Japan Salary After Tax Calculator 2025-26 | Take Home Pay Calculator JPY

  • Adam
  • November 2, 2025

Calculate your salary after tax in Japan for 2025-26. Free take-home pay calculator with income tax, resident tax, and social insurance contributions. Latest NTA 2025 tax reform rates.

Japan Salary After Tax Calculator 2025-26

Calculate your take-home pay in Japan for the 2025-26 tax year. This comprehensive salary after tax calculator helps you determine your net income after income tax, social insurance contributions (health insurance, pension, unemployment insurance), and resident tax. Get accurate results based on the latest National Tax Agency (NTA) tax rates and 2025 tax reforms.

Salary After Tax Calculator

How to Use This Calculator

1 Enter Your Annual Gross Salary: Input your total annual income before any deductions in Japanese yen.
2 Select Your Prefecture: Choose your prefecture, as health insurance rates vary by location. This affects your total social insurance contributions.
3 Select Your Age: Choose your age group as long-term care insurance applies to employees aged 40-64, affecting your social insurance calculations.
4 Select Your Pay Period: Choose how frequently you receive payment (annual, monthly, semi-monthly, or weekly).
5 Click Calculate: Press the "Calculate Take-Home Pay" button to see your detailed breakdown of income tax, social insurance contributions, resident tax, and net income.

Understanding Japan Income Tax 2025-26

Japan uses a progressive tax system where your income is taxed at different rates depending on your tax bracket. The National Tax Agency (NTA) administers the tax system. Additionally, all employees pay mandatory social insurance contributions (health insurance, pension, unemployment insurance), and some are subject to long-term care insurance. Local resident taxes are also applied.

2025 Tax Brackets (Updated for Tax Reform)

The 2025 tax reform brings important changes to Japan's tax system. The following are the income tax brackets effective for the 2025 tax year:

2025-26 National Income Tax Rates
• 5% on taxable income up to ¥1,950,000
• 10% on ¥1,950,001 to ¥3,300,000
• 20% on ¥3,300,001 to ¥6,950,000
• 23% on ¥6,950,001 to ¥9,000,000
• 33% on ¥9,000,001 to ¥18,000,000
• 40% on ¥18,000,001 to ¥40,000,000
• 45% on income over ¥40,000,000

Updated Basic Deduction (2025 Tax Reform)

The 2025 tax reform significantly increased the basic deduction. For those with total annual income of ¥23.5 million or less, the basic deduction increased from ¥480,000 to ¥580,000. Additionally, special temporary deductions apply in 2025-2026:

2025 Basic Deduction Structure
Permanent Change (from 2025):
Basic deduction increased from ¥480,000 to ¥580,000 for those with total income under ¥23.5 million

Temporary Special Deduction (2025-2026 only):
• Income ≤ ¥1.32M: Additional ¥370,000 (total ¥950,000)
• Income ¥1.32M - ¥3.36M: Additional ¥300,000 (total ¥880,000)
• Income ¥3.36M - ¥4.89M: Additional ¥100,000 (total ¥680,000)
• Income ¥4.89M - ¥6.55M: Additional ¥50,000 (total ¥630,000)
• Income over ¥6.55M: Permanent ¥580,000

Formula: \( \text{Taxable Income} = \text{Gross Income} - \text{Basic Deduction} - \text{Employment Income Deduction} \)

Employment Income Deduction 2025

Employees receive an employment income deduction, which is calculated based on salary income level:

Employment Income Deduction Calculation
• Salary up to ¥1,625,000: Deduction = Salary × 40% (minimum ¥550,000)
• Salary ¥1,625,001 to ¥1,800,000: Deduction = ¥650,000
• Salary over ¥1,800,000: Deduction = Salary - ¥1,150,000 (maximum ¥2,200,000)

2025 Increase for Lower Earners:
Those earning less than ¥1,900,000 receive an additional deduction, resulting in tax savings of approximately ¥5,000 annually

Social Insurance Contributions 2025

All employees pay mandatory social insurance contributions. The following rates apply from April 2025:

Social Insurance Contribution Rates (2025)
Health Insurance (varies by prefecture):
Tokyo: 4.955% | Osaka: 4.72% | Kanagawa: 4.77%
Applied on monthly salary up to ¥1,390,000 maximum

Welfare Pension (Kōsei Nenkin):
Rate: 9.15%
Applied on monthly salary up to ¥650,000 maximum

Unemployment Insurance:
Rate: 0.55% (reduced from 0.60% from April 2025)

Long-term Care Insurance (ages 40-64):
Rate: 0.795% (applied from March 2025)

\( \text{Total Social Insurance} = \text{(Health + Pension + Unemployment)} \)
\( + \text{Long-term Care Insurance (if applicable)} \)
\( \text{Maximum Applied on: } ¥650,000 \text{ monthly for pension; } ¥1,390,000 \text{ for health} \)

Resident Tax

Japan's resident tax (住民税) consists of prefectural and municipal taxes. The standard combined rate is approximately 10% of taxable income (5% prefectural + 5% municipal). Some prefectures have slightly different rates.

