Japan Prepayment Tax (Yotei Nozei) Guide for Freelancers 2026
Confused by the tax prepayment notice from Japan's tax office? This guide explains how Yotei Nozei works, 2026 payment deadlines, and how to apply for a reduction if your income has dropped.
Disclaimer: This article is for general informational purposes only and does not constitute tax advice. Please consult a licensed tax professional or refer to the Japan National Tax Agency (NTA) for guidance specific to your situation.
What Is Yotei Nozei?
You've filed your kakuteishinkoku tax return in March — and then a letter arrives from the tax office in June. "Yotei Nozei Gaku no Tsuchisho" (予定納税額の通知書). Yotei Nozei (予定納税) is Japan's income tax prepayment system. If your income tax from the previous year exceeded ¥150,000, the National Tax Agency automatically calculates a prepayment and sends you a notice. This guide explains how it works, when payments are due in 2026, and how to apply for a reduction if your income has dropped.
How It Works
- 1st installment (July): Prior year's assessed income tax × 1/3
- 2nd installment (November): Prior year's assessed income tax × 1/3
- Final settlement (March tax return): Remaining 1/3 reconciled — refund or additional payment
Example: if your 2025 income tax was ¥300,000, your 2026 prepayments will be ¥100,000 in July and ¥100,000 in November.
2026 Payment Deadlines
- Notice arrives: Mid-June 2026
- 1st installment: July 31, 2026 (Thursday)
- 2nd installment: November 30, 2026 (Monday)
Payment methods include e-Tax direct debit, credit card (~0.85% processing fee), convenience stores, bank transfer, and Pay-easy mobile app.
Who Is Subject?
You are subject if your prior year's assessed income tax base exceeded ¥150,000. This mainly affects: freelancers and sole proprietors, employees with significant side income, and those with rental, interest, or dividend income.
Income Dropped? Use the Reduction Application (減額申請)
If your income has fallen, apply for a reduction (gengaku shinsei 減額申請).
Application Windows for 2026
- Reduce both installments: July 1–15, 2026
- Reduce 2nd installment only: November 1–15, 2026
Qualifying Situations
- Business revenue significantly declined
- Extended illness, injury, or parental leave
- Major equipment purchases increasing expenses
- Business closure or suspension
- Significant increase in deductions
How to Apply
- Calculate estimated tax from January 1 to June 30 (or October 31)
- Complete Form No. 11 from the NTA website, or apply via e-Tax
- Attach supporting profit/loss summary
- Submit to your local tax office or via e-Tax
Tools like Denpyo automatically extract amounts and categories from receipt photos — so when July arrives, your year-to-date expense totals are ready. Use Denpyo's free Tax Savings Estimator to see how much you could save.
Official Resources
Summary
- Triggered when prior year assessed income tax ≥ ¥150,000
- Pay 1/3 in July and 1/3 in November; final 1/3 settled at March filing
- If income drops, apply for reduction by July 15 or November 15
- Reduction applications require a year-to-date income/expense summary
- Digitize receipts daily with Denpyo to make these calculations effortless
Track expenses, maximize deductions
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