Tax Benefits and Subsidies for People with Disabilities in Japan
Living with a disability in Japan is expensive, but there are ways to reduce those costs that many families are unaware of. Japan offers tax deductions, medical copay reductions, fee exemptions, assistive device subsidies, and municipal benefits that can make a real difference over time. Some of these apply automatically once you have a disability handbook. Others require a separate application. Specific amounts and thresholds change over time, so this article explains what each benefit is, who qualifies, how to apply, and provides links where you can check the current figures.
Part 1: Tax Deductions
Disability Tax Deduction (Shougaisha Koujyo / 障害者控除)
If you or a family member in your household has a disability, you can claim a deduction on your income tax (shotoku zei / 所得税) and resident tax (juumin zei / 住民税). This is one of the most broadly applicable benefits and is available to anyone with a disability handbook or equivalent documentation.
There are three tiers of deduction, each reducing your taxable income:
- Regular disability (Ippan no Shougaisha / 一般の障害者): The standard deduction for people who hold a disability handbook.
- Special (severe) disability (Tokubetsu Shougaisha / 特別障害者): A larger deduction for people with more severe disabilities, including physical disability handbook grade 1 or 2, ryouiku techou grade A, and mental health handbook grade 1.
- Co-residing special disability (Doukyou Tokubetsu Shougaisha / 同居特別障害者): The largest deduction, for when a family member with a special disability lives with the taxpayer.
How to claim: If you are employed, include it in your year-end adjustment (nenmatsu chousei / 年末調整) on the dependent deduction form. If you file your own tax return (kakutei shinkoku / 確定申告), include it there.
Check current deduction amounts: NTA: Disability Deduction (No.1160)
Medical Expense Deduction (Iryouhi Koujyo / 医療費控除)
This is not specific to disability, but it is especially relevant for families of people with disabilities. If your household’s total medical expenses exceed a set threshold in a year, you can deduct the excess from your taxable income. This includes hospital visits, prescriptions, transport costs to medical appointments, and for people with disabilities, items such as stoma supplies and incontinence products. Many families of people with disabilities reach the threshold without realizing they could be claiming the deduction.
How to claim: Include it in your annual tax return (kakutei shinkoku / 確定申告). Keep all medical receipts throughout the year.
Check current thresholds: NTA: Medical Expense Deduction (No.1120)
Tax-Exempt Savings (Maruyuu / マル優)
People with disability handbooks can open a special savings account where interest earned is tax-free, up to a set principal limit. Normally, interest income in Japan is taxed at approximately 20%. For people with disabilities, this tax is waived on qualifying savings. This is called the shougaisha tou no maruyuu (障害者等のマル優). There is also a separate tax-exempt allowance for government bonds (tokubetsu maruyuu / 特別マル優).
How to apply: Apply at your bank or financial institution with your disability handbook. The bank handles the tax office notification.
Check current limits: NTA: Tax-Exempt Savings for Persons with Disabilities (No.1313)
Individual Business Tax Reduction (Kojin Jigyou Zei / 個人事業税)
People with certain disabilities who are self-employed or run their own business may qualify for an exemption or reduction of the individual business tax. The specific rules vary by prefecture. If you are self-employed and hold a disability handbook, ask at your prefectural tax office (kenzei jimusho / 県税事務所) whether you qualify.
Inheritance Tax and Gift Tax
Japan’s inheritance tax system includes a disability deduction, and the special needs trust system provides a significant gift tax exemption. These are covered in articles on the detail in our articles on the Adult Transition and Future page.
Part 2: Medical Cost Reductions
Self-Support Medical Care (Jiritsu Shien Iryou / 自立支援医療)
Japan’s national health insurance normally requires a 30% copayment for medical treatment. The self-support medical care system reduces this to 10% for specific disability-related medical treatment. There are three categories:
- Child development medical care (Ikusei Iryou / 育成医療): For children under 18 with physical disabilities. Covers surgeries and treatments to improve physical function.
- Rehabilitation medical care (Kousei Iryou / 更生医療): For adults aged 18 and over with physical disabilities and a physical disability handbook. Covers treatments to maintain or improve function.
- Mental health outpatient care (Seishin Tsuuin Iryou / 精神通院医療): For people of any age with mental health conditions (including developmental disabilities such as autism and ADHD). Covers outpatient psychiatric and psychological treatment. This is the most commonly used category for families of children with developmental disabilities.
In addition to the reduced copay rate, there are monthly copayment caps based on household income.
How to apply: Apply at the shougai fukushi ka (障害福祉課) at your ward or city office with a doctor’s opinion or diagnosis.
