United Kingdom vs Japan: Tax Comparison

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On a $100,000 salary, you'd take home $72,162 in United Kingdom versus $66,864 in Japan.

United Kingdom

$72,162

+$5,297/year

Japan

$66,864

That's $441 more per month in United Kingdom

Side-by-side breakdown

Highest Take-Home

United Kingdom

2025-26 · London

27.8%

effective tax rate

Take-home
$72,162

$6,013/mo

Income 23% Social 5%

Japan

2025 · Tokyo

33.1%

effective tax rate

Take-home
$66,864

$5,572/mo

Income 14% State 7% Social 12% Other 0%

Tax rate by income level

Effective Tax Rate by Income

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

Understanding the difference

Life & Taxes

East Meets West

London and Tokyo are both magnetic hubs for ambitious professionals and creative souls looking to trade the ordinary for world-class city living. While the UK draws in those seeking a gateway to Europe and a historic corporate landscape, Japan attracts expats looking for high-tech efficiency blended with a deeply traditional and safe lifestyle.

The Daily Commute

Living in the UK feels like a fast-paced blend of pub culture and global diversity, though public services can sometimes feel a bit weathered. Meanwhile, life in Tokyo is a masterclass in precision, where everything from the trains to the convenience stores works perfectly, though the corporate culture can be significantly more intense.

The Tax Philosophy

The UK keeps things simple with just three tax brackets and a generous personal allowance that lets you keep more of your early earnings. Japan takes a more granular approach with seven different tiers and a local inhabitant tax, meaning your tax bill often feels like a slow climb rather than a sudden jump.

Your Social Safety Net

UK residents pay into National Insurance to fund the NHS and state pensions, usually without much extra paperwork. Japan’s system is more holistic, with specific deductions for health, welfare, and unemployment insurance, often resulting in world-leading healthcare access that feels more like a premium membership than a basic right.

The Final Verdict

If you value simplicity and a higher tax-free starting point, the UK's streamlined system is hard to beat. However, if you don't mind navigating regional surcharges and complex insurance tiers in exchange for incredibly high-quality public infrastructure, Tokyo offers a sophisticated trade-off.

Detailed tax breakdown

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