Japan Tax Calculator (2026)

Income tax rates and take-home pay for Japan

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

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

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

Japan uses a progressive income tax system with seven 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 tax of 5,000 JPY, and social contributions including health insurance (4.955%), welfare pension (9.15%), and unemployment insurance (0.55%), all of which reduce your taxable income.

What is the earned income deduction in Japan?

Japan offers a tiered earned income deduction that reduces your taxable income based on your gross salary. For example, if you earn up to 1.9 million JPY, you get a flat 650,000 JPY deduction; between 1.9 and 3.6 million JPY, you deduct 30% of income plus 80,000 JPY; and the deduction continues to increase in tiers up to a maximum of 1.95 million JPY for very high earners.

Do I have to pay social insurance contributions if I work in Japan?

Yes, as an employee in Japan you contribute to three types of social insurance: health insurance at 4.955% of your gross income, welfare pension at 9.15% (capped at 7.8 million JPY annual income), and unemployment insurance at 0.55%. The good news is that these contributions are deductible from your income before calculating national income tax.

What is the tax rate in Tokyo specifically?

This calculator uses Tokyo as the default region for local taxes. Tokyo residents pay a 10% flat local inhabitant's tax (covering both prefectural and municipal components) plus a 5,000 JPY per capita tax that includes a 1,000 JPY forest environmental tax. However, local tax rates vary by prefecture and municipality across Japan, so your rate could differ if you relocate to another region.

At what income level do I hit the highest tax bracket in Japan?

Japan's highest income tax bracket of 45% applies to income above 40 million JPY per year. Additionally, very high earners with income above 330 million JPY face a 27.5% minimum tax on the excess amount, making Japan's top marginal rate quite steep for the wealthiest individuals.

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