[Inheritance Tax Awareness Survey] The Era of "1 in 10 People" Paying Inheritance Tax -- Yet 69.7% Say "It Doesn't Apply to Me / I Don't Know," and 90.3% Don't Know the Threshold

Inheritance Tax Reality Survey (PR media Inc.)

"Inheritance tax is something for the wealthy." -- Do you think so? However, with the revision in 2015, the scope of taxation has greatly expanded, and inheritance tax is no longer something that "happens to others."

To what extent can the next generation be aware that their own family might be subject to it?

PR media Inc. ( https://prmedia.co.jp/ ), which operates an information media outlet focused on inheritance, conducted a survey targeting 300 men and women nationwide aged 30 to 69 to clarify the awareness and self-perception of inheritance tax among the child-rearing generation.

The survey asked about awareness of the threshold for inheritance tax, understanding of the basic exemption, whether they believe their family will be subject to it, and whether they have taken any measures.

The results of this survey revealed that 69.7% of respondents believe "inheritance tax does not apply to my family / I don't know." Furthermore, 90.3% do not know the threshold for inheritance tax, and only 17.3% correctly understand the basic exemption.

Even though inheritance tax has become relevant to ordinary households, the survey highlights that many people are complacent, believing "it doesn't apply to me."

[Main Findings of This Survey]

* "Inheritance tax does not apply to my family / I don't know": 69.7% * 90.3% do not know the "threshold" for inheritance tax. * Only 17.3% correctly understand the "basic exemption." * Even among those who think inheritance tax "will apply," only 1 in 10 have taken measures. * Top areas of interest are "tax saving (real estate/life insurance)" and "asset visualization."

* For details on the survey methodology and participants, please refer to the "Survey Implementation Overview" below.

▼ The original article regarding this survey is published on our media outlet.

https://prmedia.co.jp/media/inheritance-tax-awareness/

Main Survey Results

1. The Era of "1 in 10 People" Paying Inheritance Tax -- Yet 69.7% Say "It Doesn't Apply to Me / I Don't Know"

First, how does the child-rearing generation perceive whether their own family will be subject to inheritance tax? We asked them if they thought inheritance tax would apply in the future from their parents' inheritance.

[Figure 1] 69.7% believe "inheritance tax does not apply to my family / I don't know" (30.3% think it will apply) (n=300)

Only 30.3% answered that they thought it would apply, while 69.7% believed "it does not apply (34.3%)" or "I don't know (35.3%)," indicating that 69.7% believe they are not subject to it or are unsure.

However, with the basic exemption being reduced by 40% in the 2015 revision, the number of people subject to taxation has approximately doubled compared to before. Currently, about 9-10% of deceased individuals, or about 1 in 10 people, are subject to inheritance tax (National Tax Agency "Overview of Inheritance Tax Filing Cases").

Despite it no longer being "just for the wealthy," many people perceive it as "not applicable to me" -- a significant gap exists between societal reality and individual awareness. Furthermore, the proportion of women (36.1%) who answered "I think it will apply" was higher than that of men (27.1%).

2. 90.3% Don't Even Know "From What Amount" Inheritance Tax Applies

Why do so many people believe "it doesn't apply to me"? The lack of basic knowledge is a contributing factor. We asked if they knew the "threshold (guideline)" for when inheritance tax applies.

[Figure 2] 90.3% "do not know" the guideline for inheritance tax (only 9.7% know accurately) (n=300)

Only 9.7% answered that they "know the approximate amount accurately." Combining "I don't know at all (53.0%)" and "I've vaguely heard of it (37.3%)," 90.3% do not know the guideline.

About 1 in 10 people grasp it accurately.

If one doesn't know the starting point of how much property is taxed, it's impossible to determine "whether one's own family is subject to it."

The assumption of "it doesn't apply to me" seems to stem from this lack of basic knowledge.

3. Only 17.3% Correctly Understand the "Basic Exemption" -- Less Than 20%

Whether inheritance tax applies is determined by whether the non-taxable threshold called the "basic exemption" is exceeded. How well is this basic exemption understood?

[Figure 3] Only 17.3% correctly understand the "basic exemption" for inheritance tax (n=300)

Only 17.3% answered that they "understand both the term and the content (calculation method)." Combining "I've heard the term but don't understand the content (60.7%)" and "I don't know the term itself (22.0%)," 82.7% do not understand it correctly.

The basic exemption is calculated as "30 million yen + 6 million yen x number of statutory heirs." For example, if there are two heirs, it's 42 million yen. In addition to savings, if there is real estate (family home), it is not uncommon for ordinary households to exceed this threshold.

The reality is that the most crucial rule determining taxability is known by very few.

