Japanese income taxes: the most long lived civilization's insight?
The quick version:
For individual residents, income tax in Japan is a combination of national and local taxes applied to your income from the previous year. The national tax is progressive, while local taxes add a generally flat rate. Non-residents are taxed only on income from Japanese sources.
National income tax (for residents)
The national income tax uses a progressive system, with tax rates ranging from 5% to 45%. The higher the income, the higher the tax bracket applied to that portion of the income. A 2.1% surtax for reconstruction is also added to the national tax amount.
Taxable income brackets (amounts in Japanese yen):
Up to ¥1,950,000($13,190.47): 5%
¥1,950,000–¥3,300,000 ($13,190.29 -$22,322.64): 10%
¥3,300,000–¥6,950,000 ($22,322.64-$47,016.33): 20%
¥6,950,000–¥9,000,000 ($47,016.33-$60,886.51): 23%
¥9,000,000–¥18,000,000 ($60,886.51-$121,773.02:) 33%
¥18,000,000–¥40,000,000 ($121,773.02-$270,584.73: 40%
Over ¥40,000,000 (270,584.73): 45%
Local income tax (inhabitant tax)
In addition to the national tax, residents pay a local inhabitant tax, which is composed of prefectural and municipal taxes.
Local income tax (inhabitant tax)
In addition to the national tax, residents pay a local inhabitant tax, which is composed of prefectural and municipal taxes.
Income-graded component: Generally a flat rate of about 10% of your taxable income.
Flat-rate component: A fixed annual amount, which may vary depending on the local government.
Taxation for residents and non-residents
Japan's tax system distinguishes between three types of taxpayers:
Permanent residents: Japanese citizens and foreign residents who have lived in Japan for five out of the last 10 years are taxed on their worldwide income.
Non-permanent residents: Foreigners who have lived in Japan for less than five of the last 10 years are taxed on Japan-sourced income and any foreign-sourced income that is remitted to Japan.
Non-residents: Individuals who do not have a domicile in Japan and have lived there for less than a year are only taxed on their Japan-sourced income. Non-residents with Japan-sourced employment income are taxed at a flat rate of 20.42% with no deductions.
Tax payment and filing
Tax withholding: For most salaried employees, income tax is automatically deducted from their wages by their employer through a system called gensen choshuhyo.
Annual tax return (Kakutei Shinkoku): A tax return is typically not required for salaried employees whose taxes are properly withheld. However, individuals with side income, multiple employers, or high annual incomes (over ¥20 million) must file a return.
Tax year: The Japanese tax year runs from January 1 to December 31, with tax returns due by March 15 of the following year.
Disclaimer: Tax laws are subject to change. It is recommended to consult the official National Tax Agency (NTA) website or a qualified tax professional for the most current information and advice.
Japan - Individual - Taxes on personal income
Jul 2, 2025 — Generally, in Japan, the local inhabitant's tax is imposed at a flat rate of 10%. Japanese local governments (prefectural and municipal governments) levy local ...
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PwC Tax Summaries
How the tax rate in Japan for foreigners works (UK guide) - Wise
Apr 25, 2025 — In Japan, income tax is known as Shotokuzei.
2. Most people who earn a salary/wages in Japan don't need to file an annual tax return, as taxes are deducted and .
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Wise
Taxes in Japan: Japan Tax Guide & Tax Calculator
Nov 29, 2024 — Taxes in Japan * Japan's tax system is structured around national, prefectural, and municipal levels. ... * Local income tax consists of prefectural and municip...
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Relocate.me
Source: https://www.google.com/search?q=income+tax+in+japan&oq=income+tax+in+japan&gs_lcrp=EgZjaHJvbWUyCQgAEEUYORiABDIHCAEQABiABDIHCAIQABiABDIHCAMQABiABDIHCAQQABiABDIHCAUQABiABDIHCAYQABiABDIHCAcQABiABDIHCAgQABiABDIHCAkQABiABDIICAoQABgWGB4yCAgLEAAYFhgeMggIDBAAGBYYHjIICA0QABgWGB4yCAgOEAAYFhge0gEINjc3OGowajSoAg6wAgHxBbrje3ADuNSi&client=ms-android-charter-us-rvc3&sourceid=chrome-mobile&ie=UTF-8
For individual residents, income tax in Japan is a combination of national and local taxes applied to your income from the previous year. The national tax is progressive, while local taxes add a generally flat rate. Non-residents are taxed only on income from Japanese sources.
