Japanese Tax Guide for Foreigners
By Tour in Japan editors · Updated
Understanding Japanese taxes is essential for residents. Here's what you need to know.
Understanding Japanese taxes is essential for residents. Here's what you need to know.
Tax Types
| Tax | Who Pays | Rate |
|---|---|---|
| Income Tax | Residents | 5–45% (progressive) |
| Residence Tax | Residents | 10% of previous year's income |
| Consumption Tax | Everyone | 8–10% (on purchases) |
| Social Insurance | Employees | ~15% of salary |
Income Tax
Tax Brackets (2026)
| Income | Tax Rate |
|---|---|
| ¥0–1,950,000 | 5% |
| ¥1,950,000–3,300,000 | 10% |
| ¥3,300,000–6,950,000 | 20% |
| ¥6,950,000–9,000,000 | 23% |
| ¥9,000,000–18,000,000 | 33% |
| ¥18,000,000–40,000,000 | 40% |
| ¥40,000,000+ | 45% |
Deductions
| Deduction | Amount |
|---|---|
| Basic | ¥480,000 |
| Employment income | Based on salary |
| Social insurance | Full amount |
| Dependents | ¥380,000 per dependent |
| Housing loan | Varies |
| Life insurance | Varies |
Residence Tax (住民税)
- Rate: 10% of previous year's income
- Collected by: City/ward office
- Payment: June (annual) or monthly installments
- First year: Often waived (no previous year income)
Consumption Tax (消費税)
| Rate | What |
|---|---|
| 8% | Food, drinks (not alcohol) |
| 10% | Everything else |
Tax-Free Shopping
- Spend ¥5,000+ at one store
- Show your passport
- 10% tax exemption
Filing Taxes
Who Must File
- Residents with income over ¥200,000
- Self-employed individuals
- Multiple income sources
When to File
- February 16 – March 15 annually
- At your local tax office
How to File
- Gather documents — income certificates, deductions
- Fill out forms — or use tax software
- Submit at tax office — or mail
- Pay — by bank transfer
Tips
- Keep all receipts — for deductions
- File on time — penalties for late filing
- Ask your employer — about year-end adjustment (年末調整)
- Use tax software — easier than manual forms
- Consult a tax advisor — if you have complex income
- Understand social insurance — it's a significant deduction
- Plan for residence tax — it's collected in arrears
- Keep records — for 7 years
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