Japan government mulls raising tax-free income threshold from Jan. 2026

The government and the ruling parties are considering applying a higher income tax exemption threshold from January 2026, in a move to incentivize part-timers to work longer hours amid Japan's labor shortage, a source close to the matter said Tuesday.The schedule is expected if the government decides on raising the threshold for imposing income tax, currently set at a minimum annual income of 1.03 million ($6,900), in its tax reform plan for the next fiscal year starting April. Related bills will be subsequently deliberated in the Diet for likely enactment around the spring.The ruling Liber…READ FULL ARTICLE