The below Japan income tax calculator is used to calculate your take home income after all the various taxes in Japan such as resident and withholding tax plus various deductions from your salary. If you have any questions please let us know.
In summary:
*Residency Tax is only triggered if you Living in Japan on January 1st of current year.
*Health insurance premiums are assessed based your living area, for simplicity sake the Japan income calculator uses Tokyo as a base. Your actual results may differ by a few hundred yen depending on where you live.
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:
- Employees’ Health Insurance (Shakai Hoken 社会保険)
- National Health Insurance (Kokumin Kenko Hoken 国民健康保険)
- 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.
Japanese Tax Terms and Glossary
| English | Romaji | Kanji |
|---|---|---|
| Income Tax Withholding Statement | kyuyo-shotoku-gensen-choshu-hyo | 給与所得源泉徴収票 |
| Income Tax | zeikin | 税金 |
| Total Annual Income | kyuyo-shunyu | 給与収入 |
| Total fixed-rate exemptions | shotoku-kojo | 所得控除 |
| Income after employment income deduction | kyuyo shotoku | 給与所得 |
| Total Taxable income | kazei-shotoku | 課税所得 |
| Income Tax Withholding Statement | kyuyo-shotoku-gensen-choshu-hyo | 給与所得源泉徴収票 |
| Residence Tax | jumin-zei | 住民税 |
| Residence Tax (Prefectural) | kenmin-zei | 県民税 |
| Residence Tax (Municipal) | shimin-zei | 市民税 |
| Total fixed-rate exemptions | shotoku-kojo | 所得控除 |
| Income after employment income deduction | kyuyo shotoku | 給与所得 |
| Tax Deduction | kōjo | 控除 |
| Tax Credit | zeigaku kōjo | 税額控除 |
| Taxable Property | kazei zaisan | 課税財産 |
| Tax Evasion | nōzei nogare | 納税逃れ |
| Income after employment income deduction | kyuyo shotoku | 給与所得 |
| Taxable Sales | kazei uriage | 課税売上 |
| Taxable Income Limit | kazei shotoku kagen | 課税所得下限 |
| Tax Authority | zeimusho | 税務署 |
| Tax Identification Number | nōzeisha bangō | 納税者番号 |
| Taxable Income Limit | kazei shotoku kagen | 課税所得下限 |
| Taxable Period | nōzei kikan | 納税期間 |
| Tax Refund | zeikin henkan | 税金返還 |
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.