📈 Japan Income Tax Calculator

National income tax (所得税, shotokuzei) is Japan’s federal income tax, charged on the calendar year and filed by March 15 of the following year. The rate structure is progressive from 5% to 45% across seven brackets. Every taxpayer gets a basic deduction (基礎控除) of 480,000 yen, employees get an employment-income deduction (給与所得控除), and social insurance premiums, dependents, and a range of special deductions reduce taxable income further.

For salaried employees the employer withholds income tax every month and the year-end adjustment (年末調整) settles the difference in December, so most employees never file a return. Self-employed people, freelancers and those with multiple income streams must file 確定申告 (final tax return) by March 15, paying their tax in two or three instalments through the year. Resident tax on the same income is a separate local levy — estimate it with the resident tax calculator.

The calculation: total income (総所得) → subtract employment-income deduction (salary) or expenses (self-employed) → subtract basic deduction 480,000, social insurance premiums, dependent deductions and any special deductions (iDeCo, mortgage, medical) → the result is taxable income (課税所得) → apply the progressive table → add the 2.1% reconstruction surcharge → subtract tax credits. The standard tables below are the seven brackets.

Employment income deduction. Part of your salary is excluded from tax before the progressive rate applies (table effective from 2020).

The reconstruction surcharge (復興特別所得税) adds 2.1% of the income-tax amount for 2013-2037. The calculator also shows your effective tax rate — total tax divided by gross income — which is the number that actually matters when comparing jobs. Resident tax on the same income is a separate 10%-ish levy — see the resident tax calculator. All national rates, the 480,000-yen basic deduction, and the employment-income deduction table are taken from the National Tax Agency (NTA, 国税庁) published guidance for the 2026 tax year — see Sources.

1. Choose employment type: salary or self-employment / freelance.
2. Enter your annual gross income in yen.
3. Enter annual social insurance premiums (from your 源泉徴収票 or invoices).
4. Add dependents and optional deductions (iDeCo, mortgage, medical) as relevant.
5. Click Calculate to see taxable income, income tax, surcharge and effective rate.

How is Japan's income tax different from the US or UK?

Japan uses a flat-set progressive table with seven brackets (5-45%) and a uniform 480,000 basic deduction, plus a 2.1% reconstruction surcharge. There is no standard married-filing-joint; each person files separately, though a spouse’s low income gives a deduction.

Do employees need to file a tax return?

Usually no — the employer’s year-end adjustment (年末調整) settles your annual tax in December. File 確定申告 if you have other income over 200,000 yen, claim medical/donation deductions, or your employer didn’t complete the adjustment.

What is the reconstruction surcharge?

復興特別所得税 adds 2.1% of your income tax for 2013-2037 to fund disaster reconstruction. It is already folded into the monthly withholding tables, but when you estimate yearly tax you must add it yourself — this calculator does.

What deductions do most people miss?

Medical expenses over 100,000 yen in a year, iDeCo (max 68,000-69,000 yen/month depending on employer plan), donations, and the spouse special deduction when your spouse’s income is under 1.5 million. These directly cut taxable income.

How is freelance income taxed?

Freelancers deduct business expenses instead of the employment-income deduction, then pay estimated tax in two instalments (July and November) plus the final return by March 15. The same progressive table applies to the net profit.

Is there a tax-free threshold?

With the 480,000 basic deduction and the employment-income deduction, a single employee’s national income tax effectively starts around 1,000,000+ yen of gross salary; below that the tax is zero or minimal. Resident tax has a lower threshold (see the resident tax calculator).

This tool is for informational purposes only and does not constitute financial advice. Consult a qualified financial professional for advice specific to your situation.

For most employees the effective rate is far below the bracket rate: a 6,000,000-yen salary with the standard deductions lands in the 20% bracket, but after deductions the tax is closer to 5.5-7% of gross. iDeCo contributions and medical expenses over 100,000 yen are two of the biggest overlooked deductions — both lower taxable income directly. The salary vs. freelancer comparison is where this tool shines: run both and add resident tax to see the real difference. If you already know last year’s tax, remember the standard 480,000 basic deduction — it makes a 4,000,000-yen salary almost tax-free at the national level. Check your monthly withholding against this yearly estimate with the withholding calculator.