Meal Allowance Tax Change in Japan (From April 2026)

Japan plans to increase the tax-free limits for employee meals and allowances starting April 1, 2026.

This change is part of the FY2026 tax reform.

　　　What will change?

1. Company-paid meals (cafeteria, etc.)

• Current limit: JPY 3,500 per month

• New limit: JPY 7,500 per month

If the conditions are met, this amount is not taxed as income for employees.

2. Late-night meal allowance (cash instead of food)

• Current limit: JPY 300 per time

• New limit: JPY 650 per time

　　　Important condition (unchanged)

Employees must still pay at least 50% of the meal cost.

If this condition is not met, the benefit may become taxable.

　　　When does it apply?

• New rules apply to meals or allowances provided on or after April 1, 2026

• Until March 2026, current limits still apply

  
  

  　　Why this matters

  • Employees may receive more tax-free benefits

  • Companies can reduce employees’ cost for meals

  • Payroll and internal rules may need to be updated before April

  If the company pays more than the limit,

  the full excess amount becomes taxable.For foreign business owners

  If you run a business in Japan:

  • Review your company policies (福利厚生 rules)

  • Check how meal benefits are provided

  • Prepare for changes before April 2026

    
    

    Key takeaway

    From April 2026, tax-free limits for employee meals will increase significantly.Both employees and employers should check and prepare early.