Japan Depreciation Calculator (Straight-Line, 200% Declining Balance)
Enter the acquisition cost and useful life to get a yearly schedule of depreciation and book value under straight-line or the 200% declining balance method (assets acquired on or after April 1, 2012). It handles monthly proration for mid-year purchases, the switch from the guaranteed amount to the revised rate, and the small-asset checks (under ¥100,000, under ¥200,000, and the SME special rule, now under ¥400,000 for assets acquired from April 1, 2026). This is an estimate under the 2026 rules. For consumption tax on the purchase, use the Consumption Tax & Discount Calculator; for stamp duty, see the Stamp Duty Calculator.
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These results are rough estimates based on the 2026 rules and are not legal or tax advice. Please confirm the useful life and depreciation method for your actual assets with the tax office or a tax accountant.
Basis: 2026 rules. Rates follow the National Tax Agency depreciation rate table (straight-line and 200% declining balance for assets acquired on or after April 1, 2012); useful lives follow the Ministry of Finance ordinance tables.
Asset details
Use the tax-exclusive amount if you account excluding consumption tax, or the tax-inclusive amount if you account including it. Include freight, installation and fees needed to put the asset to use.
2 to 50 years. Choosing an asset type fills this in. Choose Other to type your own.
Declining balance works for useful lives of 2 to 20 years. Buildings acquired on or after April 1, 1998 use straight-line only.
Months from the month you started using the asset to the end of the fiscal year. Use 12 for a full year, or 2 if you started the month before year end.
Used only for the Year column in the table. It does not change the result.
Small-asset check
Used with the cost to decide which treatments are available. The SME rule needs both the acquisition and the start of use to fall in the period, so one date is used for both.
Check this if you are an SME (capital of ¥100 million or less, for example; 400 or fewer regular employees for assets acquired from April 1, 2026, 500 or fewer before) filing a blue return, to test the SME special rule.
Rate table (assets acquired on or after April 1, 2012)
| Useful life | Straight-line rate | Declining rate | Revised rate | Guarantee rate |
|---|---|---|---|---|
| 2 | 0.500 | 1.000 | - | - |
| 3 | 0.334 | 0.667 | 1.000 | 0.11089 |
| 4 | 0.250 | 0.500 | 1.000 | 0.12499 |
| 5 | 0.200 | 0.400 | 0.500 | 0.10800 |
| 6 | 0.167 | 0.333 | 0.334 | 0.09911 |
| 7 | 0.143 | 0.286 | 0.334 | 0.08680 |
| 8 | 0.125 | 0.250 | 0.334 | 0.07909 |
| 9 | 0.112 | 0.222 | 0.250 | 0.07126 |
| 10 | 0.100 | 0.200 | 0.250 | 0.06552 |
| 11 | 0.091 | 0.182 | 0.200 | 0.05992 |
| 12 | 0.084 | 0.167 | 0.200 | 0.05566 |
| 13 | 0.077 | 0.154 | 0.167 | 0.05180 |
| 14 | 0.072 | 0.143 | 0.167 | 0.04854 |
| 15 | 0.067 | 0.133 | 0.143 | 0.04565 |
| 16 | 0.063 | 0.125 | 0.143 | 0.04294 |
| 17 | 0.059 | 0.118 | 0.125 | 0.04038 |
| 18 | 0.056 | 0.111 | 0.112 | 0.03884 |
| 19 | 0.053 | 0.105 | 0.112 | 0.03693 |
| 20 | 0.050 | 0.100 | 0.112 | 0.03486 |
Notes
- This is an estimate under the 2026 rules. The rates match the National Tax Agency depreciation rate table (straight-line and 200% declining balance) for assets acquired on or after April 1, 2012. Tax reform or ordinance changes can alter them.
- Straight-line depreciates cost x rate each year and stops at the last year, leaving ¥1 as the memorandum value. The rate is 1 divided by the useful life, rounded up at the fourth decimal place.
- The 200% declining balance method depreciates opening book value x rate (2 divided by the useful life). From the first year in which that amount falls below the guaranteed amount (cost x guarantee rate), it depreciates the same amount every year: the opening book value at that point times the revised rate. The last year leaves ¥1.
