How can you reduce your National Health Insurance premiums?
If you are a National Health Insurance subscriber, you know that the premiums are quite high.
If your income is not so high, National Health Insurance premiums can be surprisingly high compared to income tax and inhabitant tax.

The calculation of this year’s premiums is based on your overall household income (= income – expenses) last year.
Therefore, if your income this year is lower than last year, this premium will be a substantial burden.

In such a case, there is a system to reduce this year’s premium by applying to the municipality.
Let me explain about it.
First, I will explain the calculation method of National Health Insurance premiums.

The calculation method of the National Health Insurance premiums is left to each municipality, and there are slight differences between municipalities even if the income is the same.
Due to the recent increase in medical expenses and tight national and local finances, the premiums are expected to increase every year.


The calculation of national health insurance premiums is the sum of the following two premiums.

(1) Equal portion（均等割 KINTO-WARI）
➡ Number of members in the household × fixed amount

(2) Income Portion (所得割 SHOTOKU-WARI）
➡ Total income of all members of the household in the last year× fixed percentage×

If your income is expected to decrease significantly this year compared to last year, you should apply to your local municipality for a reduction in your National Health Insurance premiums, which are a heavy burden.

The conditions for the reduction vary from municipality to municipality.
Here is a partial explanation of Nagoya City’s system.
A. If all of the following three conditions are met
(1) The total income of all household members last year was 10 million yen or less.
(2) The total expected income of all household members this year is 2.74 million yen or less.
(3) The total expected income of all household members this year is 20% or more less than that of the previous year.
➡ 30% to 70% reduction in the income portion of premiums

B. If the total expected income of all members of your household for this year is in deficit due to the suspension or discontinuation of business
➡ 70% reduction of the full amount of premiums

C. If the total income of all members of your household last year is less than 「660,000 + 350,000 x number of insured persons」
➡ 20% reduction of the equal portion of premiums

＊In the above,” income” is the amount remaining after deducting expenses from income
＊In addition to the above, there are cases where a reduction in premiums may be available under certain conditions.

If you are a resident of Nagoya and your income is about to decrease by 20% or more compared to the previous year, why don’t you consult with your municipal office?

Your municipality should have such a system for reducing national health insurance premiums.

If you do not apply for it yourself, you will not be eligible for this system.

If you think you meet the above requirements, you should consult with the National Health Insurance department in your municipality anyway!
Ask the person in charge at the municipal office for advice on which application is best in your case.

In doing so, please note the following
(1) The period for applying for the reduction is from the time you receive the notice of payment of this year’s premiums in June to the end of the last payment month of the year (usually the end of March of the following year).

(2) When making this application, you may be required to calculate your expected income for the current year on a reasonable basis.
＊If you are a sole proprietor, you will need to show your monthly income and expenses from January of this year to the month before the month of application, so please bring your books of account with you for consultation.
＊If you are a salaried employee, please bring your pay stubs from January of this year to the month prior to the month of application for consultation.

I am a tax accountant in Nagoya.
If you need help with accounting or taxation issues, please contact me.

Certified Tax accountant　 Motohiko Aoyama
e₋mail: bemyself8314@gmail.com