This Japan Tax calculator will help you understand how much Japanese National Income tax (shotokuzei 所得税) , residents tax (juminzei 住民税), social health insurance and national pension contributions you will have to pay depending on your annual salary.

Enter your Estimated Annual salary in Japan.¥

Your net income (after tax) is:
¥
Insurance + pension: ¥
Income tax: ¥
Residence/City tax: ¥

What income is taxable in Japan?

For tax calculation purposes in Japan, you’ll need to report income from your salary, along with any benefits or bonus payments that you receive. If you get non-monetary benefits as part of your job – for example, if your employer provides you a house to live in – this will also be treated as taxable income.
You also have to report income from other sources such as rental income and capital gains, however, how this is taxed depends on where it comes from, both in terms of the type of income, and where in the world it originated.

Like most things concerning tax, it’s relatively complicated, so if you’re unfamiliar with the Japanese income tax system, taking professional advice is essential.

Who has to pay income tax in Japan?

What income tax you’ll be required to pay in Japan depends on your residence status. This is a little more complex in Japan than in many other countries, as there’s a third category in addition to the common resident and non-resident options. In basic terms, you’ll be classified as either:

  • A resident taxpayer
  • A non-permanent resident taxpayer
  • A non-resident taxpayer

Regardless of nationality registered residents are required by the Japanese government to enrol in an approved health insurance and pension scheme.  There are basically 3 options to choose from:

  1. Employees’ Health Insurance (Shakai Hoken 社会保険)
  2. National Health Insurance (Kokumin Kenko Hoken 国民健康保険)
  3. Mutual Aid System (Kyousai Kumiai 共済組合)

For more information visit our Japanese Income tax guides.  Alternatively, you can visit the Japanese Taxation office website for the latest up to date information.

The above calculators are for informational purposes only. Any advice in this communication is not intended or written by us to be used, and cannot be used, for the purpose of (i) avoiding penalties that may be imposed by any governmental taxing authority or agency, or (ii) promoting, marketing or recommending to another party any matters addressed herein.The opinions and analyses expressed herein are subject to change at any time and are based on current market conditions. Any suggestions contained herein are general, and do not take into account an individual’s or entity’s specific circumstances or applicable governing law, which may vary from jurisdiction to jurisdiction and be subject to change.
No warranty or representation, express or implied, is made by SMEJapan, nor does SMEJapan accept any liability with respect to the information and data set forth herein.