Japan vs South Korea: Tax Comparison

Compare income tax rates and take-home pay between Japan and South Korea

vs

On a $100,000 salary, you'd take home $73,398 in South Korea (Seoul) versus $66,955 in Japan (Tokyo) — a difference of $6,442/year ($537/month).

Tax Breakdown Comparison

South Korea

2025 tax year

Lower Tax

Take-Home Pay

$73,398

$6,116/mo

Effective Rate

26.6%

of gross

Gross$100,000
Income Tax -$17,592
Seoul Tax -$1,723
Social Contributions -$7,288
Total -$26,602

Japan

2025 tax year

Take-Home Pay

$66,955

$5,580/mo

Effective Rate

33.0%

of gross

Gross$100,000
Income Tax -$13,972
Tokyo Tax -$6,968
Social Contributions -$11,811
Surcharges -$293
Total -$33,045

Effective Tax Rate by Income

Loading chart...

Shows effective tax rate (total tax / gross income) at different income levels in USD

Life & Taxes

What it's like to live and earn in each country

Neon Lights and Traditions

Moving between Tokyo and Seoul is a popular path for tech innovators and creative professionals seeking the perfect blend of ultra-modern efficiency and deep-rooted culture. While Japan offers a more reserved, meticulous lifestyle, South Korea pulsates with a high-energy 'pali-pali' (hurry-hurry) culture that appeals to those who thrive on constant evolution.

The Daily Grind Vibes

Life in Japan is defined by seamless convenience and a quiet respect for public space, whereas South Korea offers an incredibly vibrant social scene with world-class digital infrastructure. Your choice often comes down to whether you prefer Japan's serene aesthetics and attention to detail or Korea's fast-paced, 24-hour lifestyle and trend-setting energy.

Decoding the Tax Maze

Both nations employ progressive tax systems that scale with your success, topping out at the same marginal rate, but they walk different paths to get there. Japan features seven distinct brackets and a local inhabitant tax that can surprise newcomers, while South Korea uses an eight-bracket system that offers a slightly more granular climb for high earners.

Safety Nets and Perks

Your contributions buy you a ticket to some of the world's best healthcare and public infrastructure, though the paperwork varies. Japan’s system includes unique elements like the Reconstruction Special Income Tax and specific regional levies, while South Korea focuses heavily on a centralized National Pension and health insurance model that is famously efficient.

The Ultimate Verdict

If you are a mid-career professional, Japan’s generous temporary exemptions and employment deductions offer a sophisticated financial landscape to navigate. However, for the truly high-flying executive, South Korea’s bracket structure and lack of additional surcharges might make it the more streamlined choice for your global portfolio.

Try other incomes:

Compare all 140+ countries

See how Japan and South Korea rank globally

Japan vs South Korea: Tax System Details

South Korea

Tax Year
2025
Currency
KRW
Region Used
Seoul
Key Assumptions
  • -Employment Income Deduction is modeled using tiered percentages and flat amounts to match the marginal deduction structure.
  • -The 'Credit for Class A wages' (which reduces tax liability by up to KRW 740,000 depending on income) and other specific credits like the one for credit card usage are not modeled in the numeric brackets but significantly impact final liability.
  • -Social security contributions (NP, NHI, and EI) are all treated as deductible from taxable income based on the source text.
  • -Health Insurance rate (4.004%) includes the mandatory long-term care insurance component.

Japan

Tax Year
2025
Currency
JPY
Region Used
Tokyo
Key Assumptions
  • -2025 temporary basic exemption rates for national income tax applied
  • -Tokyo Metropolis health insurance rates used
  • -Long-term care insurance (Kaigo Hoken) excluded as worker is age 35 (applies 40-64)
  • -Unemployment insurance rate updated for April 2025 (0.55%)
  • -Forest environmental tax (1,000 JPY) consolidated with local inhabitant per-capita tax
  • -Social insurance premiums are deductible for income tax purposes

Calculation Methodology

What's Included

  • Federal/national income tax
  • State, provincial, or local taxes
  • Social security contributions
  • Healthcare levies (where mandatory)
  • Additional surcharges

Assumptions

  • Single filer, no dependents
  • Employment income only
  • Standard deductions applied
  • Age 35 (where relevant)
  • No special tax credits