- For a mid-year purchase, only the first year is prorated by months / 12. Later years use a full year. Amounts are rounded down to the yen.
- Not covered: the 250% and old 200% declining balance methods for assets acquired before April 2012 (this table is for April 1, 2012 or later), pre-2007 methods, intangible, leased and used assets, special depreciation, deferred gains, and the gap between the corporate-tax limit and the amount actually booked.
- The small-asset check tests under ¥100,000 (expense in full), ¥100,000 to under ¥200,000 (lump-sum over three years), and the SME special rule (under ¥300,000 for assets acquired by March 31, 2026; under ¥400,000 for assets acquired and used from April 1, 2026 to March 31, 2029). Assets used for leasing and similar can be excluded.
- The 2026 tax reform raised the SME special rule to under ¥400,000 for assets acquired on or after April 1, 2026, extended it to March 31, 2029, and lowered the employee limit to 400 or fewer (previously 500). The ¥3 million annual cap is unchanged. You need a blue return, both the acquisition and the start of use must fall in the period, and leased assets are excluded. Confirm the current rule with the National Tax Agency or a tax accountant.
- Useful lives depend on the asset type, use and structure. For assets not in the list, look up the National Tax Agency useful life table and choose Other. This is not legal or tax advice.
Glossary
Straight-line method
Depreciates the same amount (cost x rate) every year over the useful life. The yearly expense is constant and easy to calculate.
200% declining balance
Applies a rate twice the straight-line rate to the remaining book value, so depreciation is larger early on and shrinks each year. Used for assets acquired on or after April 1, 2012.
Guaranteed amount and revised rate
A safeguard so declining balance depreciation does not become too small. Once the yearly amount falls below the guaranteed amount (cost x guarantee rate), depreciation continues at the book value at that point times the revised rate.
Memorandum value
The ¥1 left on the books after depreciation ends, to record that the asset still exists. It applies to assets acquired on or after April 1, 2007.
Lump-sum depreciable assets
Assets costing from ¥100,000 up to under ¥200,000 that you pool and expense evenly over three years, without monthly proration.
SME special rule for small assets
A special rule that lets blue-return SMEs expense assets under a set amount in the year of purchase. The limit is under ¥400,000 (¥300,000 for assets acquired by March 31, 2026), with a ¥3 million annual cap, for assets acquired by March 31, 2029. Check the National Tax Agency for current conditions.
FAQ
Should I choose straight-line or declining balance?
Sole proprietors use straight-line unless they file a notice. Corporations default to declining balance for assets other than buildings, building fixtures and structures acquired from April 2016 (as of 2026). Declining balance expenses more in the early years, while straight-line gives the same amount every year. Buildings acquired on or after April 1, 1998 use straight-line only. Confirm the choice with the tax office or a tax accountant.
What are the guaranteed amount and the revised rate for?
With 200% declining balance, depreciation shrinks every year, so a guaranteed amount (cost x guarantee rate) prevents it from becoming too small. Once the yearly amount falls below it, the asset is depreciated by the same amount every year: the opening book value at that point times the revised rate, leaving ¥1 at the end.
How is a mid-year purchase prorated?
Enter the number of months from the month you started using the asset to the end of the fiscal year. First-year depreciation is the full-year amount x months / 12, rounded down to the yen. For example, starting in September with a March year end is 7 months. From the second year the full amount applies, and the schedule runs one year longer.
What is the difference between ¥100,000, ¥200,000 and ¥400,000?
Under ¥100,000 is a small asset that can be expensed in full in the year of use. From ¥100,000 to under ¥200,000 you can choose the lump-sum method and expense it evenly over three years. Blue-return SMEs with 400 or fewer employees can expense assets under ¥400,000 up to ¥3 million a year if acquired and used between April 1, 2026 and March 31, 2029 (before that, the limit was ¥300,000 with 500 or fewer employees). Both dates must fall in the period. Check the latest National Tax Agency guidance.
What if my asset is not in the list?
The list covers common assets only. Look up the useful life in the National Tax Agency table and choose Other to enter it. Straight-line supports 2 to 50 years and declining balance supports 2 to 20 years. Special cases for used, intangible and leased assets are not covered.
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