How much do you make a year?
after business expenses, if any
Your net income is:
{{income_net | to_yens}} per year
{{(income_net / 12) | to_yens}} per month
Calculation Details
| Salary | {{salary | to_yens}} |
| Insurance / Pension | - {{social_amount | to_yens}} |
| Income Tax | - {{income_tax_amount | to_yens}} |
| Resident Tax | - {{resident_tax_amount | to_yens}} |
| Net Income (Annual) | {{income_net | to_yens}} |
| Net Income (Monthly) | {{(income_net / 12) | to_yens}} |
First, the Employment Income Deduction is calculated (see table). This is subtracted from your salary to get your Taxable Income.
Your Taxable Income is {{taxable_income | to_yens}}.
| Annual Salary | Calculation |
|---|---|
| 0 - 1,625,000 | ¥550,000 |
| 1,625,001 - 1,800,000 | (Salary × 40%) - 100,000 |
| 1,800,001 - 3,600,000 | (Salary × 30%) + 80,000 |
| 3,600,001 - 6,600,000 | (Salary × 20%) + 440,000 |
| 6,600,001 - 8,500,000 | (Salary × 10%) + 1,100,000 |
| 8,500,001+ | ¥1,950,000 |
If you stay for more than one year in Japan, you will need to pick of those two insurance/pension plans. If you work for a company, they will most likely subscribe you to the Social Insurance which covers both insurance and pension. If you don't, your city/ward office will make you take the National Health Insurance. To my experience, the National Pension is not mandatory in this case but you can ask for it as well.
National Health Insurance
This is around 6% to 10% depending on where you live (for example, there is almost a difference of 4% between Setagaya and Shinjuku). If you have dependents (wife and kids), it also increases this amount. If it is your first year in Japan, you will pay an average of 50,000Y.
National Pension
It is ¥16,980 per month (¥203,760 per year) as of 2025.
Your Social Insurance
Health insurance is 5% of your salary, pension is 9.15%, and unemployment insurance is 0.6% of your salary (total: 14.75%). Your employer pays an equal amount for health and pension insurance.
Your Insurance (and Pension) is ¥0.
The Income Tax calculation is based on your Taxable Income minus the Basic Deduction (¥480,000) and social insurance payments. The tax is calculated progressively using the rates in the table.
You need to add the Special Income Tax for Reconstruction (復興特別税) to this amount. It is 2.1% of the income tax which was calculated previously.
Your final Income Tax is {{income_tax_amount | to_yens}}.
| Annual Salary | Tax Rate |
|---|---|
| 0 - 1,950,000 | 5% |
| 1,950,001 - 3,300,000 | 10% |
| 3,300,001－6,950,000 | 20% |
| 6,950,001－9,000,000 | 23% |
| 9,000,001－18,000,000 | 33% |
| 18,000,001－40,000,000 | 40% |
| 40,000,001 + | 45% |
You only pay resident tax if you were a resident of Japan on January 1st of that year. The tax is calculated as 10% of your taxable income (after deductions) plus a ¥5,000 per capita tax. The basic deduction for resident tax is ¥430,000 (different from income tax).
Your Resident Tax is {{resident_tax_amount | to_yens}}.