Only 25.9% fully understand the new ¥750,000 blue-return deduction, survey finds
A freee survey of 2,000 sole proprietors and side-job workers found that about 70% know of the legal change raising the blue-return special deduction to up to ¥750,000, but only 25.9% understand the requirements in detail. 64.7% are unsure whether they qualify, so preparation is the real challenge for small business owners.
Key points
- About 67% know the system, but only 25.9% understand the requirements in detail, and 33.1% had never heard of it
- 62.1% want to apply (16.6% definitely, 45.5% if possible); the top hurdle is the complexity of procedures and fear of mistakes (866 responses)
- 26.4% of salaried workers with side jobs had never heard of it versus 40.6% of sole proprietors and freelancers, a 14.2-point gap
Background
Under the legal change, the blue-return special deduction rises from the current maximum of ¥650,000 to a maximum of ¥750,000 for filers who meet certain requirements. Because ¥100,000 more can be deducted from income, taxable income can be lower.
The survey was run by freee, an accounting software provider, as a web questionnaire from September 14 to 16, 2026. It covered 2,000 people planning to file 2026 returns (1,064 salaried workers with side jobs and 936 sole proprietors/freelancers). Respondents are limited to planned filers and the survey comes from a vendor of related services, so the results should be read with that in mind.
What it means for shops
For owners who run a shop or small business as individuals, a higher deduction is a chance to reduce tax, but it may require checking requirements and preparing bookkeeping and filing methods. With 40% of sole proprietors unaware, the survey points to a risk of reaching filing season without enough information.
What shops should do
- Check the National Tax Agency's official pages for the requirements and start timing of the ¥750,000 deduction
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Summaries are written by Seiichi Studio based on the original releases. Always check the source for the exact details.