The Emperor’s “annual income” is more than just a number — it is a public budget supporting his duties as the nation’s symbol.This article explains the structure of the Imperial Household’s finances, breaking down the Naitei-hi, Kyutei-hi, and Kazoku-hi.
We reveal how national taxes sustain the Emperor’s role in modern Japan.
- The Structure of the Imperial Household Budget
- The Naitei-hi — What It Really Is
- The Kyutei-hi — Supporting National Ceremonies
- The Kazoku-hi — Supporting Other Imperial Family Members
- Financial Management and Transparency
- The Emperor’s Private Funds and Charitable Acts
- Historical Background of the Imperial Economy
- The Meaning of Taxes in Supporting the Imperial Family
- Conclusion
The Structure of the Imperial Household Budget
The Imperial Household’s finances are publicly funded under Article 88 of the Japanese Constitution.
This system, defined by the Imperial Household Economy Law, is managed by the Imperial Household Agency.
The entire budget is divided into three main categories, as shown below:
| Category | Main Purpose | Approx. Annual Budget (FY 2023) |
|---|---|---|
| Naitei-hi (Imperial Allowance) | Living and official expenses of the Emperor, Empress, and Emperor Emeritus | Approx. 324 million yen |
| Kyutei-hi (Court Expenses) | Ceremonial events, receptions, facility maintenance | About 6 billion yen |
| Kazoku-hi (Imperial Family Allowance) | Living and activity expenses of other Imperial Family members | About 280 million yen |
Among these, the Naitei-hi functions as what might be called the Emperor’s “annual income”, though it is not a personal salary.
The Naitei-hi — What It Really Is
The Naitei-hi covers the living and official expenses of the Emperor, Empress, and Emperor Emeritus.
It includes food, clothing, housing, and also compensation for staff involved in Imperial duties.
It is crucial to note that this is not personal income.
The Emperor does not receive a salary but rather an allocation of funds necessary for performing his duties as the nation’s symbol.
For example, official visits to disaster areas, receptions for foreign dignitaries, and national ceremonies are all funded through this allowance.
An estimated breakdown of how the Naitei-hi is used is shown below:
| Spending Category | Description | Approx. Ratio |
|---|---|---|
| Living Expenses | Food, clothing, housing | About 30% |
| Official Duties | Ceremonies, public events, gifts | About 45% |
| Staff & Management | Staff allowances, maintenance costs | About 25% |
The Naitei-hi is adjusted annually but remains a stable and consistent budget, ensuring the smooth execution of Imperial activities.
The Kyutei-hi — Supporting National Ceremonies
The Kyutei-hi is the largest component of the Imperial budget, covering national ceremonies, diplomatic events, and facility upkeep.
Many public events familiar to Japanese citizens, such as the New Year’s Greeting and the Imperial Garden Party, are funded through this account.
| Spending Item | Description | Related Ceremonies / Facilities |
|---|---|---|
| Ceremonial Costs | Enthronement, Daijosai, Garden Parties | Imperial Palace, Imperial Halls |
| Diplomatic Expenses | State banquets, receptions for visiting dignitaries | Palace & Guest House |
| Facility Maintenance | Repairs, cultural property preservation | Imperial Palace, Akasaka Estate |
This expenditure totals roughly 6 billion yen annually, including salaries for Imperial Household Agency staff.
These funds ensure the preservation of Japan’s traditions and dignity in domestic and international affairs.
The Kazoku-hi — Supporting Other Imperial Family Members
The Kazoku-hi provides funds for the living and official activities of Imperial Family members other than the Emperor.
Amounts vary depending on status and are formally approved by the Diet after calculation by the Imperial Household Agency.
| Status | Approx. Annual Amount | Main Use |
|---|---|---|
| Crown Prince (Prince Akishino) | About 91.5 million yen | Official and living expenses, staff costs |
| Prince / Princess | About 30.5 million yen | Public duties, travel expenses |
| Lord / Lady | About 15.25 million yen | Living costs, ceremony-related expenses |
These funds cover travel, attire for ceremonies, and preparations for public events.
Imperial Family members perform nationwide duties, attending local ceremonies, welfare activities, and cultural events.
The Kazoku-hi thus plays an essential role in maintaining connections between the Imperial Family and the people.
Financial Management and Transparency
The Imperial finances are strictly managed by the Imperial Household Agency and approved annually by the National Diet.
All spending related to public duties and ceremonies is published in the Annual Report on the Imperial Economy.
However, the detailed breakdown of the Naitei-hi remains confidential, to protect the private lives of the Emperor, Empress, and Emperor Emeritus.
Despite this confidentiality, all expenditures are recorded and verified within the Agency’s administrative framework.
This careful balance between transparency and privacy maintains both the dignity of the Imperial Family and public trust in the system.
The Emperor’s Private Funds and Charitable Acts
Apart from public funds, the Emperor and Empress occasionally donate from their private means to disaster relief or welfare causes.
These personal gestures, often undisclosed in detail, demonstrate a deep sense of compassion and solidarity with those in need.
It is also worth noting that the Imperial Family does not accumulate private wealth.
Since the Naitei-hi is entirely used for living and official purposes, asset accumulation is not allowed under current law.
This ensures the Emperor’s political and financial neutrality, preserving the symbolic role defined by the Constitution.
Historical Background of the Imperial Economy
Before World War II, Japan operated under the Imperial Property System, allowing the Emperor to hold private assets.
After the war, however, these assets were nationalized under the new Constitution, creating the present state-funded structure.
This change redefined the monarchy as “an institution existing with and for the people.”
Since then, the Imperial Family has focused on non-political roles such as cultural preservation, social welfare, and diplomacy.
| Period | System Features | Funding Source |
|---|---|---|
| Meiji–Prewar | Imperial Family owned private assets | Imperial property |
| Postwar–Present | Financed under the Imperial Household Economy Law | National budget (taxes) |
| Reiwa Era | Public-service oriented, people-focused | National funds + limited private means |
The Meaning of Taxes in Supporting the Imperial Family
The funds allocated to the Imperial Family are not mere expenses but an investment in cultural continuity and national identity.
Through ceremonies, disaster visits, and cultural support, the Emperor embodies the constitutional principle of being “a symbol of the unity of the people.”
Each event requires extensive coordination—ritual preparations, security, documentation, and media arrangements.
Hundreds of specialists support these operations behind the scenes, all financed by the national budget.
In this way, citizens’ taxes serve to preserve tradition, strengthen unity, and sustain Japan’s historical continuity.
Conclusion
The Naitei-hi, approximately 324 million yen, represents the Emperor’s functional “income” but is not personal remuneration.
Together with the Kyutei-hi and Kazoku-hi, the total Imperial budget reaches around 6 billion yen annually.
This transparent yet respectful system has evolved over generations to maintain both accountability and dignity.
It ensures that the Emperor and the Imperial Family can fulfill their symbolic duties while living modestly and honorably.
Behind the grandeur of ceremonies lies centuries of discipline, devotion, and respect for tradition.
Understanding this financial framework is not merely about money—it is about recognizing Japan’s identity and continuity as a nation.
