Is an inheritance tax return required? The basic exemption, the ten-month deadline and how to think about filing

In short: not everyone who inherits must file an inheritance tax return. The first point to check is the relationship between the net estate calculated without using special provisions and the basic exemption of 30 million yen plus 6 million yen per statutory heir. However, the total amount of the estate alone does not decide the matter. Taxable assets, non-taxable assets, debts and funeral expenses, deemed inheritance assets and certain lifetime gifts must be organised. Where special provisions such as the special provision for small-scale residential land reduce the tax or taxable value, a return may be required even if the tax is zero. This article summarises the basic materials and issues for heirs to organise before consulting a tax accountant. The final judgement on whether a return is required, tax valuation, application of special provisions, tax calculation, preparation of the return and tax agency work are the domain of a tax accountant. An administrative scrivener does not make tax judgements.

Not everyone needs to file an inheritance tax return — first check whether a return is required

Inheritance tax is not necessarily required to be filed by everyone who inherits a deceased person's property. Inheritance tax has a basic exemption; if the net estate calculated without using special provisions is within the basic exemption, a return is in principle not required.

On the other hand, whether a return is required is not decided simply by "how much the deposits and real estate add up to". Assets that are treated differently from the estate under civil law may be taxed, while debts and funeral expenses may be deducted. The items needed to consider whether a return is required are explained in turn below.

The basic exemption is "30 million yen plus 6 million yen per statutory heir"

The basic exemption for inheritance tax is in principle calculated as follows.

30,000,000 yen + 6,000,000 yen × the number of statutory heirs

For example, if there are three statutory heirs — a spouse and two children — the basic exemption is 30 million yen + 6 million yen × 3 = 48 million yen.

However, it cannot be said without qualification that "if the total estate is below the basic exemption, no return is always required". Whether a return is required is decided by the result after subtracting non-taxable assets and debts and funeral expenses from taxable assets, not by the total estate itself. Deemed inheritance assets and certain lifetime gifts are also relevant.

The tax-law treatment of "the number of statutory heirs"

The number of statutory heirs used to calculate the basic exemption generally corresponds to the range of heirs under the Civil Code. For the basics of the order of succession and inheritance by representation, see Statutory heirs and statutory shares.

However, the following points require attention in calculating the basic exemption.

• Even if a person has renounced the inheritance, that person is counted as a statutory heir as if the renunciation had not occurred.
• As for adopted children, in principle up to one adopted child is counted if there is a biological child, and up to two adopted children if there is no biological child.

Where adopted children or inheritance by representation are involved, or where the treatment of a renouncing person or adopted child is at issue, consult a tax accountant for the individual judgement.

Assets subject to inheritance tax

Assets subject to inheritance tax generally include the following.

• Bank deposits
• Cash
• Securities
• Land
• Buildings
• Other assets with economic value

In addition, some assets are treated differently from the estate under civil law but are taxed as deemed inheritance assets under inheritance tax. Typical examples are death insurance proceeds and death retirement benefits.

• Death insurance proceeds: certain death insurance proceeds for which the deceased paid all or part of the premiums are deemed inheritance assets for inheritance tax purposes.
• Death retirement benefits: certain retirement allowances paid because of the deceased's death, and in principle fixed within three years after death, are subject to inheritance tax.

If an heir receives them, in principle each has a non-taxable limit of 5 million yen × the number of statutory heirs. However, the non-taxable limit may not apply to a person who renounced the inheritance themselves. In calculating the number of statutory heirs for the non-taxable limit, a renouncing person is counted as if the renunciation had not occurred. Consult a tax accountant for the specific treatment.

Debts and funeral expenses are not all deductible

For inheritance tax purposes, certain debts that existed at the time of death and are certain may be deducted from the estate. Guarantee debts are in principle not necessarily deductible, so it cannot be said that "any debt can be deducted".

Certain funeral expenses may also be deductible. However, under National Tax Agency treatment, the cost of a gravestone or cemetery plot, return gifts for condolence money and memorial service costs are not included in funeral expenses. Nor can it be said that "all funeral-related expenses can be deducted".

