SORABYCO | Life in Japan

When I shop for groceries in Japan, I’m used to seeing different tax rates on my receipt. Most everyday purchases are taxed at 10%, while many food and non-alcoholic drinks are currently covered by the reduced 8% consumption tax rate. So when I first heard that Japan plans to cut the tax on food to 1%, my immediate reaction was: Does that mean almost everything in my supermarket basket will be taxed at just 1%? Not quite. Japan’s Cabinet approved a basic policy on August 5, 2026, that calls for the reduced consumption tax rate on eligible food and beverages to fall from 8% to 1% for two years starting April 1, 2027 . The important words here are “eligible food.” Alcohol and restaurant dining are not currently part of the reduced-rate category, so the headline “1% food tax” is much broader than the actual plan. There is another point worth keeping in mind. The Cabinet has approved the basic policy, but residents should still check the final rules and implementation details as April 2027...

Ever since I paid my withholding tax, taxes have been on my mind more than usual. I joked to myself that life would be much easier if paying one tax bill meant I was finished for the year. Unfortunately, taxes rarely work that way. When I started blogging, taxes were the last thing on my mind. I was more focused on writing articles, learning how YouTube worked, experimenting with social media, and trying affiliate programs. As I started earning small amounts from different online activities, I naturally began wondering how taxes would work. One question kept coming back to me: “Do I need to file a tax return if I earn side hustle income in Japan?” Every answer seemed to lead to another question. Does the same rule apply to employees and self-employed people? Do blogging expenses count? What happens if the income is only a small amount? The answer depends on your employment status, the type and amount of income you receive, and your overall tax situation. This article provides general i...