Income tax in Japan 2026: your tax rate and what you keep
You keep
¥1,259,590 a month
¥15,115,083 a year · 63.0% of your gross
| National income tax | ¥5,106,251 | 21.3% |
|---|---|---|
| Reconstruction surtax (2.1%) | ¥107,231 | 0.4% |
| Resident tax (Tokyo) | ¥1,997,063 | 8.3% |
| Employees' pension | ¥713,700 | 3.0% |
| Health insurance and child support levy | ¥840,672 | 3.5% |
| Employment insurance | ¥120,000 | 0.5% |
| Net | ¥15,115,083 | 63.0% |
The national income tax scale for 2026 runs from 5% to 45%, the top rate starting above ¥40,000,000; contributions and any local taxes come on top. A foreigner who has lived in Japan for five years or less out of the past ten pays no Japanese tax on foreign income unless it is paid in or remitted to Japan. After that, worldwide income falls in scope, under a national scale that reaches 45% above ¥40 million, plus a 2.1% surtax on that tax and a flat 10% local inhabitant's tax. December 2026 brings a larger iDeCo pension allowance. At ¥47,000,000 gross, net falls to ¥25,900,186, or 55%; at ¥79,000,000, to ¥39,927,298, or 51%. On ¥24,000,000 the country ranks 21 of 35 for cash in hand, before any special regime. The sums assume: Tokyo: resident tax at 10% and Kyokai Kenpo Tokyo health insurance. On safety, schools and health it scores 81 out of 100 among the countries covered. The page then sets out 3 legal ways to cut the bill, the Non-permanent resident regime and the trap to know before leaving.
The tax scale
National 2026 scale, before deductions. Social contributions and any local taxes come on top.
| From ¥0 to ¥1,950,000 | 5% |
|---|---|
| From ¥1,950,000 to ¥3,300,000 | 10% |
| From ¥3,300,000 to ¥6,950,000 | 20% |
| From ¥6,950,000 to ¥9,000,000 | 23% |
| From ¥9,000,000 to ¥18,000,000 | 33% |
| From ¥18,000,000 to ¥40,000,000 | 40% |
| Above ¥40,000,000 | 45% |
At different salaries
| Gross | Income tax | Contributions | Net | Kept |
|---|---|---|---|---|
| ¥16,000,000 | ¥3,622,082 | ¥1,600,100 | ¥10,777,818 | 67% |
| ¥24,000,000 | ¥7,210,545 | ¥1,674,372 | ¥15,115,083 | 63% |
| ¥47,000,000 | ¥19,310,442 | ¥1,789,372 | ¥25,900,186 | 55% |
| ¥79,000,000 | ¥37,123,330 | ¥1,949,372 | ¥39,927,298 | 51% |
Assumptions: Tokyo: resident tax at 10% and Kyokai Kenpo Tokyo health insurance. Single person; social insurance is approximate, at about 14.7% of pay (pension 9.15% up to ¥650,000 a month, health 5.04% up to ¥1,390,000 a month, employment 0.5%), ignoring standard pay grades and bonus rules; resident tax is shown on the same year's income though it is billed the next year, and the steps in the basic deduction can lower net by a small amount just above a threshold.
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Average salary in Japan
The official average salary in Japan is ¥5,185,703 gross a year (2025), about $32,842. Run through the 2026 tax table, it leaves ¥4,072,404 net, which is ¥339,367 a month and 79% of gross.
Among the 31 salaries compared, this one comes 24 before tax and 25 after, as tax moves it down 1 place. Malta precedes it with $28,200 net, Portugal follows with $21,976.
| Gross a year | ¥5,185,703 |
|---|---|
| Net a year | ¥4,072,404 |
| Net a month | ¥339,367 |
| Share kept | 79% |
OECD figure: average gross pay per full-time equivalent employee. Exchange rate of 2 November 2026.
Cost of living in Japan
For 2025, the World Bank puts prices in Japan at 69.0, with the United States at 100: 31% below the United States. The country holds rank 127 of 161, counting up from the cheapest.
Among countries with a page here, it is cheaper than Malta (69.0) and dearer than the United Arab Emirates (68.8). Adjusted for prices, the $25,791 net of an average salary is worth $37,378 in American terms, against $70,018 for an average American employee. The last detailed world comparison, 2021, gives 142.8 for everyday prices and 177.4 for housing, with the world at 100.
