How pay after tax works in Japan
Japan layers three main charges on employment income: national income tax on a progressive 5% to 45% scale, a special reconstruction surtax of 2.1% on that tax, and local inhabitant tax of roughly 10% set by your prefecture and municipality. A generous employment-income deduction reduces the taxable base before any of these apply.
Social insurance is substantial and covers health, pension, employment and, for older workers, long-term care, with contributions shared with your employer. Because inhabitant tax is based on the previous year's income, the calculator estimates it alongside the current-year income tax and social insurance to give a realistic net salary (tegotori).
What this calculator works out
- National income tax on the progressive scale
- The 2.1% special reconstruction surtax
- Local inhabitant tax of about 10%
- Social insurance and the employment-income deduction