Banking14 min read
Taxes in Japan for Foreigners: Income Tax, Residence Tax & Filing
Complete guide to taxes for foreigners in Japan. Income tax rates, residence tax, year-end adjustment, tax filing, and deductions you can claim.
Published: 1/16/2026•Updated: 1/16/2026
Key Takeaways
- Income tax: 5-45% progressive rates
- Residence tax: ~10% of previous year income
- Most employees don't need to file taxes
- Filing period: Feb 16 - Mar 15
- Leaving Japan? Pay remaining residence tax before departure
Types of Taxes for Foreigners in Japan
As a foreigner working in Japan, you'll encounter several taxes:
1. Income Tax (所得税)
• Progressive rates: 5% - 45%
• Deducted from salary monthly
• Year-end adjustment by employer 2. Residence Tax (住民税)
• ~10% of previous year's income
• Paid to your city/ward
• Billed June of following year 3. Consumption Tax (消費税)
• 10% on most goods/services
• 8% on food/beverages
• Already included in prices
• Progressive rates: 5% - 45%
• Deducted from salary monthly
• Year-end adjustment by employer 2. Residence Tax (住民税)
• ~10% of previous year's income
• Paid to your city/ward
• Billed June of following year 3. Consumption Tax (消費税)
• 10% on most goods/services
• 8% on food/beverages
• Already included in prices
Income Tax Rates (2026)
Progressive Tax Brackets:
| Income | Tax Rate |
|--------|----------|
| ~¥1.95M | 5% |
| ~¥3.3M | 10% |
| ~¥6.95M | 20% |
| ~¥9M | 23% |
| ~¥18M | 33% |
| ~¥40M | 40% |
| ¥40M+ | 45% |
Note: These are marginal rates. Your effective rate will be lower.
Example:
¥5,000,000 income → Effective rate ~10-12%
Tax Filing: When & How
Most Employees: No filing needed!
Your employer handles taxes through:
• Monthly withholding
• Year-end adjustment (年末調整) You MUST File (確定申告) If:
• Income from multiple sources
• Self-employed or freelancer
• Income over ¥20M
• Medical expenses over ¥100,000
• Want to claim deductions Filing Period: Feb 16 - Mar 15 Where: Local tax office or online (e-Tax) Language: Forms in Japanese only (but e-Tax has some English)
• Monthly withholding
• Year-end adjustment (年末調整) You MUST File (確定申告) If:
• Income from multiple sources
• Self-employed or freelancer
• Income over ¥20M
• Medical expenses over ¥100,000
• Want to claim deductions Filing Period: Feb 16 - Mar 15 Where: Local tax office or online (e-Tax) Language: Forms in Japanese only (but e-Tax has some English)
FAQ
Frequently Asked Questions
Income tax: Yes, from your first paycheck. Residence tax: No, it's based on previous year's income. You'll pay residence tax starting your second year.
You must pay all outstanding residence tax before leaving. Your employer will handle remaining income tax through final paycheck withholding.
Yes! If you've overpaid (common in first year) or have eligible deductions (medical expenses, dependents), file a return to claim refund.
Last updated: January 16, 2026