入門: Japanese taxes every foreigner needs to know

This is the federal tax on what you earn. The rate is progressive: the more you earn, the higher the percentage. It ranges from 5% to 45% depending on annual income, plus an additional 2.1% reconstruction tax (復興特別所得税) applied on top of the tax amount.

In practice, your employer withholds an estimate every month (源泉徴収) and makes an adjustment at year-end — called 年末調整 (nenmatsu chōsei). If you overpaid, you get a refund. If you underpaid, the difference is deducted. For most salaried employees, this adjustment closes out the year’s tax obligation.

This is the local tax, charged by the city and prefecture government where you live. The general rate is 10% of the previous year’s taxable income (plus a fixed per-capita fee of around ¥5,000/year).

The point that confuses most foreigners: 住民税 has a one-year delay. In your first year of residency in Japan, you pay nothing. In your second year, you start paying based on what you earned in the first. When you leave Japan, you may receive retroactive charges for the last year you worked — watch out for this.

Not a tax, but mandatory and it appears on your pay stub. It grants access to the Japanese healthcare system: consultations, exams, hospitalizations and surgeries — generally you pay 30% of the cost and the insurance covers the other 70%.

The total rate is around 10% of standard remuneration, split equally between you and your employer (each pays ~5%). The exact percentage varies by insurer and prefecture.

The largest deduction on your pay stub after income tax. It funds retirement pensions, survivor pensions, and disability pensions. The employee rate is fixed at 9.15% of standard monthly remuneration — the employer pays the same amount separately.

For foreigners leaving Japan, there is the 脱退一時金: a mechanism to partially reclaim contributions when leaving the country. Anyone who contributed for at least 6 months can apply. See full guide →

Provides temporary income if you are dismissed without cause and are looking for re-employment. The employee contribution is small — 0.6% of gross salary — and the employer pays a larger portion.

To be eligible for benefits, you must have contributed for at least 6 to 12 months (depending on contract type) and register at the 公共職業安定所 (Hello Work) after dismissal. Foreigners have the same rights as Japanese nationals here.

Funds care services for the elderly and people with special needs. Contributions begin at age 40 — before that, you don’t pay and won’t see this item on your pay stub.

The total rate is approximately 1.6% (employee + employer, each paying half). For foreigners who leave Japan before age 65 without using the service, there is no equivalent withdrawal mechanism like the pension.

Equivalent to VAT or sales tax. It applies to virtually all purchases of goods and services. The standard rate is 10%, already included in the displayed price (Japan shows prices with taxes included).

There is a reduced rate of 8% for food and non-alcoholic beverages (except restaurant dining, which is 10%) and for printed newspaper subscriptions. It’s the tax you pay without noticing every day — and one of the largest sources of government revenue.