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The New NISA (Nippon Individual Savings Account, 新NISA) calculator helps Japanese investors understand their annual investment allowances, lifetime contribution limits, and tax-free growth potential under the redesigned NISA system that launched in January 2024. NISA is Japan's tax-free investment account programme, similar to the UK's ISA or the US's Roth IRA. In the new system, dividends, interest, and capital gains on investments held within NISA are completely exempt from the standard 20.315% tax that applies to regular investment accounts. The new NISA has two components that can be used simultaneously within the same account. The Tsumitate Investment Portion (つみたて投資枠) allows up to ¥120,000 per year in eligible long-term periodic investment products (approved index funds and similar). The Growth Investment Portion (成長投資枠) allows up to ¥2,400,000 per year in a broader range of securities. Together the annual limit is ¥3,600,000. The lifetime limit across both components is ¥18,000,000 — with the Growth Portion capped at ¥12,000,000 of the total. A key improvement in the 2024 system is that when you sell investments, the used contribution space is restored the following year based on acquisition cost, making the lifetime limit effectively reusable. This is a significant advantage over the old NISA which had no capacity restoration. Japan residents who are 18 years or older and have a Japanese address are eligible.
Annual Limit = Tsumitate ¥1.2M + Growth ¥2.4M = ¥3.6M; Lifetime Limit = ¥18M total (Growth capped at ¥12M); Tax Saved = Investment Return × 20.315%; Restored Space = Acquisition Cost of Sold Holdings (next year)
- 1Open a NISA account at a securities firm (証券会社) or bank that offers the service.
- 2Allocate contributions between the Tsumitate Portion (eligible index funds only) and Growth Portion (stocks, ETFs, REITs, funds).
- 3Stay within the annual total limit of ¥3.6 million and the individual portion limits.
- 4Track your remaining lifetime space (maximum ¥18M minus total acquisition cost held).
- 5Receive dividends and realise capital gains completely free of the 20.315% tax.
- 6When you sell investments, the acquisition cost of the sold amount is restored to your lifetime allowance the following year.
- 7Continue using NISA every year; the account has no time limit under the new permanent rules.
Maximum new NISA contribution is ¥3.6M per year
Filling both NISA portions annually maximises lifetime limit of ¥18M. At full capacity with 5% return, annual tax-free returns would be ¥900K — saving ¥182K in tax that would otherwise be due.
Long-term compounding in NISA dramatically outperforms taxable accounts
Over 30 years at ¥50K/month, the NISA balance grows to ¥41.6M. Without NISA, the same investment in a taxable account would have had 20.315% tax on each year's gains, resulting in a significantly lower final balance.
Space restored based on acquisition cost not sale price
If you bought stock for ¥2M and sold it for ¥3M, your NISA space is restored by ¥2M (acquisition cost), not ¥3M (sale price). The ¥1M profit remains tax-free — it just does not restore additional space.
Tax-free compounding is significantly more powerful over long periods
Over 20 years, avoiding the 20.315% tax on gains means significantly more compounding. The NISA advantage grows larger the longer the investment period.
Planning monthly investment amounts to fill both NISA portions and track lifetime limit usage., representing an important application area for the Nisa 2024 Calc in professional and analytical contexts where accurate nisa 2024 calculations directly support informed decision-making, strategic planning, and performance optimization
Calculating tax savings versus a standard taxable investment account over 20–30 years., representing an important application area for the Nisa 2024 Calc in professional and analytical contexts where accurate nisa 2024 calculations directly support informed decision-making, strategic planning, and performance optimization
Deciding the optimal product mix between Tsumitate index funds and Growth individual stocks., representing an important application area for the Nisa 2024 Calc in professional and analytical contexts where accurate nisa 2024 calculations directly support informed decision-making, strategic planning, and performance optimization
Modelling portfolio value at retirement based on NISA contributions and compound return., representing an important application area for the Nisa 2024 Calc in professional and analytical contexts where accurate nisa 2024 calculations directly support informed decision-making, strategic planning, and performance optimization
Planning NISA sales and space restoration to optimise lifetime contribution utilisation., representing an important application area for the Nisa 2024 Calc in professional and analytical contexts where accurate nisa 2024 calculations directly support informed decision-making, strategic planning, and performance optimization
Junior NISA (ended 2023)
In the Nisa 2024 Calc, this scenario requires additional caution when interpreting nisa 2024 results. The standard formula may not fully account for all factors present in this edge case, and supplementary analysis or expert consultation may be warranted. Professional best practice involves documenting assumptions, running sensitivity analyses, and cross-referencing results with alternative methods when nisa 2024 calculations fall into non-standard territory.
Carrying forward unused annual allowance
In the Nisa 2024 Calc, this scenario requires additional caution when interpreting nisa 2024 results. The standard formula may not fully account for all factors present in this edge case, and supplementary analysis or expert consultation may be warranted. Professional best practice involves documenting assumptions, running sensitivity analyses, and cross-referencing results with alternative methods when nisa 2024 calculations fall into non-standard territory.
Overseas ETF dividends and withholding tax
In the Nisa 2024 Calc, this scenario requires additional caution when interpreting nisa 2024 results. The standard formula may not fully account for all factors present in this edge case, and supplementary analysis or expert consultation may be warranted. Professional best practice involves documenting assumptions, running sensitivity analyses, and cross-referencing results with alternative methods when nisa 2024 calculations fall into non-standard territory.
