Japan Tax Guide for Beginners

Leasing of staff accommodation in Japan


Leasing of staff accommodation in Japan

Question: I am living in the staff accommodation provided by my employer and they deducted a certain amount from my monthly salary as rent payment. Can I know how they determine this certain amount?        Will it affect my salary income tax payment?

Answer: Normally, the employer will consider an amount that will not affect your salary income tax and they will base on the following calculation to find out the rent value to determine the rent reimbursement amount. Further, if the amount is very low or free of charge, it will become taxable item of salary income tax.

Calculation of rent value under Japanese tax law

1.(current year taxable amount of fixed asset tax for building) x 0.2%

2.JPY 12 x (Gross floor area of building(㎡)/3.3 ㎡)

3.(current year taxable amount of fixed asset tax for land) x 0.22%

Rent value= (1)+(2)+(3)

Exemption of salary income tax applies to rent subsidy:

 If over 50% of the rent value is paid by employee, the salary income tax will NOT apply to the difference between the rent value and the reimbursement.


An employer leases staff accommodation (rent value: JPY 10,000) to an employee.

A)  If the employer provides the staff accommodation to the employee for free, JPY 10,000 will be recognized as salary income, and therefore it is taxable.

B)  If the employee pays JPY 3,000 back to the employer, the difference JPY 7,000 (JPY 10,000-3,000) will be taxable.

C)  If the employee pays JPY 6,000, which is over 50% of rent value (JPY 10,000), the difference JPY 4,000(10,000-6,000) will NOT be taxable.

 This is not only limited to staff accommodation owned by the employer, also includes when the rental contract is in the tenant(employer)’s name. The rent value calculation is same as above.

Taxable situations:

1.If the employee is residing in the staff accommodation provided by employer for free, the value of rent will be treated as taxable salary.

2.In cases the employee affords less than 50% of the rent value, the difference between the rent value and the reimbursement will be treated as taxable salary.

3.Housing allowance is paid by CASH.

4.If the rental contract is in the tenant(employee)’s name and he/she pays the rent, it is not considered staff accommodation according to Japanese tax law.

For more details, please feel free to contact TOMA Consultants Group.

 TOMA Consultants Group English Site      ⇒ http://toma.co.jp/en/



















A)  従業員が無償で借りる場合には、1万円が給与として課税されます。

B)  従業員が3千円の家賃を負担する場合には、賃貸料相当額である1万円と3千円との差額である7千円が給与として課税されます。

C)  従業員が6千円の家賃を負担する場合には、6千円は賃貸料相当額である1万円の50%以上ですので、賃貸料相当額である1万円と6千円との差額の4千円は給与として課税されません