Which debts and funeral expenses are deductible is a tax judgement. Consult a tax accountant for details.

For lifetime gifts, the addition period differs depending on the date of commencement of inheritance

Certain lifetime gifts may be added to the taxable value of the inheritance. The explanation of the addition period here concerns gifts under annual taxation. The taxation system for settlement at the time of inheritance is a separate system.

As of 2026, because transitional measures make the addition period differ depending on the date of commencement of inheritance, it cannot be said that "the addition period is now uniformly seven years".

Date of commencement of inheritance	Rough concept of the addition period
On or before 31 December 2026	In principle, three years before the commencement of inheritance
1 January 2027 to 31 December 2030	From 1 January 2024 to the date of commencement of inheritance
On or after 1 January 2031	In principle, seven years before the commencement of inheritance

Furthermore, for inheritances commencing on or after 2 January 2027, gifts added from before three years prior to the commencement of inheritance are excluded from addition up to a total of one million yen.

This article does not perform detailed calculations. Consult a tax accountant for the individual calculation and application.

Can a return be required even when the inheritance tax is zero?

"The tax is zero" and "no return is required" are not the same. The following two cases must be distinguished.

• The taxable estate does not arise without using special provisions because it is within the basic exemption.
• The taxable estate exceeds the basic exemption, but the tax becomes zero by using the spouse's tax credit or the special provision for small-scale residential land.

The spouse's tax credit requires a return even when the tax payable becomes zero. The special provision for small-scale residential land also requires the return and certain attached documents to be used.

Therefore, it cannot be said without qualification that "tax of zero means no return is required".

The deadline for filing and paying inheritance tax is in principle ten months

The deadline for filing and paying inheritance tax is in principle within ten months from the day after the heir became aware of the commencement of inheritance.

In cases where an inheritance tax return is required, it is in principle necessary to file and pay within ten months even if the estate division has not been completed. The deadline is not automatically extended. For the relationship with the other deadlines of inheritance procedures, see A guide to inheritance procedure deadlines.

When the estate division is not completed, and the treatment of special provisions

For undivided assets where the estate division has not been completed, the spouse's tax credit or the special provision for small-scale residential land may in principle not be applied at the time of the initial return.

The National Tax Agency has arrangements such as a "statement of expected division within three years after the filing deadline". However, the requirements, request for correction, deadlines and other specific tax procedures should be confirmed with a tax accountant.

What an administrative scrivener can and cannot do

An administrative scrivener does not make tax judgements.

As administrative-scrivener work, the office organises the following documents and materials.

• Collection of family registers
• Investigation of heirs
• Organisation of the inheritance relationship
• Investigation of the estate
• Preparation of an inventory of assets
• Preparation of an estate division agreement based on agreed content
• Wills and other document work

The office can organise materials concerning the heirs and estate for delivery to a tax accountant. However, Yotsuba Administrative Scrivener Office does not provide tax consultation on individual filing requirements, inheritance tax valuation, application of special provisions or the amount of tax. An administrative scrivener does not make tax judgements such as "this person does not need to file", "the inheritance tax value of this real estate is X yen", "this special provision can be used" or "the inheritance tax is X yen".

For the investigation of heirs and family register collection, see Where to start with an inheritance?; for estate investigation, see Investigating the inherited estate and preparing an inventory of assets; and for an estate division agreement, see Can you prepare an estate division agreement yourself?.

How the work of specialists is divided

Inheritance tax, tax valuation and filing are the domain of a tax accountant; inheritance registration is a judicial scrivener; disputes over parentage, the legally reserved portion and disputes among heirs are an attorney; and the appraisal and brokerage of real estate are Yotsuba Real Estate Co., Ltd.

An individual may prepare and file their own inheritance tax return. On the other hand, tax consultation, preparation of tax documents and tax agency work performed for another person are the work of a tax accountant.

Yotsuba Real Estate Co., Ltd. handles its work under a separate business and separate contract from Yotsuba Administrative Scrivener Office. Our office receives no referral fee.

