Tamashii is the ordinary Japanese word for soul or spirit, cognate with tama, and it is used both in religious contexts and in everyday speech. The concept is old and its content is not doctrinally fixed, since Shinto has no systematic scriptural theology of the soul comparable to those developed by the doctrinal religions.
What can be said with confidence concerns practice rather than doctrine. Japanese religious life has consistently held that the spirits of the dead persist, remain in relation with the living, and require attention. The dominant pattern, described in detail by ethnographers, is one in which the recently dead are polluting and potentially dangerous and require a sequence of memorial rites conducted over a period of years; and in which, once those rites are complete, the individual spirit is gradually assimilated into a collective body of ancestors who watch over the household. The Obon festival in summer, when the dead are welcomed home and then formally sent off again, is the most visible expression of this, and it remains among the most widely observed of Japanese religious occasions.
The division of labour between Shinto and Buddhism in Japan bears directly on the subject. Funerary and memorial rites have been overwhelmingly Buddhist since the Edo period, when the temple registration system made temple affiliation effectively compulsory, while Shinto shrines have generally handled matters of life, purification and blessing and have avoided the pollution associated with death. The common summary that Japanese are born Shinto and die Buddhist is an oversimplification, but it reflects a real division. Shinto funerals do exist, developed particularly in the nineteenth century in connection with nativist and state projects, but they remain a small minority of the whole.
Related vocabulary should be kept distinct. Tamashii is the soul in general; mitama is its honorific and ritual form; and the terms for the spirits of those who died with grievance, and for the enshrined spirits of the war dead, belong to the same field while carrying very different weight. The last is politically contested: Yasukuni Shrine enshrines the spirits of those who died in Japan's wars, including men convicted as war criminals after 1945, and holds that once enshrined the spirits are merged collectively and cannot be separated out, a doctrinal position with substantial diplomatic consequences in Japan's relations with its neighbours.