How to use Japan Income Tax Calculator
This Japan income tax calculator estimates your national income tax (shotokuzei) based on your annual income and the calendar year you select (2023, 2024, 2025 or 2026). It applies the ¥480,000 basic deduction, then taxes your income through Japan’s seven progressive brackets (5% to 45%), and shows your effective rate, marginal rate and a bracket-by-bracket breakdown plus estimated take-home. Important: this models national tax only — a 2.1% reconstruction surtax and a separate ~10% local inhabitant tax apply on top and are explained below.
- Select your calendar year (2023, 2024, 2025, or 2026) from the dropdown.
- Enter your annual gross income in yen.
- Keep the filing status as Individual — Japan taxes individuals, not couples.
- Click Calculate to see your national income tax, effective rate and marginal rate.
- Review the bracket-by-bracket breakdown, then multiply the tax by 1.021 for the reconstruction surtax and add ~10% local inhabitant tax for your full burden.
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How Japan’s tax brackets work
Japan uses a progressive national income tax. After the ¥480,000 basic deduction, only the income within each bracket is taxed at that rate. For example, a ¥5,000,000 income becomes ¥4,520,000 taxable: 5% on the first ¥1,950,000 (¥97,500), 10% on the next ¥1,350,000 (¥135,000) and 20% on the remaining ¥1,220,000 (¥244,000) — a total of ¥476,500 in national income tax, an effective rate of about 9.5% versus a 20% marginal rate.
| Taxable Income (¥) | 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% |
Basic deduction and employment income deduction
Two deductions reduce a salaried worker’s taxable income in Japan. The basic deduction (kiso kōjo) of ¥480,000 applies to almost everyone with income under ¥24,000,000 and is modelled here. The employment income deduction (kyūyo shotoku kōjo) is a separate, income-varying allowance for salary earners (from about ¥550,000 up to a ¥1,950,000 cap) and is not modelled for simplicity — so for salaried employees this calculator overstates taxable income and tax.
Reconstruction surtax and local inhabitant tax
On top of national income tax, two further charges apply. The Special Reconstruction Surtax adds 2.1% of your national income tax (not income), so the all-in national figure is the tax shown × 1.021. Separately, Local Inhabitant Tax (jūminzei) of roughly 10% of taxable income is levied by your prefecture and municipality on the prior year’s income. This calculator shows national tax only, so your true total burden is meaningfully higher than the headline number.
Effective versus marginal tax rate
Your effective tax rate is your total tax divided by total income — your true average. Your marginal rate is the rate on your next yen, set by the highest bracket you reach. On ¥5,000,000 income your marginal rate is 20%, but because the first ¥1,950,000 is taxed at just 5% and the basic deduction reduces taxable income, your effective national rate is only about 9.5%. Understanding the difference helps with decisions about bonuses and overtime.
Worked examples
Individual, ¥5,000,000 income, 2025
Inputs: ¥5,000,000 income
Result: ~¥476,500 national tax (taxable ¥4,520,000) · 9.5% effective · 20% marginal (before surtax/local tax)
Individual, ¥10,000,000 income, 2025
Inputs: ¥10,000,000 income
Result: ~¥1,605,600 national tax (taxable ¥9,520,000) · 33% marginal (before surtax/local tax)
Individual, ¥20,000,000 income, 2025
Inputs: ¥20,000,000 income
Result: ~¥5,012,000 national tax (taxable ¥19,520,000) · 40% marginal (before surtax/local tax)
Glossary
- Shotokuzei
- Japan’s national (income) tax, levied progressively from 5% to 45%.
- Basic deduction (kiso kōjo)
- A ¥480,000 deduction from income for taxpayers with total income under ¥24,000,000.
- Employment income deduction (kyūyo shotoku kōjo)
- A separate income-varying deduction for salaried workers; not modelled in this calculator.
- Reconstruction surtax
- A 2.1% surtax on the national income tax amount, levied 2013–2037.
- Local Inhabitant Tax (jūminzei)
- A ~10% local tax on taxable income levied by prefectures and municipalities, charged on the prior year’s income.
- Effective tax rate
- Total tax owed divided by total income — your true average tax rate.
- Marginal tax rate
- The tax rate applied to your next yen of income, set by the highest bracket you reach.
- Calendar tax year
- Japan’s tax year, running 1 January to 31 December.
Related reading
Frequently Asked Questions
Why use Japan Income Tax Calculator?
- Applies the ¥480,000 basic deduction (kiso kōjo) automatically
- Uses the NTA national brackets (5%, 10%, 20%, 23%, 33%, 40%, 45%)
- Compare the 2023, 2024, 2025 and 2026 calendar years with the year selector
- See your effective rate (actual tax ÷ income) and marginal rate (rate on your last yen)
- Transparent bracket-by-bracket breakdown of how each band is taxed
Common use cases
- Estimate your national income tax before filing your kakutei shinkoku return
- Understand how the ¥480,000 basic deduction lowers your taxable income
- See how the 2.1% reconstruction surtax and ~10% local inhabitant tax add to the total
- Compare your marginal bracket rate with your effective average rate
- Check an estimate for a prior calendar year
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