Japan uses a two-tier tax system: national income tax (5-45% across 7 brackets) plus jūminzei (residence tax) at a flat 10%. This means a 45% earner actually pays 55% combined. The basic deduction is ¥620,000 for 2026 (temporarily higher at lower incomes). A ¥10,000,000 earner (~$67,000 USD) pays roughly ¥1,460,000 in national income tax (including the 2.1% reconstruction surtax) plus residence tax (~14.6% effective rate), or about ¥2,726,000 (~27%) once employee social insurance is included (single employee under 40 in Tokyo's 23 wards, no bonus). Japan allows furusato nōzei—donate to rural municipalities and receive local products while redirecting your residence tax. Social insurance adds roughly 13-15% for employees (about 12.7% at ¥10 million, because the pension premium is capped). Most employees don't file returns—employers handle year-end adjustment (nenmatsu chōsei). Self-employed must file by March 15. Use our calculator to estimate your Japanese tax liability.
Note: These are marginal rates — you only pay the higher rate on income within each bracket.
Source: National Tax Agency
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Japan has 7 national income tax brackets: 5% up to ¥1,950,000, 10% from ¥1,950,000-¥3,300,000, 20% from ¥3,300,000-¥6,950,000, 23% from ¥6,950,000-¥9,000,000, 33% from ¥9,000,000-¥18,000,000, 40% from ¥18,000,000-¥40,000,000, and 45% above ¥40,000,000. Add 10% residence tax for total rates.
Jūminzei is a flat 10% local tax (6% prefectural + 4% municipal) charged on prior year's income. Unlike income tax withheld in real-time, residence tax is calculated after year-end and paid the following year—either deducted from salary June-May or via quarterly bills. If you leave Japan, you still owe residence tax on the prior year's income.
Furusato nōzei ('hometown tax') lets you donate to rural municipalities in exchange for local products (wagyu beef, sake, rice, etc.) while redirecting your residence tax. You essentially pay the same tax but get gifts worth 30% of donation value. Limits depend on income—roughly ¥30,000-100,000 for typical earners. Use sites like Furusato Choice to browse options.
Most employees don't need to file—employers handle nenmatsu chōsei (year-end adjustment). You must file if: self-employed, earn over ¥20,000,000, have multiple employers, have side income over ¥200,000, or claim certain deductions (medical expenses, furusato nōzei for 6+ municipalities). Deadline is March 15 for the prior year.
Japanese employees pay roughly 13-15% of salary in social insurance: health insurance (~5%, including the child-support levy), pension/kosei nenkin (9.15%, on pay up to ¥650,000 a month, so the share falls at high incomes) and employment insurance (0.5%). Employers match most of these. Self-employed pay national health insurance (varies by municipality) and national pension (¥16,980/month flat). Total burden including income and residence tax is about 27% at ¥10,000,000 and about 32% at ¥15,000,000 for a single employee in Tokyo's 23 wards.
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Last Updated: October 2026