Disclaimer: This article is for informational purposes only. Please consult a qualified tax, investment, or real estate advisor for advice specific to your situation.
The Japanese government has introduced key reforms in its child allowance system starting from October 2024, bringing welcome news for many families—especially those with high school-aged children. This article simplifies the new rules and what they mean for both high school and college-going dependents.
Key Changes in Child Allowance (Effective October 2024)
One of the most significant changes this year is the removal of the income limit for receiving child allowance. This means all eligible families, regardless of income, will receive the benefit.
Updated Child Allowance Structure (Paid every 2 months – 6 times per year):
| Age Group | Previous Amount (With Income Limit) | New Amount (No Income Limit) |
| 0 to <3 years | ¥15,000 | ¥15,000 |
| 3 to Elementary School | ¥10,000 (from 3rd child: ¥15,000) | ¥10,000 (from 3rd child: ¥15,000) |
| Junior High School | ¥10,000 | ¥10,000 |
| High School (under 19) | Not Applicable | ✅ ¥10,000 (from 3rd child: ¥30,000) |
New Inclusion: High school students (under 19) are now eligible for child allowance for the first time.
Source: Edogawa City Notice (PDF)
Should High School Students Remain as Dependents?
Yes—but with a trade-off. Even though high schoolers can now receive child allowance, parents claiming them as dependents will see a reduction in their tax deductions starting from 2026.
Proposed Tax Deduction Changes for High School Dependents (Age 16–18)
| Tax Type | Current Deduction | From 2026 |
| Income Tax | ¥380,000 | ¥250,000 |
| Resident (Local) Tax | ¥330,000 | ¥120,000 |
While the tax benefit reduces, parents still gain overall, thanks to the allowance payments being higher than the deduction loss for many families.
Reference: Aeon Bank Feature
What About College Students (Age 19–23)?
College students are not eligible for the new child allowance. However, they continue to offer parents and guardians the highest tax deductions due to educational expenses.
Current Tax Deduction for College-Age Dependents:
| Tax Type | Deduction |
| Income Tax | ¥630,000 |
| Resident Tax | ¥450,000 |
In addition:
- Working college students can apply for a “working student deduction” of ¥270,000 to reduce their own taxable income.
- The non-taxable income limit for students is expected to rise from ¥1,030,000 to ¥1,500,000 (timeline pending).
Reference: Nikkei Article
Final Thoughts
These policy updates are a big step forward in supporting families with growing children in Japan. Here’s what you need to keep in mind:
- From October 2024, all families with high schoolers (under 19) will receive child allowance.
- From 2026, expect a reduction in tax deductions for parents with high school-age dependents.
- College-going children still offer significant tax benefits, even though they are not eligible for allowance.
- If your child works part-time, watch for updates on the new tax-free income limit.
