Changes in Japan often take effect in April, as the month marks the beginning of the country’s new fiscal year. During this period, updates to rules affecting daily life and personal finances are common. In April 2026, several revisions to the social insurance system and tax regulations are scheduled, directly impacting residents across Japan.
In this article, Lili Katoh, a Certified Financial Planner (CFP®) explains the key financial changes in Japan for 2026 in clear and practical terms, helping foreign residents understand how these updates may affect their everyday lives.
About the Supervisor & Writer
Lili Katoh
Certified Financial Planner®
Founder of Money Step Office Inc.
Lili Katoh specializes in insurance, life planning, and asset management. She is a Health Management Expert Advisor and author of “Setai Nenshū 1000 Man En” and “Gattsuri Tamaru Chokin Recipe”. Born in California, USA, she brings international insight to Japanese financial planning.
Table of Contents
Chapter 1: Government Electricity and Gas Subsidies End
One of the major changes in Japan in April 2026 is the end of the government’s temporary electricity and gas subsidy program. The national “Electricity and Gas Price Support Measures,” which had been in place from January through March, will no longer apply. As a result, even if household usage remains the same, utility bills from April onward will be higher compared to March.
The subsidy program was introduced as part of the government’s broader response to rising living costs. During the cold winter months, when electricity and gas usage typically increases due to air conditioners, heaters, and stoves, the program aimed to reduce the financial burden on households.
For electricity and gas used in January and February 2026, households received:
¥4.5 per kWh discount on electricity
¥18 per cubic meter discount on city gas
For March 2026 usage, the discount was reduced to:
¥1.5 per kWh for electricity
¥6 per cubic meter for city gas
For example, under a standard household plan with Tokyo Electric Power Company (TEPCO) and average monthly usage of 260 kWh, the March electricity bill (issued in April) totaled ¥8,319 after a government discount of ¥390. However, no subsidy will apply to electricity used from April onward, meaning bills will increase accordingly.
Foreign residents in Japan should be aware that this is not a price hike by utility companies, but rather the expiration of a temporary government subsidy — an important distinction when reviewing monthly expenses.
Chapter 2: Introduction of “Blue Ticket” Fines for Bicycles
Another major changes in Japan taking effect in April 2026 is the introduction of monetary penalties for certain bicycle traffic violations.
Following revisions to the Road Traffic Act, cyclists who commit serious traffic offenses will now be subject to fines under a system known as the “blue ticket” (ao-kippu) system. Under this framework, offenders can avoid criminal prosecution by paying a designated penalty. Previously, this system applied only to automobiles and motorized scooters, but from April 2026, bicycles will also be included.
A total of 113 traffic violations committed while riding a bicycle will fall under the blue ticket system. These include:
Running a red light
Failing to stop at a stop sign
Riding on the right side of the road
Using a mobile phone while riding
Riding while holding an umbrella
The amount of the fine depends on the specific violation and generally ranges from several thousand yen up to ¥12,000. Examples include:
Using a mobile phone while riding (holding the device): ¥12,000
Speeding: ¥6,000–¥12,000 (depending on the degree of excess speed)
Running a red light: ¥6,000 (¥5,000 for flashing signal violations)
Improper lane usage (such as riding on the right side or illegally on sidewalks): ¥6,000
Riding without lights at night: ¥5,000
For foreign residents in Japan, it is important to understand that bicycles are legally treated as vehicles. Enforcement is expected to become stricter after April 2026, and even common behaviors that may have been overlooked in the past could now result in fines.
Source: National Police Agency of Japan
Chapter 3: Introduction of the Child and Parenting Support Contribution
Another important changes in Japan starting in April 2026 is the introduction of a new “Child and Parenting Support Contribution” for individuals enrolled in Japan’s public health insurance system. The measure is part of a broader effort to expand national childcare and family support programs.
Beginning in April 2026, insured individuals will pay this contribution together with their regular health insurance premiums. For employees enrolled in employer-based health insurance plans (such as corporate health insurance associations), the average additional burden is expected to be approximately ¥550 per month per insured person. However, the actual amount varies depending on the type of health insurance plan and annual income.
For example:
An employee enrolled in a corporate health insurance plan with an annual income of ¥8 million is expected to pay approximately ¥767 per month.
At an annual income of ¥10 million, the contribution is estimated at approximately ¥999 per month.
The contribution amount is also scheduled to be reviewed each fiscal year from 2027 onward, meaning the monthly burden may change in the future.
According to the Children and Families Agency of Japan, measures to reduce overall social insurance premium burdens will be implemented alongside the introduction of this system. As a result, the government states that the net financial impact on households is expected to be neutral.
Chapter 4: My Number Health Insurance Card Becomes the Standard
Another important changes in Japan from April 2026 concerns how patients access medical care. The “My Number Health Insurance Card” will become the standard method of verifying health insurance at hospitals and pharmacies.
The My Number Health Insurance Card is not a separate card. Instead, it is a system that links health insurance information to the individual’s My Number Card. The government has been gradually promoting the transition from traditional physical health insurance cards to this integrated system.
Until March 2026, the use of conventional health insurance cards was temporarily permitted during the transition period. However, starting in April 2026, patients will generally need one of the following to receive medical treatment:
A My Number Health Insurance Card (My Number Card with insurance function activated), or
A “Health Insurance Eligibility Certificate” issued to individuals who do not possess a My Number Card.
In other words, the traditional standalone health insurance card will no longer be the primary form of identification at medical institutions.
Chapter 5: Increase in Hospital Meal Co-Payments
Another financial changes in Japan taking effect in April 2026 is an increase in the co-payment for meals provided during hospital stays.
