Public Housing Income Calculation Revised for Single-Parent Deduction
Overview
Following amendments to the Income Tax Act, the Cabinet approved a Cabinet Order revising the single-parent deduction under the Public Housing Act Enforcement Order to 380,000 yen, matching the amount under the Income Tax Act. The revised calculation will apply to rent assessments and income calculations for public housing applications conducted on or after July 1, 2028. The Order is scheduled to be promulgated on November 11, 2026, and to take effect on January 1, 2028.
Key points
- The Cabinet approved the Cabinet Order Amending Part of the Public Housing Act Enforcement Order.
- The single-parent deduction will increase from 350,000 yen to 380,000 yen, and the Public Housing Act Enforcement Order will also set it at 380,000 yen.
- The revised income calculation will apply on or after July 1, 2028.
- The Order will be promulgated on November 11, 2026, and take effect on January 1, 2028.
Overview
Eligibility for public housing and rent are set according to residents' income. Income is calculated under the Public Housing Act Enforcement Order, with reference to the approach to income deductions under the Income Tax Act.
Under the FY2026 tax reform, the income tax single-parent deduction increased from 350,000 yen to 380,000 yen, and the amended Income Tax Act applies to income earned in 2027 and thereafter.
Details
The amendment sets the single-parent deduction under the Public Housing Act Enforcement Order at 380,000 yen, the same amount as under the Income Tax Act.
The revised provisions apply to income calculations used as the basis for rent assessments and related matters that are conducted on or after July 1, 2028; calculations conducted before then will follow the previous rules.
For income calculations related to resident eligibility, the revised provisions apply to applicants for public housing recruitment rounds that begin on or after July 1, 2028, and to applicants on or after that date when a specified circumstance applies. Applications made before then will follow the previous rules.
The Cabinet Order will be promulgated on November 11, 2026, and take effect on January 1, 2028.