Resident Tax Calculation
Combined rate: Approximately 10% (5% prefectural + 5% municipal)
Applied on: Taxable income after national deductions

Formula: \( \text{Resident Tax} = \text{Taxable Income} \times 0.10 \)

Note: Resident tax is typically collected through payroll deduction starting the month after salary is paid.

Take-Home Pay Calculation Method

Your net income or take-home pay is calculated by subtracting all deductions from your gross salary:

Net Income Formula
\( \text{Net Income} = \text{Gross Salary} - \text{Income Tax} - \text{Social Insurance} - \text{Resident Tax} \)

Where:
• Gross Salary = Your total annual income
• Income Tax = Tax based on progressive brackets after deductions
• Social Insurance = Health, pension, unemployment, long-term care insurance
• Resident Tax = Approximately 10% of taxable income

Effective Tax Rate

Your effective tax rate is your total tax and contributions divided by your gross income. This is lower than your marginal tax rate (the rate applied to your last dollar of income) due to the progressive nature of the Japanese tax system:

Tax Rate Formulas
\( \text{Effective Tax & Contribution Rate} = \frac{\text{Total Tax + Social Insurance}}{\text{Gross Income}} \times 100\% \)

\( \text{Marginal Tax Rate} = \text{Income Tax Rate at Your Bracket} + \text{Resident Tax Rate (10%)} \)

Frequently Asked Questions

What is the difference between gross salary and net salary in Japan?
Gross salary is your total income before any deductions, while net salary (take-home pay) is what remains after income tax, social insurance contributions (health, pension, unemployment insurance), resident tax, and any other deductions. Your net salary is the actual amount paid to your bank account.
What changed in the 2025 tax reform?
The 2025 tax reform includes: (1) increased basic deduction from ¥480,000 to ¥580,000 (permanent), (2) special temporary increases in basic deduction for lower earners in 2025-2026, (3) increased employment income deduction for those earning under ¥1.9 million, and (4) new special deduction for certain dependents aged 19-22. Most workers earning ¥2-25 million yen will see tax reductions of ¥20,000-30,000.
How much tax will I pay on a ¥5,000,000 salary?
For a salary of ¥5,000,000 in 2025: After employment income deduction and basic deduction, taxable income is approximately ¥3,550,000. Income tax = approximately ¥513,000. Social insurance (health 4.955% + pension 9.15% + unemployment 0.55% + long-term care 0.795% for ages 40-64) = approximately ¥756,000. Resident tax (10%) = approximately ¥355,000. Total deductions ≈ ¥1,624,000. Take-home pay ≈ ¥3,376,000. This is an estimate; actual amounts depend on personal circumstances and bonuses.
Do I have to pay long-term care insurance?
Yes, if you're aged 40-64. Long-term care insurance (介護保険) is mandatory for employees in this age group. The rate from March 2025 is 0.795% of salary, split between employee and employer. This provides coverage for long-term care services in retirement. Those over 65 have different arrangements through their local municipality.
What is the employment income deduction?
The employment income deduction (給与所得控除) is a standard deduction for salaried employees. For those earning up to ¥1,625,000, it's 40% of salary (minimum ¥550,000). For higher earners, the percentage decreases. The deduction reduces your taxable income before applying income tax brackets. The 2025 reform slightly increased deductions for lower earners.
What is the resident tax in Japan?
Resident tax (住民税) is collected locally and consists of prefectural (5%) and municipal (5%) taxes, totaling approximately 10% of taxable income. It's deducted from monthly salary. Resident tax is also subject to the same deductions as income tax (basic deduction, employment income deduction, etc.).
When is the unemployment insurance rate lower?
From April 2025, the unemployment insurance rate decreased to 0.55% (from 0.60%). This applies to all employees. The reduction applies to the employee's share, while the employer may have a different rate. This small reduction affects both salary deductions and employer contributions.
Can I reduce my taxable income in Japan?
Yes, you can reduce your taxable income through various deductions including: employment income deduction (automatic for salaried workers), basic deduction, spousal deduction, dependent deductions, medical expense deduction, social insurance premium deduction, and contributions to pension plans. Keep receipts and records for verification by the tax authority.
How accurate is this salary calculator?
This calculator provides estimates based on 2025-26 NTA tax brackets, the 2025 tax reform changes, and social insurance rates. It does not account for bonuses, special deductions, dependents, or other personal circumstances. Bonuses are typically taxed separately with different withholding rules. For precise calculations specific to your situation, use the NTA's tax simulator or consult a tax professional.

Official Sources & Important Links

All calculations are based on official 2025-26 rates from the National Tax Agency (NTA) and Japanese government:

Tax Simulation Tools:

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