The move is an attempt to capitalise on her popularity to help the governing party regain ground after major losses in recent years, but it will delay a vote on a budget that aims at boosting a struggling economy and addressing soaring prices.
Takaichi was elected in October as Japan's first female leader.
She promised a two-year halt to a consumption tax of 8% on food, adding that her spending plans would create jobs, boost household spending and increase other tax revenues.
Also Read: Davos 2026 | Bank of America CEO sees US growth beating expectations this year
The prospect of such a tax cut, which the government estimates would reduce its revenue by 5 trillion yen ($32 billion) a year, sent the yield on Japan's 10-year government bonds to a 27-year high earlier on Monday.
Calling an early election allows Takaichi to capitalise on strong public support to tighten her grip on the ruling Liberal Democratic Party and shore up her coalition’s fragile majority.
The election will test voter appetite for higher spending at a time when the rising cost of living is the public's top concern.
Prices were the main worry of 45% of the respondents in a poll released by public broadcaster NHK last week, followed by diplomacy and national security at 16%.
Takaichi's administration plans a new national security strategy this year after deciding to hasten a military build-up that will lift defence spending to 2% of GDP, a sharp break from decades in which Japan capped such outlays at around 1%.