Multiple NISA accounts
In the Nisa 2024 Calc, this scenario requires additional caution when interpreting nisa 2024 results. The standard formula may not fully account for all factors present in this edge case, and supplementary analysis or expert consultation may be warranted. Professional best practice involves documenting assumptions, running sensitivity analyses, and cross-referencing results with alternative methods when nisa 2024 calculations fall into non-standard territory.
| Feature | Tsumitate Portion (積立投資枠) | Growth Portion (成長投資枠) |
|---|---|---|
| Annual Limit | ¥1,200,000 | ¥2,400,000 |
| Lifetime Limit | ¥18M combined (shared) | ¥12M cap within ¥18M |
| Eligible Products | Approved index funds and ETFs only | Stocks, ETFs, REITs, most funds |
| Tax Treatment | Dividends + gains tax-free | Dividends + gains tax-free |
| Space Restoration | Yes — next year after sale | Yes — next year after sale |
| Duration | Permanent (no expiry) | Permanent (no expiry) |
What changed in the 2024 new NISA vs old NISA?
Key changes: (1) NISA is now permanent (old NISA had expiry dates), (2) annual limit increased to ¥3.6M (from ¥1.2M), (3) lifetime limit is ¥18M, (4) sold investments restore next year's allowance, (5) both Tsumitate and Growth portions can be used simultaneously. This is particularly important in the context of nisa 2024 calculator calculations, where accuracy directly impacts decision-making. Professionals across multiple industries rely on precise nisa 2024 calculator computations to validate assumptions, optimize processes, and ensure compliance with applicable standards. Understanding the underlying methodology helps users interpret results correctly and identify when additional analysis may be warranted.
Can foreigners living in Japan use NISA?
Yes. NISA is available to any Japan resident aged 18 or older, regardless of nationality. The account must be opened while resident in Japan, and it closes if you leave Japan and lose your Japanese address. This is particularly important in the context of nisa 2024 calculator calculations, where accuracy directly impacts decision-making. Professionals across multiple industries rely on precise nisa 2024 calculator computations to validate assumptions, optimize processes, and ensure compliance with applicable standards. Understanding the underlying methodology helps users interpret results correctly and identify when additional analysis may be warranted.
What products are eligible for the Tsumitate Portion?
Tsumitate Portion is limited to long-term, low-cost investment trusts and ETFs approved by the Financial Services Agency (FSA). These are typically low-cost index funds — individual stocks and actively managed funds are excluded. This is particularly important in the context of nisa 2024 calculator calculations, where accuracy directly impacts decision-making. Professionals across multiple industries rely on precise nisa 2024 calculator computations to validate assumptions, optimize processes, and ensure compliance with applicable standards. Understanding the underlying methodology helps users interpret results correctly and identify when additional analysis may be warranted.
Can losses in NISA be offset against gains outside?
No. Losses in NISA cannot be used to offset taxable gains in other accounts. This is the trade-off — NISA gains are tax-free but losses are trapped within the NISA wrapper and cannot be used for tax loss harvesting. This is particularly important in the context of nisa 2024 calculator calculations, where accuracy directly impacts decision-making. Professionals across multiple industries rely on precise nisa 2024 calculator computations to validate assumptions, optimize processes, and ensure compliance with applicable standards. Understanding the underlying methodology helps users interpret results correctly and identify when additional analysis may be warranted.
Is there an income limit for NISA?
No. Unlike some foreign equivalents, Japanese NISA has no income limit. Anyone aged 18 or over with a Japanese address can use NISA to its full extent regardless of income. This is particularly important in the context of nisa 2024 calculator calculations, where accuracy directly impacts decision-making. Professionals across multiple industries rely on precise nisa 2024 calculator computations to validate assumptions, optimize processes, and ensure compliance with applicable standards. Understanding the underlying methodology helps users interpret results correctly and identify when additional analysis may be warranted.
What is the ¥18M lifetime limit based on?
The ¥18M is based on acquisition cost of investments held — not market value. You can hold more than ¥18M in NISA if investments appreciate significantly; the limit restricts new contributions. This is particularly important in the context of nisa 2024 calculator calculations, where accuracy directly impacts decision-making. Professionals across multiple industries rely on precise nisa 2024 calculator computations to validate assumptions, optimize processes, and ensure compliance with applicable standards. Understanding the underlying methodology helps users interpret results correctly and identify when additional analysis may be warranted.
Can I have NISA and iDeCo simultaneously?
Yes, and it is generally recommended. iDeCo provides a tax deduction on contributions but locks funds until age 60. NISA provides tax-free growth with full liquidity. They complement each other well. This is particularly important in the context of nisa 2024 calculator calculations, where accuracy directly impacts decision-making. Professionals across multiple industries rely on precise nisa 2024 calculator computations to validate assumptions, optimize processes, and ensure compliance with applicable standards. Understanding the underlying methodology helps users interpret results correctly and identify when additional analysis may be warranted.
What happens to NISA if I leave Japan?
You must close your NISA account or convert it to a regular taxable account within a certain period after losing your Japanese address. Investments are transferred out at current market value. This is particularly important in the context of nisa 2024 calculator calculations, where accuracy directly impacts decision-making. Professionals across multiple industries rely on precise nisa 2024 calculator computations to validate assumptions, optimize processes, and ensure compliance with applicable standards. Understanding the underlying methodology helps users interpret results correctly and identify when additional analysis may be warranted.
Pro Tip
For most investors, prioritise filling the Tsumitate Portion with a global stock index fund (e.g., eMAXIS Slim All Country) each month. The simplicity, low cost, and automatic monthly investment habit are more important than sophisticated stock selection. Add Growth Portion contributions for individual stocks or ETFs once the Tsumitate is maxed out.
Did you know?
Japan's NISA programme has attracted massive participation since the 2024 reform. Within the first 3 months of the new NISA launch, over 11 million accounts were opened and ¥3 trillion was invested — far exceeding government projections. Japan's household savings, long held in low-yield bank deposits, are finally moving toward equity markets at a historic pace, in part driven by the new NISA's improved terms.
References
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