Details and income-based caps: MHLW: Self-Support Medical Care
Severely Disabled Persons Medical Fee Subsidy (Juudo Shinshin Shougaisha Iryouhi Josei / 重度心身障害者医療費助成制度)
Many prefectures and municipalities offer an additional medical cost subsidy for people with severe disabilities. This program goes beyond self-support medical care and can cover most or all of the remaining copayment for medical treatment, including hospital visits, prescriptions, and dental care. Eligibility typically requires a severe disability handbook, such as shintai shougaisha techou (身体障害者手帳) grades 1 or 2, or ryouiku techou (療育手帳) grade A. The specific name, coverage, and income limits vary by municipality.
How to apply: Apply at the shougai fukushi ka (障害福祉課) at your ward or city office. You will receive a medical subsidy recipient certificate to present at medical facilities.
Children’s Medical Fee Subsidy (Kodomo Iryouhi Josei / 子ども医療費助成)
This is not specific to disability, but it is important: most municipalities in Japan subsidize children’s medical costs, often covering the full copayment up to age 15 or 18. The specific rules vary by municipality. If your child has a disability, this subsidy works alongside self-support medical care and the severely disabled persons medical fee subsidy to reduce your out-of-pocket costs further.
How to apply: Apply at your ward or city office. You will receive a medical subsidy recipient certificate (iryoushou / 医療証) to present at medical facilities.
Part 3: Fee Exemptions and Reductions
NHK Fee Exemption
Japan’s public broadcaster NHK charges a receiving fee (jushinryou / 受信料) to all households with a television. People with disabilities may be eligible for a full or partial exemption:
- Full exemption: Available to households receiving public assistance, or municipal tax-exempt households where a member holds a disability handbook.
- Half exemption: Available when the household head has a visual or hearing disability handbook, severe physical disability, severe intellectual disability, or severe mental health disability.
How to apply: Apply at your ward office. They will issue a certificate to submit to NHK.
Vehicle Tax Reduction (Jidousha Zei Genmen / 自動車税減免)
If a vehicle is owned by or primarily used for the transportation of a person with certain disabilities, the annual automobile tax and light vehicle tax may be reduced or fully exempted. The specific eligibility depends on the type and grade of disability and varies by prefecture.
How to apply: Apply at the prefectural tax office (kenzei jimusho / 県税事務所) with your disability handbook, vehicle registration, and driver’s license. For a detailed guide, see our article on Car Tax Reduction for People with Disabilities.
Mobile Phone Disability Discount (Keitai Denwa Shougaisha Waribiki / 携帯電話障害者割引)
Japan’s major mobile phone carriers (docomo, au, SoftBank) offer discounted plans for disability handbook holders. The specific discounts vary by carrier and plan, but can include reduced monthly fees and waived administrative charges. Show your disability handbook at your carrier’s shop to apply, or check your carrier’s website for current plans and eligibility.
Postal Discount (Yuubin Ryoukin Waribiki / 郵便料金割引)
Mail containing braille (tenji yuubinbutsu / 点字郵便物) can be sent for free through Japan Post. This applies specifically to people with visual disabilities.
Customs Duty Exemption (Kanzei Menjo / 関税免除)
Certain items imported for personal use by people with disabilities, such as assistive devices and daily living aids, may be exempt from customs duty. If you are importing assistive equipment from overseas, ask at your local customs office (zeikan / 税関) whether an exemption applies.
Part 4: Transport Discounts
Japan offers a wide range of transport discounts for disability handbook holders, including JR and private railway discounts, domestic airline discounts, highway toll reductions, local bus and taxi discounts, and municipal transport subsidies such as taxi vouchers and fuel cost reimbursement. These are covered in detail in our articles:
- Disability Discounts for Travel (covering JR, private railways, airlines, ferries, and attractions)
- The ETC Highway Toll Discount
- Car Tax Reduction for People with Disabilities
- Local Transport Subsidies for People with Disabilities (covering taxi vouchers, fuel subsidies, and free bus passes)
Part 5: Assistive Devices and Equipment
Assistive Device Subsidies (Hosougu Hi Shikyuu / 補装具費支給)
The government subsidizes the cost of assistive devices (hosougu / 補装具) necessary for daily life and mobility. Covered devices include wheelchairs, hearing aids, prosthetic limbs, orthotic devices, white canes, and more. The person pays a 10% copayment, with the same income-based monthly caps as other disability welfare services.
How to apply: Apply at the shougai fukushi ka (障害福祉課) at your ward office with a doctor’s opinion and a quote from a registered provider.
