Japan Pension Refund Calculator (脱退一時金 Lump-sum Withdrawal Payment)

Free calculator for Japan's pension lump-sum withdrawal payment (脱退一時金) — National or Employees' Pension — and the refund available by filing selective taxation on retirement income. For foreign nationals leaving Japan.

Estimated payment

¥550,000

Withholding and refund estimate (Employees' Pension only)

Income tax withheld at payment (20.42%)-¥112,310

Amount received after withholding¥437,690

Refund estimate via "selective taxation on retirement income"

By filing a "Tax Return for Refund Due to Taxation on Retirement Income at the Taxpayer's Option" after leaving Japan, you can have this payment retaxed as if it were ordinary retirement income. Your coverage period counts as years of service for the retirement income deduction, so in many cases some or all of the withheld tax is refunded.

Years of service used for the deduction2 years

Retirement income deduction (from years of service)¥800,000

Recalculated income tax under this election¥0

Estimated refund¥112,310

Under these numbers, the full amount withheld is estimated to be refundable.

Procedure (overview)

File a moving-out notification (転出届) with your municipality before leaving Japan.
Submit the Lump-sum Withdrawal Payment claim form to the Japan Pension Service within 2 years of leaving Japan (you must have no address in Japan).
To claim a refund, submit a "Notification of Tax Agent for Income Tax/Consumption Tax" to the tax office before leaving (or together with your tax return if you didn't).
Once you receive the payment notice, from January 1 of the following year, have your tax agent file the selective-taxation tax return with the tax office.

The lump-sum payment and any refund are paid into a Japanese bank account. If you've already left and can't keep one open, an international transfer service like Wise is one way to move the money to an account abroad.

Main eligibility conditions (both schemes)

You are not a Japanese national.
You have at least 6 months of coverage.
You have not met the 10-year eligibility period for an old-age pension.
You have never had the right to receive a disability pension.
You have no address in Japan.
You file within 2 years of no longer having an address in Japan.

Approximate estimate. For Employees' Pension, average standard remuneration is simplified to a single "average monthly pay" input — it excludes the 1.3x adjustment for coverage before April 2003 and bonuses (standard bonus amount). The refund estimate uses the National Tax Agency's method for short-service retirement allowances and covers income tax and the special reconstruction income tax only (resident tax is not part of this election). Whether you meet the 10-year old-age pension eligibility period is not checked by this calculator. This is general information, not tax, legal, or financial advice.

FAQ

Q.Is it true the cap is rising from 5 years to 8 years in April 2026?

A 2025 pension reform law (promulgated June 20, 2025) does raise the counted period from 60 to 96 months, but its effective date is left to a future cabinet order — the law only says it must start “within 4 years of promulgation” (legally, by around June 19, 2029). As of September 2026 that cabinet order has not been issued, and the Japan Pension Service's own page (last updated April 1, 2026) still uses the 60-month cap with no mention of a change. The widely repeated “April 2026” date appears to confuse the effective date of the broader pension reform law with this specific provision. Check the Japan Pension Service's site for the current figure before relying on a higher number.

Q.Will I actually get a refund of the 20.42% withheld?

Often yes, and sometimes all of it. The National Tax Agency's own worked example uses a ¥291,478 Employees' Pension payment with a short coverage period: the ¥800,000 retirement income deduction exceeds the payment, so the recalculated tax is ¥0 and the full ¥59,519 withheld is refundable. Larger payments or longer coverage can still leave some tax owed on the amount above the deduction. National Pension payments are never withheld in the first place, so this refund process doesn't apply to them.

Q.Do I need a Japanese bank account to receive the money?

Yes — the payment and any refund are sent to a Japanese bank account. Keeping an account open (or using a family member's or your tax agent's) is the simplest option. If that's not possible, an international transfer service such as Wise is one way to move the money to an account in your home country afterward.