How much do you make a year? (after expenses, if any)
Your net income is:
{{income_net | to_yens}}
* The Blue Return System is a special advantageous system commonly used by freelances in Japan. For more information, check this.
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 | {{income_net | to_yens}} |
First, the Employment Income Deduction should be calculated (check the table). Remove it from your Salary and you get your Taxable Income.
Please note that in 2020, this calculation will change (not to your advantage, I am afraid).
Your Taxable Income is {{taxable_income | to_yens}}.
| Annual Salary | Calculation |
|---|---|
| 0 - 1,800,000 | The greater of (Annual Salary * 40%) or 650,000 |
| 1,800,001 - 3,600,000 | (Annual Salary * 30%) + 180,000 |
| 3,600,001 - 6,600,000 | (Annual income * 20%) + 540,000 |
| 6,600,001 - 10,000,000 | (Annual Salary * 10%) + 1,200,000 |
| 10,000,001 - 15,000,000 | (Annual Salary * 5%) + 1,700,000 |
| 15,000,001+ | ¥2,450,000 |
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 simply 16,410Y / month, so 196,920Y / year.
Your Social Insurance
Insurance is 4,95% of your salary and pension is 9,15% of your salary. The real amount of this tax is actually the double of this, but your company is paying for it.
Your Insurance (and Pension) is ¥0.
The Income Tax calculation is based on your Taxable Income minus the Standard Personal Deduction (which is equal to 380,000Y). This amount needs to be calculated per salary segment using that table. For example your salary was 2,090,000, then you’d have to pay 5% on the first 1,950,000 and 10% on the last 140,000.
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% |
| 40,000,001 + | 40% |
You actually only need to pay the resident tax if you were a resident of Japan on the first of January of that year. The basic calculation is based on your Annual Salary, minus the Employment Income Deduction, minus any deductions you can claim (have a look at the official Guide to Metropolitan Taxes for those). Take 10% of this amount.
Your Resident Tax is {{resident_tax_amount | to_yens}}.