Under Japan’s public health insurance system, patients admitted to hospital are required to pay a fixed out-of-pocket amount for meals, known as the “Hospital Meal Standard Charge.” This system ensures that meal costs remain partially subsidized and predictable, even during extended hospitalizations.
For individuals with standard income levels, the co-payment for the 2025 fiscal year is ¥510 per meal. However, following revisions to the national medical fee schedule, the amount is expected to increase by ¥40 per meal starting in April 2026.
Although the increase may appear modest, it can add up during longer hospital stays. Foreign residents enrolled in Japan’s public health insurance system should therefore be aware of this adjustment as part of the broader financial changes in Japan for the 2026 fiscal year.
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Chapter 6: Heated Tobacco Prices to Rise Due to Tobacco Tax Reform
Among the cost-related changes in Japan taking effect in April 2026 is a price increase for certain heated tobacco products due to revisions in the tobacco tax system.
As part of broader tax reforms, the government is revising how tobacco taxes are calculated for heated tobacco products. Previously, these products were converted into an equivalent number of conventional cigarettes under a specific formula. Under the new system, heated tobacco products will be divided into two categories:
Stick-type heated tobacco products
Non-stick-type heated tobacco products
After the reform, taxation will be calculated differently for each type. Stick-type products will be taxed based on the weight per individual stick, while non-stick-type products will be taxed based on the total weight per package, with minimum taxation standards applied.
As a result of this change in the taxation method, major tobacco manufacturers are expected to raise prices by approximately ¥40 to ¥50 per pack.
Additional tobacco tax adjustments are also scheduled for October 2026 and from 2027 onward, meaning further price increases may follow.
Source: National Tax Agency
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Chapter 7: Integration of Residence Card and My Number Card (From June 2026)
Among the important administrative changes in Japan in 2026 is the integration of the Residence Card and the My Number Card into a single document known as the “Specified Residence Card.” The new system is scheduled to begin in June 2026.
Currently, the Residence Card (or Special Permanent Resident Certificate) and the My Number Card serve as separate forms of identification. As a result, procedures such as address changes and renewals must be completed at different administrative offices. Immigration-related procedures are handled at Regional Immigration Services Bureaus, while My Number Card updates are processed at municipal offices.
Following amendments to the relevant laws, these procedures will be consolidated. When eligible residents receive the new “Specified Residence Card” at a Regional Immigration Services Bureau, the latest My Number information will be recorded directly on the card. In principle, this eliminates the need to visit a separate city or ward office to update My Number information.
The Specified Residence Card will be available to mid- to long-term residents and special permanent residents who are registered in Japan’s Basic Resident Register.
According to the official schedule, the new system will begin operating on June 14, 2026, with applications for issuance expected to be accepted at Regional Immigration Services Bureaus starting from the following business day, June 15, 2026.
Source: Immigration Services Agency
Chapter 8: Common Mistakes About the Changes in Japan
As several important changes in Japan begin in April 2026, there are some common misunderstandings. Here are the key points explained in simple terms.
Mistake 1: Only parents will pay the Child and Parenting Support Contribution.
Correct information:
This contribution is not limited to people who have children.
Anyone enrolled in Japan’s public health insurance system will be required to pay it. This includes:
Single individuals
People whose children are already adults
Elderly residents
The system is designed as part of Japan’s national social security framework, and the cost is shared broadly among insured members.
Mistake 2: If the My Number Health Insurance Card becomes the “standard,” people without a My Number Card cannot receive medical treatment.
Correct information:
Use of the My Number Health Insurance Card is optional.
If you do not have a My Number Card, or if you have not registered it for health insurance use, you will be issued a Health Insurance Eligibility Certificate.
By presenting this certificate at a hospital or clinic, you can continue to receive insured medical treatment as before.
Official guidance is available from the Digital Agency of Japan.
Mistake 3: Tourists can receive the new Specified Residence Card.
Correct information:
The Specified Residence Card is available only to:
Mid- to long-term residents
Special permanent residents
Foreign nationals staying in Japan on a short-term visa, such as a tourist visa, are not eligible.
Chapter9: Frequently Asked Questions (FAQ)
As a Certified Financial Planner, many questions have been received about the changes coming to Japan from April 2026. The most common questions and clear, practical answers are summarized below.
Read the full FAQ from the button below—follow on Substack and join the community.
Q1. When the electricity and gas subsidies end, how much will our household costs increase?
Q2. Does the bicycle “Blue Ticket” system apply to foreign residents as well?
Q3. When will the Child and Parenting Support Contribution be deducted from salary? Where will it appear on my payslip?
Q4. Do foreign residents have to pay the Child and Parenting Support Contribution?
Q5. Is switching to the new Specified Residence Card mandatory?
Chapter10: Summary
In April 2026, several important changes in Japan will affect household finances. Government support for electricity and gas bills will end, and the new Child and Parenting Support Contribution will begin. As a result, many families may see an increase in their monthly expenses.
There will also be changes to everyday rules. The bicycle “Blue Ticket” system will start, and the My Number Health Insurance Card will become the standard way to confirm insurance at hospitals and clinics.
It is important to check these changes in advance so you can prepare and avoid surprises. Understanding how these changes in Japan affect your situation will help you manage your money and daily life more smoothly.
In June 2026, the new Specified Residence Card system will also begin. This is expected to make procedures such as address changes and renewals easier for eligible foreign residents. Be sure to review this update as well.
* This article is provided for general informational purposes only and does not constitute individual financial, tax, or legal advice. While reviewed by a certified financial planner, readers are encouraged to consult their own advisors before making decisions. Belonging JAPAN is not affiliated with or endorsed by any financial institution mentioned. Information such as fees and regulations is accurate as of March 2026 but may change; please verify details with official sources.
