#Japan #Tokyo #OkaneCo #Household Finances #1.03 Million Yen

Understanding the 1.03 Million Yen Taxation Threshold

In light of the upcoming tax reform outlined for December 2025, a recent survey conducted by 400F, the managing company behind OkaneCo, has shed light on how individuals perceive the implications of the newly proposed adjustments to the 1.03 million yen taxation threshold. This reform has sparked significant interest as it aims to alleviate financial burdens for many households. However, the survey findings suggest that consumers are grappling with complex calculations and a lack of understanding regarding the new regulations.

Survey Findings Expose Common Concerns

Limited Self-Calculation Abilities

When asked whether respondents felt they could determine the most advantageous amount to earn under the new system, only a mere 12.1% exhibited confidence in their ability to navigate these calculations without external assistance. Notably, 30% expressed a desire to rely on professionals or tools, while 29.4% admitted to feeling overwhelmed by the complexity of the system and had given up trying to make sense of it. Overall, a staggering 87.9% of participants indicated confusion regarding the intricacies of the new framework, a clear sign of the pressing need for clarity and guidance.

A Lack of Knowledge Leading to Financial Loss

The survey further revealed that nearly one in four respondents experienced financial losses due to a lack of understanding related to the income barrier. Approximately 24.8% reported having experienced some form of financial setback linked to their misunderstanding of this threshold. The most common issues involved either exceeding the threshold slightly, resulting in decreased take-home pay due to taxes and social insurance contributions, or family members unintentionally crossing the limit, leading to heightened tax burdens for the household. Surprisingly, 6.4% of participants acknowledged that fear of losing benefits led to them reducing their work hours unnecessarily, thereby contributing to missed opportunities.

Unchanged Work Hours Post-Adjustment

Considering the societal impact of this adjustment, only 6.7% of respondents indicated a willingness to increase their working hours following the policy change, while 55.2% didn't even recognize the threshold in their current work-life. Despite the increase in household income, many participants indicated they preferred to maintain their current work situation, citing reasons such as physical limitations or the persisting social insurance barriers that continue to impose restrictions, inhibiting further enhancements to their financial situations.

Prioritizing Investments Over Living Expenses

Interestingly, in response to how households would utilize the additional take-home income derived from the revised legislation, 50.9% indicated that they would prioritize investment opportunities over lifestyle expenses. Only 28.5% planned to allocate funds toward everyday living costs such as groceries or utilities. This trend indicates a growing focus on future asset accumulation rather than immediate consumption, suggesting a shift in financial priorities among consumers.

Ongoing Support and Guidance with OkaneCo

As the research unveils the challenges individuals are facing in the wake of the revised threshold, 400F remains dedicated to providing insightful financial guidance through OkaneCo. The platform aims to help users gain a clear understanding of their financial situations, enabling them to make informed decisions regarding their work and investment strategies in these uncertain times. In a rapidly changing financial landscape, the need for navigable solutions and professional advice remains stronger than ever.

Survey Overview

Name: 103 Million Yen Taxation Threshold Awareness Survey

Method: Web Survey

Period: January 17-18, 2026

Participants: 330 users from OkaneCo nationwide

Age Distribution: 15.2% under 30; 27.0% in their 40s; 34.5% in their 50s; 23.3% over 60

Income Distribution: 26.1% earning below 4 million yen; 17.0% earning between 4-6 million yen; 15.4% earning between 6-8 million yen; 13.9% earning between 8-10 million yen; 6.7% earning between 10-12 million yen; 14.2% earning above 12 million yen; 6.7% uncertain

About OkaneCo

OkaneCo provides a unique online financial advisory service allowing users to assess their financial positions by answering a series of questions online, leading to personalized insights and professional advice. Launched in November 2017, the company seeks to revolutionize the way individuals address and resolve their financial concerns, ensuring that everyone has access to the resources essential for navigating their personal finance challenges effectively.