Japan Salary Calculator ๐ฏ๐ต
Income Tax + Residence Tax + Social Insurance
๐ฏ๐ต Japan Net Pay (Take-Home)
Japanese salary calculation involves deducting <b>social insurance (pension/health)</b> first, then applying <b>income tax and residence tax</b> on the taxable income after various deductions.
Tax rates from 5% to 45% are applied based on the taxable income bracket. (Tax rate increases rapidly as income increases)
- Under 1.95M yen: 5%
- Under 3.3M yen: 10%
- Under 6.95M yen: 20% (Common)
- Under 9.0M yen: 23%
- Over 40M yen: 45% (Highest rate)
* Reconstruction Special Income Tax (2.1%) is additionally added.
โ ๏ธ Note: The items below are NOT money taken from your paycheck! They are 'computational deduction benefits' subtracted from your salary when calculating tax. (See right table for actual payments)
- A. Employment Income Deduction (Deemed Expenses)Similar to Korea's Employment Income Deduction
Considering the 'dignity maintenance' expenses of office workers (suits, meals, etc.), this is the largest deduction that automatically subtracts a certain amount from your salary without proof of actual expenditure. If your salary exceeds 8.5 million yen, the cap is fixed at 1.95 million yen.
Annual Income Deduction Formula 1.625M yen or less 550,000 yen (Min) 1.8M yen or less Income ร 40% - 100k 3.6M yen or less Income ร 30% + 80k 6.6M yen or less Income ร 20% + 440k 8.5M yen or less Income ร 10% + 1.1M Over 8.5M yen 1.95M yen (Cap fixed) - B. Basic Deduction
A basic personal deduction applied to all taxpayers. If total income is 24 million yen or less, a flat 480,000 yen is deducted.
- C. Social Insurance Premium Deduction
All premiums for Employee Pension, Health Insurance, and Employment Insurance taken from your salary are excluded from income when calculating tax. Since it's a significant amount, the tax-saving effect is large.
๐งฎ How is Net Pay Calculated?
Net Pay = Gross Pay - (Social Insurance + Income Tax + Residence Tax)
First, your 'Standard Monthly Remuneration' grade is determined to deduct Pension (9.15%), Health (5%), and Employment (0.6%). Roughly 15% of your salary disappears here first.
(Total Salary - Employment Income Deduction - Social Insurance - Basic Deduction 480k) = 'Taxable Income'
(Taxable Income ร Progressive Rate) - Progressive Deduction = Calculated Tax Final Income Tax = Calculated Tax ร 1.021 (Includes Reconstruction Tax)
(Taxable Income ร 10%) + 5,000 yen (Per Capita) = Residence Tax
๐ก Frequently Asked Questions (FAQ)
- Q. Is Residence Tax 0 yen in the first year of employment?
- Yes, that's correct. Japan's Residence Tax is based on 'previous year's income' and is billed from June of the following year. Therefore, new employees or those in their first year of moving to Japan pay 0 yen in residence tax, and it starts being deducted in full from the second year, reducing your take-home pay.
- Q. Are commuting expenses included?
- They are not included in the calculator results. Japanese companies usually pay commuting allowances separately, which are tax-free up to a limit of 150,000 yen per month. This means the total payment on your paycheck may be higher than the calculator result by the amount of your commuting expenses.
- Q. Is the tax on bonuses different?
- Yes, bonuses are taxed according to the 'Withholding Tax Table for Bonuses' differently from regular salary. Social insurance rates are the same, but they are deducted in full. Generally, more tax is taken than from a regular monthly paycheck, which is settled during the year-end adjustment (final tax return).