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 official you are deemed to have a domicile in Japan even while working abroad (Income Tax Act, Art. 3). You are a resident of Japan and taxed on all income arising in and outside Japan.
• Your base of life (domicile) is in Japan. Under Art. 2(1)(iii) of the Income Tax Act you are a resident of Japan (other than a non-permanent resident) and taxed on all income arising in and outside Japan, including income from Pakistan.
• You have lived in Japan continuously for a year or more, or are presumed to have a domicile there because your occupation requires living there for a year or more (Income Tax Act, Art. 2(1)(iii); Enforcement Order, Art. 14). You are a resident of Japan and taxed on all income arising in and outside Japan.
• You have a domicile in Japan or have lived there for a year or more, you do not have Japanese nationality, and your periods of living in Japan in the past ten years total five years or less — you are a «non-permanent resident» (Income Tax Act, Art. 2(1)(iv)). Japan taxes income other than foreign-source income, and foreign-source income (for example from Pakistan) only to the extent it is paid in Japan or remitted to Japan.
• You have a domicile in Japan or have lived there for a year or more, and your periods of living in Japan in the past ten years exceed five years — 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 resident of Japan. If your periods of living in Japan in the past ten years total five years or less, you are a non-permanent resident (foreign-source income taxed only if paid in or remitted to Japan); if more, all your income is taxed. Check the period from your dates of entry and departure.

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, 02/01/2026)

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: 01/11/2026. An indicative calculation for a typical case. Not tax advice.

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