Use the National Tax Agency's "Inheritance tax filing requirement check corner"

The National Tax Agency has an "Inheritance tax filing requirement check corner" where you can enter the inherited assets and other information to check roughly whether an inheritance tax return is required.

However, this corner determines only the approximate requirement and does not prepare an inheritance tax return. For complex cases, consult a tax accountant.

How to proceed with inheritance procedures in Bunkyo

Yotsuba Administrative Scrivener Office (Kohinata, Bunkyo, about five minutes' walk from Myogadani Station) guides you in stages through family register collection and heir investigation, estate investigation and preparation of an inventory of assets, an estate division agreement and the drafting of a will. For the flow of engagement, see Engagement Flow; for fees, see Fee Schedule; and for the whole picture, see Inheritance, Wills and Trusts.

For the sale and management of inherited real estate, see Complete Guide to Inherited Real Estate (Yotsuba Real Estate). Yotsuba Real Estate Co., Ltd. handles its work under a separate business and separate contract from Yotsuba Administrative Scrivener Office.

FAQ

Q. If the estate is below the basic exemption, is an inheritance tax return unnecessary?
A. Whether the estate is below the basic exemption must be confirmed by organising the taxable assets, non-taxable assets, debts and funeral expenses, deemed inheritance assets and certain lifetime gifts, not by the total estate alone. It cannot be said without qualification that "if the total estate is below the basic exemption, no return is always required". Consult a tax accountant for the final judgement.

Q. Is a person who renounced the inheritance counted in the number of statutory heirs for the basic exemption?
A. In calculating the basic exemption, even if a person renounced the inheritance, that person is counted as a statutory heir as if the renunciation had not occurred. Where adopted children are involved, the treatment may differ, so consult a tax accountant for the specific judgement.

Q. Are life insurance proceeds also subject to inheritance tax?
A. Certain death insurance proceeds for which the deceased paid all or part of the premiums may be taxed as deemed inheritance assets, even though they are treated differently from the estate under civil law. If an heir receives them, in principle there is a non-taxable limit of "5 million yen × the number of statutory heirs". Consult a tax accountant for the individual treatment.

Q. If the spouse's inheritance tax is zero, is no return required?
A. Even when the spouse's tax credit makes the tax payable zero, a return is required. The special provision for small-scale residential land also requires the return and certain attached documents to be used. "Tax of zero = no return required" is not always correct.

Q. What should be done if the estate division is not completed within ten months?
A. In cases where an inheritance tax return is required, it is in principle necessary to file and pay within ten months even if the estate division has not been completed. Consult a tax accountant about the method of filing and treatment of special provisions when there are undivided assets.

Sources (Primary Information)

• National Tax Agency, "No.4102 Cases in which inheritance tax is imposed"
• National Tax Agency, "No.4152 Calculation of inheritance tax"
• National Tax Agency, "No.4114 Death insurance proceeds subject to inheritance tax"
• National Tax Agency, "No.4117 Death retirement benefits subject to inheritance tax"
• National Tax Agency, "No.4126 Debts deductible from the inherited property"
• National Tax Agency, "No.4129 Funeral expenses deductible from the inherited property"
• National Tax Agency, "No.4158 Spouse's tax credit"
• National Tax Agency, "No.4124 Special provision for small-scale residential land"
• National Tax Agency, "No.4161 Addition of gift property and tax credit"
• National Tax Agency, "No.4208 Filing when the inherited property has not been divided"
• National Tax Agency, "Inheritance tax filing requirement check corner"

This article is general information and does not guarantee individual inheritance tax filing requirements, tax valuation, application of special provisions, tax calculation or preparation of the return. Inheritance tax, tax valuation and filing are handled by a tax accountant; inheritance registration by a judicial scrivener; disputes over parentage, the legally reserved portion and disputes among heirs by an attorney; and real estate appraisal and brokerage by Yotsuba Real Estate Co., Ltd., each as an independent business under a separate contract. Our office receives no referral fee. Individual judgements are made by a qualified professional after a meeting. Written by Joji Uramatsu, administrative scrivener and licensed real estate broker.