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Lifetime Gift Tax Saving Simulator (Japan)

Enter your yearly gift amount and the number of years to estimate the cumulative gift amount and gift tax of annual (calendar-year) gifting in Japan, and compare it with the inheritance tax on the same amount to see the tax-saving effect. Supports the 1.1 million yen annual exemption and both special and general tax rates.

Input

yen
yrs

Gift tax category

Marginal inheritance tax rate (if not gifted)

Result

Tax saving (vs. inheritance tax)

$3,300,000.00

Cumulative gift

$11,000,000.00

Cumulative gift tax

$0.00

Estimated inheritance tax

$3,300,000.00

Tax saving

$3,300,000.00

How it works

  • Cumulative gift = yearly gift amount × number of years. Gift tax uses Japan's calendar-year taxation, applying the rate to the taxable amount after the 1.1 million yen annual exemption per recipient.
  • Annual gift tax = (yearly gift − 1.1 million yen) × rate − quick deduction, multiplied by the number of years for the cumulative gift tax. It assumes the same amount is gifted each year under the same category.
  • The "special rate" applies to gifts from lineal ascendants (parents, grandparents) to children or grandchildren who are 18 or older on January 1 of the gift year; the "general rate" applies to other gifts. The category changes the tax due.
  • The "marginal inheritance tax rate" is the rate assumed to apply if the same amount instead remained in your estate. Tax saving = cumulative gift × marginal rate − cumulative gift tax (an estimate).
  • Gifts to heirs made within a certain period before death (being extended in stages from 3 to 7 years) may be added back to the estate (gift add-back). This tool does not account for that add-back.
  • All figures are rough estimates only. Actual gift and inheritance taxes vary greatly by asset type, valuation, exemptions, and number of heirs. Consult a tax professional for specific inheritance or gifting planning.

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