#Japan #Tokyo #Tax Reform #Sugawara #Student Income

Understanding Parents’ and Students’ Work Attitudes Amid Tax Reform

With the upcoming tax reform in Japan set for 2025, the introduction of the "Special Deduction for Specific Relatives" is reshaping how families perceive work and income limitations. This new policy is aimed at families with children aged 19 to 22, allowing for increased income without losing tax benefits. The survey conducted by tax accountant Yuichi Sugawara, who runs the popular YouTube channel "Datsu-Zeirishi Sugawara-kun", reveals striking insights into the awareness and attitudes of both parents and students regarding this reform.

Survey Overview

The survey was conducted from October 24 to November 4, 2025, through online means, targeting parents living in the Tokyo area (Tokyo, Kanagawa, Chiba, Saitama) with children aged 19 to 23 who are working part-time. A total of 276 parents and 207 students participated in the survey.

Key Findings

Approximately 70% of parents reported being aware of the "103-man yen wall", the income threshold that impacts tax deductions and the financial burden this creates. Remarkably, around 80% recognized the new deduction policy, but understanding of its implications varies.

While only 31% of parents indicated plans to relax income restrictions for their children post-reform, many are still uncertain. Conversely, about half of the students expressed a desire to increase their income despite feeling constrained by these limitations. The desire to work more hours is evident, with over 40% of students wanting to increase their shifts, highlighting the tension between financial need and family constraints.

Impact of the "103-Man Yen Wall"

In terms of household finances, 12.7% of parents admitted to feeling a strong financial burden due to the current restrictions. Conversely, around 31.9% of parents reported not being affected by the wall due to other income considerations, showcasing the disparity in awareness and concern.

For students, half noted that they adjust their working hours based on this wall, primarily concerned about their parents' tax liabilities rather than their financial gain. The results underscore an overarching sentiment: many students limit their income to avoid imposing additional tax burdens on their families, with 58.1% indicating this as their primary motivation for limiting work hours.

Proposed Tax Amendments

Looking ahead, the reform introduces significant changes that grant students the ability to earn more before being affected by tax implications. The income threshold for maintaining tax benefits shifts from 103,000 yen to 188,000 yen gradually, enabling families to manage their finances better while giving students more leeway to work.

More Than Just Numbers

This tax reform is not merely a bureaucratic adjustment but rather a transformative change that impacts both families and the economic behaviors of students. The increase in the income ceiling allows families to reduce financial strain, permitting students to work more freely without immediate financial repercussions on their parents.

As the reform approaches, the need for clarity surrounding the implications of these changes is crucial to help families navigate the new landscape effectively. The findings from Sugawara’s survey greatly illuminate this intersection of finance, family dynamics, and work, setting the stage for a significant shift in how Japanese families approach work and income.

About Yuichi Sugawara

Born in 1975 in Mie Prefecture and now residing in Tokyo, Yuichi Sugawara has become a prominent figure in tax strategies and financial advice. His YouTube channel, launched in December 2022, has amassed over a million subscribers, reflecting his trusted voice in navigating complex financial landscapes. Sugawara’s insights pave the way for families facing economic pressures in a changing tax environment, driving essential conversations about awareness and adaptability.