Taxes on salary: Japan

How much tax and social security is paid on a salary in Japan, what is left as take-home pay, and which special tax regimes exist.

Only some of the country's direct taxes and levies are counted: income tax on wages and compulsory contributions. Not counted: property and real-estate taxes; taxes on dividends, interest and other investment income; inheritance and gift taxes; indirect taxes such as VAT, excise and customs duties.

Official OECD figures for the average wage (Taxing Wages 2026, 2025 data): tax burden on the employee 22.6 %, including employer contributions 33.1 %. OECD

Special tax regimes

These regimes are not included in the calculation above: each has its own conditions.

Tax residence

When Japan treats you as a tax resident

• As a Japanese national or local public servant you are deemed to have a domicile in Japan even while working abroad without one (Income Tax Act art. 3). You are a Japanese resident taxed on all income arising in and outside Japan.
• The base of your life (domicile) is in Japan. Under art. 2(1)(iii) of the Income Tax Act you are a Japanese resident (not a non-permanent resident) taxed on all income arising in and outside Japan.
• You have lived in Japan continuously for one year or more, or you are presumed to have a domicile there because your occupation requires living in Japan for one year or more (art. 2(1)(iii) of the Income Tax Act; Enforcement Order art. 14). You are a Japanese resident taxed on all income arising in and outside Japan.
• You have a domicile in Japan or have lived there for one year or more, you do not have Japanese nationality, and your total time of domicile or residence in Japan in the past 10 years is 5 years or less, so you are a «non-permanent resident» (art. 2(1)(iv)). Japan taxes your income other than foreign-source income, and foreign-source income — for example from the United States — only if it is paid in Japan or remitted to Japan.
• You have a domicile in Japan or have lived there for one year or more, and your total time of domicile or residence in Japan in the past 10 years exceeds 5 years, so you are a resident other than a non-permanent resident. Even without Japanese nationality, Japan taxes all your income arising in and outside Japan.
• You are a Japanese resident. If your total time of domicile or residence in Japan in the past 10 years is 5 years or less, you are a non-permanent resident (foreign-source income taxed only if paid in Japan or remitted there); if it exceeds 5 years, all income is taxable. Check the periods from your entry and departure dates.

Assumptions

• Calculated with the OECD Taxing Wages methodology: income tax including local taxes plus employee social security; single person without children, tax year 2026, ECB rate of 2 January 2026.
• Employee is under 40: no long-term care insurance premium (1.62%).
• Contributions on an equal monthly salary with no bonuses; standard monthly remuneration approximated by actual pay with monthly ceilings (¥650,000 pension, ¥1,390,000 health); bonus ceilings ignored.
• Health insurance — Kyōkai Kenpo Tokyo: 9.91% (Jan–Feb), 9.85% (from March), split equally; child support levy 0.23% from April 2026.
• Inhabitant tax computed with FY2026 rules on current-year income (as in OECD Taxing Wages), not on prior-year income.
• Forest environment tax (¥1,000) excluded, as in OECD. Workers' accident insurance at 0.25%, as in OECD.
• Local taxes — location: Tokyo (23 special wards)
• Tax period: 2026-01-01 – 2026-12-31
• Exchange rate: 1 EUR = 183.94 JPY (ECB euro foreign exchange reference rate, 2026-01-02)

Sources

• OECD, Taxing Wages 2026, Japan country note (2025 parameters, tax equations)
• 国税庁「源泉所得税の改正のあらまし」令和8年4月 (基礎控除 104万/67万/62万円, 給与所得控除 最低保障額 74万円, 令和8・9年分)
• 財務省「令和8年度税制改正について」(基礎控除・給与所得控除の引上げ)
• PwC Worldwide Tax Summaries, Japan — Sample personal income tax calculation (2026; 住民税 基礎控除 43万円, 調整控除)
• 協会けんぽ 令和8年度 都道府県単位保険料率 (東京 9.91%→9.85%), 子ども・子育て支援金率 0.23%
• 日本年金機構 厚生年金保険料額表 (保険料率 18.3%)
• 厚生労働省 年金制度改正法 (標準報酬月額上限 65万円, 68万円は2027年9月から)
• 山形労働局 令和8年度雇用保険料率 (一般の事業 労働者 5/1000, 事業主 8.5/1000, 2026年4月1日から)
• 弥生 令和8年度 子ども・子育て拠出金率 3.6/1000 据え置き

Data checked: 2026-11-01. An indicative calculation for a typical case. Not tax advice.

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