Japan Tax Calculator (2026)

Income tax rates and take-home pay for Japan

Using Tokyo for state/regional taxes. Region selection coming soon.

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Japan Income Tax Brackets (2025)

Bracket Income Range Rate
5% bracket¥0 - ¥1,950,0005.0%
10% bracket¥1,950,000 - ¥3,300,00010.0%
20% bracket¥3,300,000 - ¥6,950,00020.0%
23% bracket¥6,950,000 - ¥9,000,00023.0%
33% bracket¥9,000,000 - ¥18,000,00033.0%
40% bracket¥18,000,000 - ¥40,000,00040.0%
45% bracket¥40,000,000+45.0%

Personal allowance: ¥950,000

Local inhabitant's tax (prefectural and municipal)

Bracket Income Range Rate
10% flat rate¥0+10.0%

Health insurance

Bracket Income Range Rate
Health insurance on monthly salary base¥0 - ¥16,680,0005.0%

Welfare pension

Bracket Income Range Rate
Welfare pension contribution¥0 - ¥7,800,0009.2%

Unemployment insurance

Bracket Income Range Rate
Unemployment insurance¥0+0.5%

Surtax (national income tax surcharge)

Bracket Income Range Rate
2.1% surtax on national income tax¥0+2.1%

Minimum tax (high-income earners)

Bracket Income Range Rate
27.5% minimum tax on excess over JPY 330 million¥330,000,000+27.5%

Applies when income exceeds ¥330,000,000

Forest environmental tax

Fixed amount: ¥1,000 per year

Key Facts

Tax Year

2025

Currency

JPY

Top Rate

45.0%

Brackets

7 brackets

Allowance

¥950,000

Social Contributions

3 items

Assumptions

  • · Model assumes a permanent resident employee in Tokyo prefecture.
  • · Earned income deduction applied as tiered formula on gross employment income.
  • · Personal exemption uses 2025 temporary rates; will revert to lower amounts from 2027.
  • · Local inhabitant's tax includes both prefectural and municipal components (10% flat rate plus per capita tax).
  • · Social insurance contributions are deductible for national income tax purposes.
  • · Forest environmental tax (JPY 1,000 fixed) included in local per capita tax.
  • · Health insurance rate of 4.955% applies; long-term care insurance (0.795%) applies for ages 40-64; age 35 model excludes long-term care.
  • · Surtax (2.1% of national income tax) is calculated after main income tax and brackets.
  • · Minimum tax (27.5% on income above JPY 330 million) is implemented as a surcharge for very high earners only.
  • · Non-resident taxation and spouse/dependent deductions excluded from this representative model.

Frequently asked questions

What are the income tax brackets in Japan?

Japan has seven progressive income tax brackets ranging from 5% on income up to 1.95 million JPY, increasing to 45% on income over 40 million JPY. After calculating tax on these brackets, a 2.1% national surtax is applied, and a personal exemption of 950,000 JPY is deducted from taxable income. The data shown here reflects Tokyo as the default region, though local inhabitant's tax rates vary by prefecture and municipality.

How much do I pay in social insurance contributions in Japan?

As an employee in Japan, you contribute to three main social insurance programs: health insurance at 4.955% of gross income, welfare pension at 9.15% (capped at 7.8 million JPY annual income), and unemployment insurance at 0.55% of gross income. The good news is that these contributions are deductible from your national income tax calculation, which reduces your overall tax burden. If you are between ages 40 and 64, you will also pay long-term care insurance at 0.795%.

What is the earned income deduction in Japan?

Japan provides a tiered earned income deduction that reduces your taxable income based on your gross employment income. For incomes up to 1.9 million JPY, you get a flat 650,000 JPY deduction; this increases gradually up to a maximum of 1.95 million JPY for very high earners. This deduction is applied before calculating your national income tax, making it a significant benefit for employees.

Do I pay local taxes in addition to national income tax?

Yes, in addition to national income tax, you pay a local inhabitant's tax that includes both prefectural and municipal components, totaling a 10% flat rate on taxable income plus a 5,000 JPY fixed per capita tax. This data uses Tokyo rates as the default, but rates vary by prefecture and municipality, so your actual local tax may differ depending on where you live and work in Japan. You also receive a 430,000 JPY personal exemption specifically for local inhabitant's tax purposes.

What happens if I earn very high income in Japan?

If your gross income exceeds 330 million JPY, a minimum tax of 27.5% applies to the amount above that threshold, in addition to regular income tax. This surcharge ensures high earners pay a baseline level of tax even with deductions and credits. Additionally, all taxpayers pay a 2.1% national surtax on top of their calculated income tax.

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