Tax

Allowances Included in Employment Income

January 1, 2026

This article explains in detail which allowances are counted as employment income. Some allowances, such as commuting and duty allowances, may be partially tax-exempt. Understanding these rules can help you better manage your taxes.

In general, the following allowances are included in employment income: overtime pay, holiday work allowance, job responsibility allowance, regional allowance, family (dependent) allowance, and housing allowance. However, the following are tax-exempt: commuting allowances up to a certain amount, necessary travel expenses for job transfers or business trips, and overnight or daytime duty allowances up to a certain amount.

Source

国税庁

This information is reference material based on official announcements. Always verify accurate information on official websites or with relevant authorities.