Japan Tax Calculator (2026)

Japan Income Tax Brackets (2025)

Personal allowance: ¥950,000

Local inhabitant's tax (prefectural and municipal)

Health insurance

Welfare pension

Unemployment insurance

Surtax (national income tax surcharge)

Minimum tax (high-income earners)

Applies when income exceeds ¥330,000,000

Forest environmental tax

Fixed amount: ¥1,000 per year

How much income tax will I pay if I move to Japan as an expat?

Japan has a progressive income tax system with 7 brackets ranging from 5% to 45%, plus a 2.1% surtax on top of your national income tax. You'll also pay local inhabitant's tax at a flat 10% rate plus a fixed per capita amount, plus social contributions for health insurance, pension, and unemployment insurance that are deductible from your taxable income. The exact amount depends on your income level, but an employee earning around 5 million JPY would fall into the 20% national bracket after applying the earned income deduction.

What is the earned income deduction in Japan?

The earned income deduction is a tiered deduction applied to employment income that ranges from a flat 650,000 JPY for lower earners up to a maximum of 1,950,000 JPY for those earning over 8.5 million JPY annually. This deduction reduces your taxable income before the income tax brackets are applied, making it a significant tax relief for employees. The deduction amount increases as a percentage of income in the mid-range brackets, incentivizing employment income.

Do I have to pay social insurance contributions in Japan, and are they deductible?

Yes, employees in Japan pay three types of social contributions: health insurance at 4.955%, welfare pension at 9.15%, and unemployment insurance at 0.55% of gross income. All of these contributions are deductible from your gross income for national income tax purposes, which reduces your overall tax burden. Note that welfare pension contributions have a maximum contribution cap at 7.8 million JPY of income.

What is the personal exemption amount in Japan for 2025?

Japan offers a temporary personal exemption of 950,000 JPY for national income tax purposes in 2025, which is applied after calculating your taxable income from earnings minus the earned income deduction. There is also a separate personal exemption of 430,000 JPY for local inhabitant's tax. Keep in mind that the national exemption is set to revert to a lower amount from 2027 onwards.

Does the tax rate vary depending on which prefecture I live in?

The national income tax brackets are uniform across Japan, but local inhabitant's tax rates and per capita amounts can vary by prefecture and municipality. This calculator uses Tokyo as the default region, where the local inhabitant's tax is a flat 10% plus a fixed per capita tax of 5,000 JPY. If you're considering relocating to a different prefecture, your local tax obligations may differ from the Tokyo rates shown here.

What happens if I earn very high income in Japan?

High earners in Japan face a minimum tax of 27.5% applied to income exceeding 330 million JPY, in addition to the standard progressive brackets which reach 45% for income above 40 million JPY. This minimum tax ensures that very high earners cannot reduce their effective tax rate below a certain threshold through deductions and credits. Additionally, all income tax is subject to a 2.1% surtax on top of the main tax calculated.

Are there any age-related differences in my social insurance contributions?

Yes, long-term care insurance at 0.795% is required for employees aged 40-64 in addition to health insurance and other contributions, but employees under 40 do not pay this surcharge. The health insurance rate of 4.955% applies to all employees regardless of age. This calculator models a 35-year-old employee and therefore excludes the long-term care insurance component.

Is this tax calculator accurate for non-residents or those with dependents?

This calculator models a permanent resident employee and does not account for non-resident taxation, spouse deductions, or dependent allowances, which can significantly reduce tax liability for families. If you are a non-resident or have dependents, your actual tax bill may be substantially different from the calculation shown. We recommend consulting with a Japanese tax professional for a personalized assessment of your specific situation.

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