Income Tax in Japan for Foreigners
If you live and earn income in Japan, you are subject to Japanese income tax. Your obligations depend on residency status — "resident" taxpayers (1+ year in Japan) are taxed on worldwide income, while "non-residents" are taxed only on Japan-sourced income. Most employees have tax withheld from salary.
| Taxable Income (yen) | Rate |
|---|---|
| Up to 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% |
| Over 40,000,000 | 45% |
Key Concepts
Withholding (源泉徴収)
Employers deduct estimated tax monthly. At year-end, the employer performs "year-end adjustment" (年末調整) to reconcile. Most salaried employees do not need to file a separate return.
Reconstruction Tax
An additional 2.1% surtax on income tax applies through 2037 for earthquake reconstruction.
Non-Permanent Resident
If in Japan less than 5 of the last 10 years, you are a "non-permanent resident" taxed on Japan income plus foreign income remitted to Japan.
Q: Do I report home country income?
Residents in Japan 5+ years of the last 10 are taxed on worldwide income. Those under 5 years are taxed on Japan income plus any foreign income remitted to Japan.
Q: Does Japan have tax treaties?
Yes, with over 70 countries to prevent double taxation. Check with the National Tax Agency or a professional.
※ This article is for informational purposes only. Please consult a qualified tax professional.
