Japan Salary Calculator

Progressive Tax Rate Structure:

• • Below 1.95 million JPY: 5%
• • 1.95-3.3 million JPY: 10%
• • 3.3-6.95 million JPY: 20%
• • 6.95-9 million JPY: 23%
• • 9-18 million JPY: 33%
• • 18-40 million JPY: 40%
• • Over 40 million JPY: 45%

Important Note: Japan adopts a progressive tax system, where only the amount exceeding each threshold is taxed at the higher rate.

Composition of Resident Tax:

• • Income Component: Generally 10% (4% Prefectural Tax + 6% Municipal Tax)
• • Fixed Component: Approximately 5,000 JPY annually
• • Basic Deduction: 430,000 JPY

Calculation Feature: Resident tax is calculated based on the previous year's income. New employees usually do not need to pay resident tax in their first year.

Major Insurance Programs:

• • Employee Pension Insurance: 18.3% (shared equally by employer and employee)
• • Health Insurance: Approximately 10% (shared equally by employer and employee)
• • Employment Insurance: 0.6% (0.3% borne by employee)
• • Workers' Accident Compensation Insurance: Fully borne by the employer

Coverage Scope: Covers medical care, pension, unemployment, and other protections, and is an important part of Japan's social security system.

Major Deduction Items:

• • Basic Deduction: 480,000 JPY
• • Salary Earner Deduction: 550,000 JPY
• • Spouse Deduction: Up to 380,000 JPY
• • Dependent Deduction: 380,000 JPY per dependent
• • Life Insurance Premium Deduction: Up to 120,000 JPY

Processing Time: Usually conducted from November to December each year, which can effectively reduce tax burden.

Bonus Tax Calculation:

• • Bonuses are taxed separately and not combined with monthly salary
• • Calculated using a specific tax rate table after deducting social insurance
• • The base for bonus tax rate is 6 times the previous month's salary
• • Amounts exceeding the base are taxed at a higher rate

Optimization Suggestion: Reasonably arranging the timing and amount of bonus payments can effectively reduce tax burden.

Legal Tax Saving Methods:

• • iDeCo Individual Pension: Up to 816,000 JPY annually
• • NISA Tax-Free Investment: Up to 1.2 million JPY annually
• • Housing Loan Tax Reduction: Up to 13 years
• • Medical Expense Deduction: Amount exceeding 100,000 JPY
• • Donation Deduction: Supporting charitable causes

Long-Term Planning: Reasonable use of various deduction systems can significantly reduce tax burden and increase savings.