Beyond the money
National public figures: they place the country, and say nothing about one district or one school.
| Safety, schools, health score | 81 out of 100 |
|---|---|
| Homicides per 100,000 people | 0.2 |
| Political stability (−2.5 to +2.5) | 1.3 |
| Rule of law (−2.5 to +2.5) | 1.5 |
| Mean PISA score at 15 | 533 |
| Reference international school | ¥2,980,000 · The British School in Tokyo, Tokyo (2026-27) |
| Life expectancy | 84 years |
| PM2.5 fine particles (µg/m³) | 11.5 |
| Housing price level (world = 100) | 177.4 |
| Everyday price level (world = 100) | 142.8 |
Annual tuition published by the school, for Years 7-9, excluding enrolment and other fees unless stated. One school among others, shown as a marker, not a recommendation. A JPY 100,000 yearly capital development fee is listed separately. Enrolment fees also apply: JPY 500,000 enrolment and JPY 680,000 educational resources.
Against other countries
At ¥24,000,000 gross, it ranks 21 of 35 for cash in hand, at today's exchange rate.
Paying less, legally
iDeCo personal pension
From December 2026 the ceiling for employees rises to ¥62,000 a month, shared with workplace schemes, and to ¥75,000 for the self-employed. Membership extends up to age 70.
NISA tax-free account
Gains are tax-free on up to ¥3.6 million a year, split into ¥1.2 million in the instalment frame and ¥2.4 million in the growth frame, with an ¥18 million lifetime limit.
Furusato nozei donations
Donations to local governments reduce tax on the amount above ¥2,000, up to an income-based ceiling. Donors with no return to file can use the one-stop route if they give to five municipalities or fewer.
Special regimes
Non-permanent resident Open
Foreign-source income is taxed only to the extent it is paid in Japan or remitted to Japan
Who is tax resident in Japan?
Residence depends on having a jusho, the base of a person's life judged from objective facts, or on having lived in Japan continuously for at least one year. Treaty tie-breakers then look at permanent home, centre of vital interests, habitual abode and nationality, in that order.
The trap to know
Leaving with ¥100 million or more in securities and similar assets triggers tax on unrealised gains if the person has lived in Japan for more than five of the past ten years. Deferral of five years, extendable to ten, requires a tax agent, collateral and an annual filing.
Questions
How much is ¥24,000,000 after tax in Japan?
¥15,115,083 a year, or ¥1,259,590 a month, for a single resident employee. Income tax comes to ¥7,210,545 and contributions to ¥1,674,372. At ¥47,000,000, the share you keep moves to 55%. Each month that leaves ¥1,259,590 of ¥2,000,000 gross. No benefit reserved for new arrivals enters this figure.
What is the top income tax rate in Japan?
45% on the 2026 scale, above ¥40,000,000. At ¥24,000,000, each extra 1,000 leaves about ¥489 net. At ¥79,000,000 gross you would keep 51%. Only the slice beyond that amount bears it: to judge a pay rise, look instead at the band you fall into today.
What gross salary leaves ¥22,673,000 net a year in Japan?
About ¥40,062,100 gross a year, or ¥3,338,508 a month, for a single resident employee, with no special regime taken into account. Tax and contributions then take 43% of gross. Use this amount as a base for negotiating, adjusted for the bonuses and benefits in the contract.
Is Japan safe and expensive to live in?
The public figures on this page show 0.2 homicides per 100,000 people, a housing price level of 177.4 (world = 100) and a mean PISA score of 533. National averages: a district or a school can differ widely. Life expectancy stands at 84 years and fine particles at 11.5 µg/m³, as this page details below with its sources.
Sources
- National Tax Agency: income tax rate table (No. 2260)
- National Tax Agency: employment income deduction (No. 1410)
- National Tax Agency: basic deduction (No. 1199)
- Tokyo Metropolitan Government: individual resident tax
- Kyokai Kenpo: fiscal 2026 premium rates by prefecture
- Kyokai Kenpo Tokyo: premium table from March 2026 (health and pension)
- Japan Pension Service: employees' pension premium table
- MHLW: employment insurance rates for fiscal 2026
- World Bank / UNODC, intentional homicides per 100,000
- World Bank, Worldwide Governance Indicators: political stability and absence of violence
- World Bank, life expectancy at birth
- World Bank, PM2.5 air pollution, mean annual exposure
- World Bank, International Comparison Program 2021: price level index, housing (world = 100)
- OECD, PISA 2022 Results, Volume I
- The British School in Tokyo
- OECD, Average annual wages, current prices in national currency (read 3 November 2026)
- World Bank, PPP conversion factor for private consumption (PA.NUS.PRVT.PP) divided by the official exchange rate (PA.NUS.FCRF), API read 3 November 2026
Figures 2026, checked on