# Japan income and tax policy developments > Live situation record from CLSTR: https://clstr.news/situations/japan-income-and-tax-policy-developments > Updated: 2026-10-12T21:10:12.000Z. Sources: 3. Developments: 2. Recent data and upcoming reforms highlight shifts in Japan’s taxation landscape. According to the National Tax Agency’s Statistical Yearbook for fiscal year 2024, approximately 38,000 individuals reported annual incomes exceeding 100 million yen. These high earners are concentrated in urban areas, with Tokyo accounting for roughly 40% of the total. Notably, only about 30% of these individuals are classified as salary earners, while 60% primarily derive income from dividends, capital gains, and other sources. In response to broader tax policy shifts, Japan plans to implement changes to the spousal deduction system in December 2026. The income threshold for individuals whose only income is salary will increase from 103,000 yen to 136,000 yen. Furthermore, a tiered special spousal deduction will remain for those with total incomes of 9 million yen or less, allowing for a maximum deduction of 380,000 yen for spouses with salary incomes up to 1.69 million yen. These adjustments aim to address the ‘dependency wall’ affecting part-time workers. ## Timeline ### 2026-10-12: Japan to raise spousal deduction income threshold in 2026 Japan's 2026 tax reforms will raise the spousal deduction income threshold to 1.36 million yen for salary earners, altering how dependency benefits are calculated during year-end adjustments. 2 sources. https://clstr.news/cluster/japan-to-raise-spousal-deduction-income-threshold-in-2026 ### 2026-10-03: Japan high-income earners: 38,000 people reported over 100 million yen Japan's National Tax Agency reports 38,000 people filed incomes over 100 million yen in 2024, with 40% concentrated in Tokyo and most income coming from dividends and capital gains rather than salaries. 2 sources. https://clstr.news/cluster/japan-high-income-earners-38000-people-reported-over-100-million-yen --- Cite as: Japan income and tax policy developments. CLSTR, https://clstr.news/situations/japan-income-and-tax-policy-developments