Details: MHLW: Assistive Devices
Daily Living Equipment Grants (Nichijou Seikatsu Yougu Kyuufu / 日常生活用具給付)
Municipalities provide grants for daily living equipment tailored to specific disabilities. The available items and subsidy amounts vary by municipality, but common examples include:
- Fire alarms with vibration or light alerts for people with hearing disabilities
- Special beds and mattresses for people with severe physical disabilities
- Communication devices for people who are nonspeaking
- Bathing aids and bathroom modifications
- Portable ramps
- Incontinence supplies for people with severe disabilities
How to apply: Apply at the shougai fukushi ka (障害福祉課) at your ward office. Check your municipality’s list of covered items, as this varies significantly.
Part 6: Municipal Benefits
In addition to the national programs above, many municipalities offer their own benefits for residents with disabilities. These vary widely by location, so you need to check with your specific ward or city office. Common examples include:
- Water and sewage fee reduction: Some municipalities reduce water charges for households with a disability handbook holder.
- Free or reduced admission: Many municipal facilities (pools, parks, museums, sports centers) offer free or reduced admission for people with disability handbooks and their caregivers.
- Parking permit: Many prefectures issue parking permits for vehicles transporting people with severe disabilities, allowing parking in restricted areas.
- Bulky garbage collection fee waiver: Some municipalities waive the fee for bulky garbage collection (sodai gomi / 粗大ごみ) for households with a disability handbook holder.
For municipal transport subsidies including taxi vouchers and fuel subsidies, see our article on Local Transport Subsidies for People with Disabilities.
Practical Tips
- Go to your ward office with your disability handbook and ask for a complete list of benefits available in your municipality. Many families miss savings simply because they do not know they exist.
- Claim the disability tax deduction every year. If you have been eligible but did not claim it in past years, you can file amended returns for up to five years back.
- If your child has a developmental disability such as autism or ADHD, ask about seishin tsuuin iryou (mental health outpatient self-support medical care). This reduces the copay for psychiatric and developmental outpatient visits to 10%.
- Ask about the severely disabled persons medical fee subsidy at your ward office. If your child holds a ryouiku techou grade A or shintai techou grade 1 or 2, you may qualify for additional medical cost coverage on top of self-support medical care.
- Open a maru-yuu savings account at your bank. The tax savings on interest add up over time.
- Keep all medical receipts throughout the year. If your household’s total medical expenses exceed the threshold, you can claim the medical expense deduction on your tax return.
- Municipal benefits change. Check with your ward office periodically to see if new programs have been added.
Key Terms
| English | Japanese Term |
| Disability tax deduction | Shougaisha koujyo / 障害者控除 |
| Special (severe) disability | Tokubetsu shougaisha / 特別障害者 |
| Medical expense deduction | Iryouhi koujyo / 医療費控除 |
| Tax-exempt savings | Maruyuu / マル優 |
| Self-support medical care | Jiritsu shien iryou / 自立支援医療 |
| Mental health outpatient care | Seishin tsuuin iryou / 精神通院医療 |
| Severely disabled persons medical fee subsidy | Juudo shinshin shougaisha iryouhi josei / 重度心身障害者医療費助成制度 |
| NHK receiving fee | Jushinryou / 受信料 |
| Automobile tax | Jidousha zei / 自動車税 |
| Assistive device | Hosougu / 補装具 |
| Daily living equipment | Nichijou seikatsu yougu / 日常生活用具 |
| Year-end tax adjustment | Nenmatsu chousei / 年末調整 |
| Tax return | Kakutei shinkoku / 確定申告 |
Useful Resources
NTA: Disability and Tax Overview (障害者と税): https://www.nta.go.jp/publication/pamph/koho/kurashi/html/03_2.htm
NTA: Disability Deduction (No.1160, 障害者控除): https://www.nta.go.jp/taxes/shiraberu/taxanswer/shotoku/1160.htm
NTA: Medical Expense Deduction (No.1120, 医療費控除): https://www.nta.go.jp/taxes/shiraberu/taxanswer/shotoku/1120.htm
NTA: Tax-Exempt Savings for Persons with Disabilities (No.1313): https://www.nta.go.jp/taxes/shiraberu/taxanswer/shotoku/1313.htm
MHLW: Self-Support Medical Care (自立支援医療): https://www.mhlw.go.jp/stf/seisakunitsuite/bunya/hukushi_kaigo/shougaishahukushi/jiritsu/index.html
MHLW: Assistive Devices (福祉用具): https://www.mhlw.go.jp/stf/seisakunitsuite/bunya/hukushi_kaigo/shougaishahukushi/yogu/index.html
MHLW: Disability Welfare (障害者福祉): https://www.mhlw.go.jp/stf/seisakunitsuite/bunya/hukushi_kaigo/shougaishahukushi/index.html
NHK Fee Exemption Information: https://www.nhk-cs.jp/jushinryo/exemption_list.html
