Company Housing Cost Simulator

How to use this tool

Select employee or director housing and enter the floor area, fixed asset tax bases, rent paid by the company and rent collected from the occupant. Adjust the assumptions to compare scenarios. Taxable rental value and housing benefits for social insurance are shown separately.

Entered figures are calculated in your browser. Results are planning estimates. Confirm your specific policy, payroll and tax treatment with qualified tax and social insurance advisers.

Tax and social insurance assumptions

Basis checked 28 September 2026. Default premiums use FY2026 Kyokai Kenpo Tokyo: health 9.85%, nursing care 1.62% where applicable, and child and childcare support 0.23%. Change the rates for your insurer. The housing in-kind valuation switches on 1 October 2026 from living-space tatami units to total floor area in square metres; select the relevant period.

• Deemed rent follows Income Tax Basic Circular 36-40 to 36-48 and National Tax Agency Tax Answers No.2597 (employees) and No.2600 (directors), rounded down to the yen.
• For employees, no tax arises if the occupant pays at least 50% of the deemed rent. Below 50%, the entire difference between the deemed rent and the amount paid is taxable salary. Directors have no 50% threshold: any shortfall against the deemed rent is taxable.
• The social insurance in-kind value uses the prefectural rates set by the Minister of Health, Labour and Welfare (notice revised March 2026). Any rent paid by the occupant is deducted before adding the value to remuneration. Corporate health insurance societies may set their own values.
• Housing provided in kind is treated as outside wages for employment insurance, unless the company pays a housing allowance to employees who are not provided company housing for parity. Workers accident insurance is not included.
• Standard monthly remuneration uses 50 health insurance grades (cap ¥1.39M) and 32 pension grades (cap ¥650,000). Bonuses and the timing of revisions are ignored. Higher pension premiums increase future pension benefits, which is not reflected here.
• For directors, a benefit that is broadly constant each month is generally treated as fixed periodic compensation (teiki dogaku kyuyo). Paying a housing allowance as director compensation must meet the timing requirements for fixed periodic compensation.
• Income and inhabitant tax are estimated at marginal rates. Inhabitant tax is levied in the following year.
• Inputs are used only for calculation in your browser and are never collected, stored, or shared by Edo Partners.
• This tool provides estimates based on general rules and is not tax advice for any specific case. Confirm with your tax accountant and labor and social security attorney before applying it.

国税庁 No.2597 / Employees · 国税庁 No.2600 / Directors · 協会けんぽ東京 / FY2026 premiums · 日本年金機構 / 2026 in-kind valuation