Salary Calculator Japan

Tax Year: 2025 – 2026

If you live in Japan and earn a gross annual salary of ¥4,430,000, or ¥369,167 per month, your monthly take-home pay will be ¥300,622. This results in an effective tax rate of 19%, as estimated by our Japanese tax calculator.

The following chart outlines your earnings relative to the national average salary and minimum wage in Japan.

Please note that the national figures assume full-time employment for the entire year, while your salary is calculated according to the settings you selected.

The average (median) annual gross salary in Japan is ¥4,430,000, according to the latest survey on wage structure from the Ministry of Health, Labor and Welfare. This works out to a monthly salary of about ¥369,167 before taxes. Although this figure represents the 50th percentile of all Japanese income earners, it is important to note that salaries in Japan vary widely depending on gender, age, employment type, and industry.

The minimum wage in Japan in 2024 is ¥1,054 per hour, as established by the Labor ministry's Central Minimum Wages Council. This corresponds to a minimum gross annual salary of ¥2,192,320, if we consider the statutory working week of 40 hours, although most employees in Japan work significantly more than that. It's important to note that the ¥1,054 per hour figure represents the weighted average of the different minimum wages applicable in each prefecture.

Japan is the third-largest economy in the world by nominal GDP. Its industry is competitive and market-oriented, with a focus on the manufacture of precision and high technology items such as hybrid vehicles, robotics, and optical instruments. According to the Human Development Index, Japan residents enjoy a high standard of living, the country being ranked on the 19th place in terms of quality of life.

• Income Tax is a progressive tax with rates ranging from 5% to 45%. As your wage increases and falls into higher income brackets, the marginal tax rate will increase too. Employment earnings are subject to a standard deduction that reduces the taxable income. The minimum deduction is currently ¥550,000. Japan uses a pay-as-you-earn payroll system, where income tax is usually applied on the gross salary directly by the employer, who then transfers the payment to the tax authorities. This means that employees receive their monthly take-home pay from their employer, and do not typically need to file a tax return at the end of the tax year.
• Social Insurance is a tax applied on your gross income, and it comprises pension, health, unemployment, and accident compensation. Like income tax, social insurance is deducted at source from the gross salary by the employer on a monthly basis.
• Residence Tax is paid only if the taxpayer was living in Japan on the first of January of that year. This tax is applied on the yearly salary minus the employment standard deduction and any other deductions.

The information presented here is based on the fiscal regulations in Japan in 2025. Visit japan-guide.com for more details.