Medical expenses deductions
Medical expenses deductions are part of a system whereby if the amount of medical care costs paid in one year, including those of family members, exceeds a certain standard, you can file a final tax return with the tax office to have the excess amount of medical care costs deducted from your taxable income and have some of your taxes refunded.
Check with your nearest tax office for details, including how to conduct the necessary procedures. Information is also available on the National Tax Agency website.
National Tax Agency website: http://www.nta.go.jp
In addition to finding out how to file for medical expenses deductions, you can also go to this website to prepare your final tax return and other documents.
How are medical expenses deductions calculated?
When is the filing period for final tax returns?
The filing period for a final tax return is the one-month period from February 16 through March 15. However, if you earn salary income, you can apply for reimbursement of medical expenses deductions or other amounts from January.
What documents are needed to file a final tax return?
The documents and other items needed include the final tax return form which can be prepared at the National Tax Agency website, your certificate of income and withholding tax, your official seal, your deposit passbook of the account where you would like to receive your reimbursement, and your Social Security and Tax Number card (if you do not have a Social Security and Tax Number card, a document that can be used to verify your Social Security and Tax Number and personal identification).
Beginning with income tax returns for 2017, taxpayers are required to attach medical expense deduction details, prepared based on their receipts for medical care and other treatment, in place of the actual receipts.
Although this means you no longer need to attach receipts for medical care and other treatment when filing income tax returns, you are required to retain all receipts for each tax return for five years after the date on which filing the tax return is due.
(While this system change means that medical care cost information issued by a health insurance association can be used as details of medical care costs if such information satisfies certain conditions.
The medical care cost information currently released by the Association on its website does not satisfy these requirements. For this reason, it cannot be used as a document for the purposes of income tax returns. Instead, use it as reference information when preparing your medical expense deduction details.)
- * From January 2022, when filing a tax return in paper format, a deduction certificate with a QR code can be used, which is prepared and printed by the taxpayer using the QR code deduction certificate preparation system based on medical care cost information data (XML format) issued by health insurance societies and other institutions.
Filing a tax return by e-Tax using linkage with Mynaportal
You can obtain medical care cost information data through information linkage with the medical care cost information shown on Mynaportal.
When sending the data obtained in this way together with your tax return using e-Tax, you do not need to retain the receipts for the medical care costs included in the medical care cost information.
For more information on the linkage with Mynaportal, see the National Tax Agency's special Mynaportal linkage webpage.
- * Use of the Mynaportal linkage requires an Individual Number Card and a smartphone (or IC card reader/writer) capable of reading an Individual Number Card.
- * Medical care cost information will be available on Mynaportal from early February each year. (For 2021, this information is available only for medical treatment received in September-December 2021. For 2022 and later, it is available for medical treatment received in January-December.)
Examples of costs eligible for medical expenses deductions
- Costs of treatment paid to a medical care institution
- Cost of purchase of drugs for treatment
- Costs of going to the hospital, house-call costs
- Share of inpatient meal and living expenses you paid
- Costs of dental care not covered by insurance
- Costs of medical consultations from pregnancy through after childbirth and childbirth expenses
- Costs of massage, acupressure therapy, acupuncture, and moxibustion
- Costs of purchase of artificial arms, artificial legs, etc.
- Costs of adult diapers for a person bedridden for six months or longer, with a certificate from a doctor
- Costs of use of health promotion centers involving use of hot springs or exercise, with a doctor's instruction and certificate
- Costs of use of visiting nurse stations
- Costs of use of health services facilities for the aged and convalescent facilities (patient cost-sharing for long-term care expenses, meal expenses, and accommodation expenses)
- One-half of patient cost-sharing for long-term care expenses, meal expenses, and accommodation expenses at special nursing homes for the elderly
- Patient cost-sharing for long-term care expenses when receiving long-term care services at home together with medical care services based on a service plan for persons identified as needing long-term care
- Costs of specific health checkups and specific health guidance for persons eligible for certain active support services as part of specific health guidance
The self-medication tax system (Special exception for medical expense deductions under the self-medication taxation system)
The self-medication tax system (Special exception for medical expense deductions under the self-medication taxation system) is a system of special exceptions for medical expense deductions intended to encourage switching from use of prescribed drugs under appropriate health management.
Under this system, by completing a final income tax return, taxpayers who receive health examinations, vaccinations, or other services for the purposes of health maintenance and promotion or disease prevention and purchase more than 12,000 yen’s worth of eligible over-the-counter drugs per year may deduct from their annual gross income the amount of such costs in excess of 12,000 yen (up to a maximum of 88,000 yen).
- Over-the-counter (OTC) drugs: Drugs that can be purchased at pharmacies, drug stores, and elsewhere without a prescription from a doctor (general nonprescription drugs, drugs requiring guidance).
January 1, 2017 - December 31, 2026
Persons eligible to claim the deduction
Those eligible to claim the deduction will meet all three of the following conditions for the year in question (January-December):
- Pay both income tax and resident tax.
- Purchase more than 12,000 yen in eligible over-the-counter drugs during the year (including over-the-counter drugs purchased for dependent spouse and/or other dependent family members)
- Undergo at least one of the following services for purposes of health maintenance and promotion or disease prevention:
- Health examinations provided by a health insurance society or other party (e.g., complete check-ups and various examination and screening services)
- Health examinations provided by municipal governments as health improvement (health examinations for persons such as public assistance beneficiaries)
- Vaccinations (periodic vaccinations or influenza vaccinations)
- Periodic health examinations provided by employers (employer examinations)
- Specific health checkups (so-called metabolic syndrome examinations) and specific health guidance
- Cancer examinations provided by municipalities
- ** Health examinations provided by municipalities as services for residents and funded by local governments are not eligible.
- ** Optional health examinations paid for entirely by the patient are not eligible.
In general, the drugs covered are those that once required a doctor’s prescription but now can be bought over the counter at drug stores (Rx-to-OTC switch drugs, with some exceptions). Certain nonprescription (OTC) drugs other than Rx-to-OTC switch drugs may be eligible if they are recognized to be highly effective for the rationalization of medical care costs.
Visit the website of the Ministry of Health, Labour and Welfare for Information on eligible active ingredients, products, etc.
- Reference link
Packages of eligible products will show the following identifying mark to help you determine which products to purchase following adoption of this system.
Relationship to ordinary medical expense deductions
You cannot combine deductions from income under the self-medication tax system and ordinary medical expense deductions. Eligible persons must choose whether to use ordinary medical expense deductions or the self-medication tax system for the cost of eligible drugs you purchased.
For information on specific procedures for completing final income tax returns and other matters, check with your nearest tax office, the website of the National Tax Agency, or other sources.