusion and the gift tax due.
5. Review the filing deadline note (March 15 of the following year).

Who pays gift tax — the giver or receiver?

The recipient pays, using their own exclusion and rate. The giver is not taxed (and cannot deduct the gift as a business expense unless it is a business promotion). The return is filed by the recipient.

Does every gift count toward the 1.1M exclusion?

Yes — cash, property, shares and even the forgiven part of a loan all count. But certain gifts are excluded: gifts between spouses for living expenses, gifts for education/housing under the special schemes, and public interest donations.

What is the special grandparent-grandchild rate?

Gifts from grandparents to grandchildren aged 18+ can use the special rate table, which has lower top rates (50% above 30M) and higher 30%+ thresholds — favourable for large generational transfers compared with the general 55% cap.

Is there a spouse exclusion?

Gifts between spouses for their daily living are not gifts at all, and a one-time special exemption of up to 20 million yen applies to a house or land given to a spouse. Beyond that, ordinary gift tax applies.

What if I receive money from a parent while studying abroad?

Tuition and living expenses paid directly by parents for education are exempt under the education gift scheme (教育資金の一括贈与) up to 15 million yen per grandparent. Lump-sum support above that is a taxable gift.

Should I gift or leave the money in the inheritance?

It depends: gifts over three years before death are added back into the inheritance, so late gifting gains nothing. Gifting early in life (over 1.1M/year) can beat inheritance tax at high brackets. Run both numbers — this calculator and the inheritance one — before deciding.

This tool is for informational purposes only and does not constitute financial advice. Consult a qualified financial professional for advice specific to your situation.

The 1.1-million exclusion resets every January 1, so spreading a large transfer over several years can dramatically cut tax — five years of 1.1M gifts is 5.5M with zero tax. But if you die within three years of the gifts they roll back into the inheritance (相続時精算課税 applies to amounts over 25M), so aggressive gifting near the end of life can backfire. The grandparent-to-grandchild rate is usually gentler above 3M and the housing gift exemption can eliminate the tax on a first home entirely. Money received as a salary or from business is not a gift — it is income, taxed under the income tax rules instead.