Japan has several different income taxes. National income tax rates are progressive, beginning from a low of 5% for income up to JPY 1,950,000 and peaking at 45% for income exceeding JPY 40,000,000.
Additionally, a surtax of 2.1% is assessed on the national income tax. Japan also imposes local inhabitant’s tax generally at a flat rate of 10%.
To use the Japan income tax calculator, simply input your desired salary and filing status to begin.
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Japan Tax Brackets and Incentives
National Income Tax Rates in Japan
| Over (JPY) | Not Over (JPY) | Tax Rate (%) | Deduction (JPY) | Tax on Over (JPY) |
|---|---|---|---|---|
| 0 | 1,950,000 | 5 | 0 | 0 |
| 1,950,000 | 3,300,000 | 10 | 97,500 | 97,500 |
| 3,300,000 | 6,950,000 | 20 | 427,500 | 232,500 |
| 6,950,000 | 9,000,000 | 23 | 636,000 | 962,500 |
| 9,000,000 | 18,000,000 | 33 | 1,536,000 | 1,434,000 |
| 18,000,000 | 40,000,000 | 40 | 2,796,000 | 4,404,000 |
| 40,000,000 | – | 45 | 4,796,000 | 13,204,000 |
Surtax and Local Income Tax in Japan
| Tax Type | Rate (%) | Description |
|---|---|---|
| Surtax | 2.1 | Assessed on an individual’s national income tax. |
| Local Inhabitant’s Tax | 10 | Imposed on a taxpayer’s prior year income. An equalisation per capita tax is also assessed (standard annual amount: JPY 5,000). Not deductible. |
Non-Resident Tax Information
| Tax Type | Rate (%) | Description |
|---|---|---|
| National Income Tax | 20.42 | Taxed on Japan-source compensation with no deductions. This rate includes the 2.1% surtax. |
| Local Inhabitant’s Tax | 10 | Imposed if registered as a resident on the local municipality ledger as of 1 January of the following year. |
Employee Social Security Contributions in Japan
| Type of Contribution | Contribution Rate on Regular Monthly Income | Contribution Rate on Annual Bonus |
|---|---|---|
| Tokyo Metropolitan Health Insurance | 5.00% (capped at JPY 1,390,000 monthly) | 5.00% (capped at JPY 5.73 million annually) |
| Welfare Pension Insurance | 9.15% (capped at JPY 650,000 monthly) | 9.15% (capped at JPY 1.5 million monthly) |
| Unemployment Insurance | 0.60% | 0.60% |
| Overall | 14.75% | 14.75% |
Notes:
- As of March 2023, the health insurance rate is fixed at 5.00%. Concurrently, individuals aged 40 to 64 are required to pay long-term care insurance, fixed at a rate of 0.91%. (Check with a tax professional if this applies to you)
- An additional 0.36% is levied separately for child allowances.
- Starting in April 2023, unemployment insurance is set at a fixed rate of 0.60%.
All values are in Japanese yen (JPY).
Standard Deduction
| Employment Income (JPY) | Exclusion Formula | Salary Income Exclusion (JPY) |
|---|---|---|
| 0 – 1,625,000 | – | 550,000 |
| 1,625,000 – 1,800,000 | 40% of employment income – 100,000 | 550,000 – 620,000 |
| 1,800,000 – 3,600,000 | 30% of employment income + 80,000 | 620,000 – 1,160,000 |
| 3,600,000 – 6,600,000 | 20% of employment income + 440,000 | 1,160,000 – 1,760,000 |
| 6,600,000 – 8,500,000 | 10% of employment income + 1,100,000 | 1,760,000 – 1,950,000 |
| 8,500,000 and above | – | 1,950,000 |
Personal Exemptions
| Total Income (JPY) | National Income Tax Exemption (JPY) | Local Inhabitants Tax Exemption (JPY) |
|---|---|---|
| Under 24 million | 480,000 | 430,000 |
| 24 million – 24.5 million | 320,000 | 290,000 |
| 24.5 million – 25 million | 160,000 | 150,000 |
| Over 25 million | Not eligible | Not eligible |
Note: Special spouse exemptions and deductions for dependents are available based on specific conditions. Non-resident taxpayers are typically not eligible for these deductions.
