Take-Home Pay in Japan
|Salary Before Tax|
|Salary After Tax||Enter salary|
Simply enter your annual or monthly income into the salary calculator above to find out how taxes in Japan affect your income. You'll then get a breakdown of your total tax liability and take-home pay.
- Salary Before Tax
- your total earnings before any taxes have been deducted. Also known as Gross Income.
- Salary After Tax
- the money you take home after all taxes and contributions have been deducted. Also known as Net Income.
Income Tax Breakdown
|Total Tax Due|
- Total Tax Due
- the sum of all taxes and contributions that will be deducted from your gross salary.
The deductions used in the calculator assume you are not married and have no dependents. You may pay less if tax credits or other deductions apply.
Taxation in Japan
- 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 2020. Visit japan-guide.com for more details.
Financial Facts About Japan
The average (median) annual gross salary in Japan is ¥4.33 million, 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 ¥360,833 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 2022 is ¥961 per hour, as established by the Labor ministry's Central Minimum Wages Council. This figure represents the weighted average of the different minimum wages applicable in each prefecture. Tokyo has the highest minimum hourly pay of ¥1,072, in contrast to the Okinawa and Kochi prefectures which have the lowest hourly wage of only ¥853.
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.