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Take-Home Pay Calculator: Japan

Salary after income tax and social contributions in 15 countries, from each authority's own published rules. Regional tax, pensions and student loans included.

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Japan: three sets of rules running at once

Calendar 2026 has three parameter vintages live simultaneously, and mixing them is the standard way to get Japanese tax wrong. Income tax follows the Reiwa 8 reform, which lifted the employment income deduction to a minimum of ¥740,000 and the basic deduction to ¥1,040,000. Add those together and you get ¥1,780,000, the salary at which income tax first becomes due. Inhabitant tax kept its own basic deduction of ¥430,000, unchanged, so the national and local taxable incomes now diverge by as much as ¥610,000 while the adjustment credit that exists to compensate still only recognises ¥50,000 of the gap.

Income tax itself is the simple part: a quick-calculation table of rate minus a constant, applied to taxable income rounded down to ¥1,000, then multiplied by 1.021 for the reconstruction surtax. From 2027 that surtax drops to 1.1% and a 1% defence surtax replaces the difference, so the combined charge does not move.

Inhabitant tax is 10%, six points municipal and four prefectural, plus a flat ¥5,000 that includes the ¥1,000 forest environment tax. It is charged on the previous year's income and collected from June to May, which is why a first-year employee pays none at all. Social insurance is split evenly with the employer and includes a 0.23% child-rearing support levy that is new from April 2026, collected as a surcharge on the health insurance premium and split the same way, so anything still running on FY2025 rates is short by that line.

Worked example: 4,500,000 yen in Tokyo, age 35, no dependants

Employment income and basic deductions of ¥2,380,000 leave ¥1,458,000 taxable after social insurance.

Income tax ¥72,900 plus the 2.1% reconstruction surtax ¥1,530. Inhabitant tax ¥209,200. Social insurance ¥661,044: health ¥226,800, pension ¥411,744 and employment insurance ¥22,500.

Take-home: ¥3,555,326 a year, ¥296,277 a month. Your employer pays ¥676,800 on top, taking the true cost of the job to ¥5,176,800.

For how the calculation works, the formula behind it and what it leaves out, see the full guide.

Data sources

  • Japan: income tax, the reconstruction surtax, inhabitant tax and social insurance, 2026

    Effective 2026-01-01 to 2026-12-31 · retrieved 2026-08-29

    Calendar year 2026. Three parameter vintages are live in Japan at once and mixing them is the usual error: income tax here uses the Reiwa 8 reform, which raised the employment income deduction minimum to 740,000 yen and the basic deduction to 1,040,000 yen, and not the Reiwa 7 figures still shown on some older National Tax Agency pages. The reconstruction surtax of 2.1% still applies; from 2027 it falls to 1.1% and a 1% defence surtax replaces the difference, leaving the combined 2.1% multiplier unchanged. There is no fixed-amount tax cut in 2026: that was a one-off for 2024. The child-rearing support levy of 0.23%, new from April 2026, is included and is the item most often missing from a calculator ported from FY2025. Inhabitant tax is legally charged on the previous calendar year's income and collected from June to May; this models it on the current year on a steady-state assumption, which is right for someone whose pay is stable and wrong in the year they start work, change income sharply or leave Japan. Not modelled: bonuses as a separate base, so the annual salary is spread evenly over twelve months and the separate bonus caps never bind; the spouse deduction and the age categories of the dependant deduction, so every dependant is treated as a general dependant; municipalities that levy above the standard rate; the non-taxable thresholds for grade 2 and grade 3 municipalities, only grade 1 being modelled; and workers accident compensation insurance, which is rated by industry.

    How we checked these figures

    Premiums are computed on actual monthly remuneration clamped to the statutory floors and caps rather than on the standard remuneration grade tables, which the two insurers publish only as PDF and spreadsheet files. Within a grade the error is bounded by the width of one band and the caps, which is where the money is, are modelled exactly. The engine is pinned to the authorities' own component figures rather than to any end-to-end table, because no Japanese authority publishes one: the National Tax Agency worked example of 974,000 yen of tax on 7,000,000 of taxable income, the association's Tokyo premiums at a 300,000 standard monthly remuneration, and the 1,780,000 yen threshold at which the reformed deductions cancel out to zero tax. Payroll vendors do publish gross-to-net tables but disagree with each other by up to 8% at higher salaries, so none is used as an oracle.

    Current

This calculator in other countries

Each country has its own rates, thresholds and rules, and its own page with the official sources they came from.

CentExact Editorial · Research & verification

Every CentExact calculator is built from the published finance formula, tested against spreadsheet, lender and tax-authority figures, and reviewed when the underlying rates or rules change.

How we build and test our calculators

Figures are estimates derived from published rates and rules, current at the review date shown at the top of this page and taken from the sources listed below. Rates, fees and thresholds change; always confirm current values with the official source before relying on a result.