4. Even Among Those Who Think It "Will Apply," Only 1 in 10 Took Measures -- Unable to Act Even When Aware

So, how many people are actually taking action regarding inheritance tax? We asked if they had ever researched or taken measures.

[Figure 4] Even among those who think inheritance tax "will apply," only 1 in 10 (10 out of 91 people) have taken measures (n=300)

"I haven't done anything in particular" accounted for 72.0%, while "I have researched it (23.7%)" and "I have taken specific measures/consulted (4.3%)" were very few.

It's noteworthy that even when narrowing down to those who answered "I think it will apply" (91 people), only 10 people -- about 1 in 10 -- had taken specific measures.

More than half, 53.8%, responded "I haven't done anything in particular."

It's natural that those who don't know won't act, but even those who recognize "I will be subject to it" are not acting. This reveals a double gap between recognition and action.

Inheritance happens suddenly. If one postpones it even after realizing they might be subject to it, they might find themselves scrambling to deal with it when "that time" arrives.

5. Difficulties Include "Calculation, Procedures, Real Estate Appraisal, and Where to Consult" -- Interest Lies in "Tax Saving" and "Visualization"

Regarding inheritance tax, what are the difficulties faced by the child-rearing generation, and what do they want to know? We asked about what they find difficult or want to consult about.

[Figure 5] Top difficulties/consultation needs for inheritance tax are "Tax amount calculation method" 34.3% and "Declaration/payment procedures" 33.0% (n=300/multiple responses)

The top responses were "Calculation of tax amount, such as basic exemption (34.3%)," "Declaration and payment procedures (33.0%)," "Appraisal value of real estate (family home, etc.) (26.3%)," "Whether my family will be subject to it in the first place (25.7%)," "Methods for tax saving and pre-inheritance planning (24.7%)," and "Who to consult (24.3%)."

Furthermore, when asked about "what they are interested in if they can consult or gather information," "simple diagnosis of whether inheritance tax will apply (36.7%)" was followed by "tax saving and pre-inheritance planning (including utilization of real estate and life insurance) (27.0%)" and "asset visualization (24.7%)."

Real estate appraisal and tax saving using real estate and life insurance are both areas that require specialized knowledge.

There are also many voices saying "I don't know who to consult," so knowing whether one's family is subject to it and then consulting a specialist seems like a realistic first step.

Conclusion: The Era When Inheritance Tax is Not "Someone Else's Problem" -- Start by Knowing "If You Are Subject to It"

This survey revealed that even in an era where "1 in 10 people" pay inheritance tax, 69.7% of people believe "it doesn't apply to me / I don't know."

The background to this is a lack of basic knowledge, with 90.3% not knowing the threshold for taxation and 82.7% not correctly understanding the basic exemption.

Furthermore, even among those who believe inheritance tax "will apply," only about 1 in 10 have taken measures. A double gap between recognition and action is evident, where even those who recognize "I will be subject to it" are not acting.

Since the 2015 revision, inheritance tax has become a familiar tax that can apply to ordinary households simply by adding real estate (family home) to savings.

The starting point is to first know "whether your family is subject to inheritance tax."

In situations requiring specialized judgment, such as real estate appraisal or measures utilizing real estate and life insurance, consulting a specialist knowledgeable in inheritance will help clarify the path forward tailored to your family's situation.

Survey Implementation Overview

Survey Organization: In-house survey Survey Method: Internet survey (Freeasy by iBridge Inc.) Target Area: Nationwide Participants: Men and women nationwide aged 30-69 (with at least one living parent or parent-in-law) Survey Period: June 16, 2026 Valid Responses: 300

* "Difficulties/Consultation Needs for Inheritance Tax" (Section 5) is a multiple-response question. * Descriptions regarding inheritance tax taxation rates and basic exemptions are general information based on publicly available materials from the National Tax Agency and laws and regulations. * Percentages in the survey results and graphs in this release may not add up to 100% due to rounding.

About PR media Inc.

PR media Inc. is a company engaged in call center operations, media business, advertising agency business, marketing business, and insurance agency business.

Within this scope, they operate information media outlets that convey themes related to "life and money," such as inheritance and asset building, in a specialized yet easy-to-understand manner.

Their goal is to provide reliable information and opportunities for consultation with experts so that each reader can face important life milestones with peace of mind.

Inheritance tax is difficult to understand whether one's own family is subject to it. When in doubt, consulting an expert can clarify the specific steps to take.

◆ PR media Inc. Company Profile

Established: August 22, 2018 Head Office Location: 9F, Ebisu SS Building, 4-3-14 Ebisu, Shibuya-ku, Tokyo Representative Director: Fujimori Nani URL: https://prmedia.co.jp/ Business Activities: Call center business / Media business / Advertising agency business / Marketing business / Insurance agency business