National income tax (for residents)
The national income tax uses a progressive system, with tax rates ranging from 5% to 45%. The higher the income, the higher the tax bracket applied to that portion of the income. A 2.1% surtax for reconstruction is also added to the national tax amount.
Taxable income brackets (amounts in Japanese yen):
Up to ¥1,950,000($13,190.47): 5%
¥1,950,000–¥3,300,000 ($13,190.29 -$22,322.64): 10%
¥3,300,000–¥6,950,000 ($22,322.64-$47,016.33): 20%
¥6,950,000–¥9,000,000 ($47,016.33-$60,886.51): 23%
¥9,000,000–¥18,000,000 ($60,886.51-$121,773.02:) 33%
¥18,000,000–¥40,000,000 ($121,773.02-$270,584.73: 40%
Over ¥40,000,000 (270,584.73): 45%
Local income tax (inhabitant tax)
In addition to the national tax, residents pay a local inhabitant tax, which is composed of prefectural and municipal taxes.
Local income tax (inhabitant tax)
In addition to the national tax, residents pay a local inhabitant tax, which is composed of prefectural and municipal taxes.
Income-graded component: Generally a flat rate of about 10% of your taxable income.
Flat-rate component: A fixed annual amount, which may vary depending on the local government.
Taxation for residents and non-residents
Japan's tax system distinguishes between three types of taxpayers:
Permanent residents: Japanese citizens and foreign residents who have lived in Japan for five out of the last 10 years are taxed on their worldwide income.
Non-permanent residents: Foreigners who have lived in Japan for less than five of the last 10 years are taxed on Japan-sourced income and any foreign-sourced income that is remitted to Japan.
Non-residents: Individuals who do not have a domicile in Japan and have lived there for less than a year are only taxed on their Japan-sourced income. Non-residents with Japan-sourced employment income are taxed at a flat rate of 20.42% with no deductions.
Tax payment and filing
Tax withholding: For most salaried employees, income tax is automatically deducted from their wages by their employer through a system called gensen choshuhyo.
Annual tax return (Kakutei Shinkoku): A tax return is typically not required for salaried employees whose taxes are properly withheld. However, individuals with side income, multiple employers, or high annual incomes (over ¥20 million) must file a return.
Tax year: The Japanese tax year runs from January 1 to December 31, with tax returns due by March 15 of the following year.
Disclaimer: Tax laws are subject to change. It is recommended to consult the official National Tax Agency (NTA) website or a qualified tax professional for the most current information and advice.
Japan - Individual - Taxes on personal income
Jul 2, 2025 — Generally, in Japan, the local inhabitant's tax is imposed at a flat rate of 10%. Japanese local governments (prefectural and municipal governments) levy local ...
favicon
PwC Tax Summaries
How the tax rate in Japan for foreigners works (UK guide) - Wise
Apr 25, 2025 — In Japan, income tax is known as Shotokuzei.
2. Most people who earn a salary/wages in Japan don't need to file an annual tax return, as taxes are deducted and .
favicon
Wise
Taxes in Japan: Japan Tax Guide & Tax Calculator
Nov 29, 2024 — Taxes in Japan * Japan's tax system is structured around national, prefectural, and municipal levels. ... * Local income tax consists of prefectural and municip...
favicon
Relocate.me
Source: https://www.google.com/search?q=income+tax+in+japan&oq=income+tax+in+japan&gs_lcrp=EgZjaHJvbWUyCQgAEEUYORiABDIHCAEQABiABDIHCAIQABiABDIHCAMQABiABDIHCAQQABiABDIHCAUQABiABDIHCAYQABiABDIHCAcQABiABDIHCAgQABiABDIHCAkQABiABDIICAoQABgWGB4yCAgLEAAYFhgeMggIDBAAGBYYHjIICA0QABgWGB4yCAgOEAAYFhge0gEINjc3OGowajSoAg6wAgHxBbrje3ADuNSi&client=ms-android-charter-us-rvc3&sourceid=chrome-mobile&ie=UTF-8
