National income tax 5–45% · reconstruction surtax 2.1% · residence tax 10% · health 4.925% · pension 9.15% · basic ￥580,000. Nationwide NTA + shakai hoken employee withholding for FY2026 tax year (Apr 2026 – Mar 2027), with live ladders from the same engine as our Japan salary calculator.
By Sammy S. · Founder · AuthorUpdated for 2026
Income tax
5–45%
Surtax
2.1%
Residence
10%
Health
4.925%
Pension
9.15%
Basic
￥580,000
Japan withholds national income tax, reconstruction surtax, and employee social insurance (shakai hoken) from most salary and wage earners through their employer via source withholding (源泉徴収). Residence tax (住民税) is billed separately from June based on prior-year income. Employer social insurance contributions are paid on top of salary and do not reduce your take-home.
National income tax uses progressive NTA brackets on taxable income. Residence tax is a local tax at 10% of taxable income. Before any tax applies, gross salary is first reduced by the employment income deduction (給与所得控除), basic deduction (¥580,000), and deductible social insurance contributions. Shakai hoken is calculated as a percentage of gross income.
Rates on this hub come from NTA published tables for FY2026 (April 2026–March 2027) and the same engine as our Japan salary calculator. Confirm against your payslip and year-end adjustment (年末調整).
National income tax brackets run from 5% on the first ¥1,950,000 of taxable income through 45% above ¥40,000,000. Only the income inside each band is taxed at that band's rate. The reconstruction surtax adds 2.1% on top of national income tax.
Residence tax is 10% of taxable income (municipal 6% + prefectural 4%), per Ministry of Internal Affairs. Actual residence tax is billed from June of the following year based on prior-year income. Our ladder uses a same-year estimate on the same taxable base as national tax for planning purposes.
The basic deduction is ¥580,000 from the 2025 NTA reform (up from ¥480,000), continuing in FY2026 for total income ≤ ¥24M. Each qualifying dependent reduces taxable income by ¥380,000.
FY2026 brought major shakai hoken rate changes. Health insurance rates fell across all 47 prefectures for the first time in 34 years — Tokyo Kyokai Kenpo employee rate down from 4.955% to 4.925%. Employment insurance was cut from 0.6% to 0.55% employee (general industry). A new child-support levy (子ども・子育て支援金) launched at 0.115% employee for all Kyokai Kenpo enrollees — rising to 0.44% total by FY2028. Long-term care (age 40+) rose from 0.795% to 0.81% employee.
Pension insurance is 9.15% employee, capped at ¥650,000/month standard monthly remuneration (maximum annual contribution ¥713,700). It has been fixed at 9.15% since September 2017.
For Tokyo under-40 workers, the rate cuts and new levy net to zero change in total social insurance burden: 14.74% of gross. Age 40+ total rises slightly to 15.55%.
Living in Tokyo, Osaka, Kyoto, or elsewhere does not change NTA income tax brackets or reconstruction surtax for the same gross salary. Residence tax rates are set by municipalities and vary slightly (most use the standard 10% of taxable income). Health insurance rates vary by prefecture under Kyokai Kenpo (Tokyo: 4.925%; range: 9.21%–10.55% total across 47 prefectures).
Cost of living — rent, transport, childcare — still varies sharply by city. Use Tax Insights for payroll math, and our city salary guides for lifestyle context.
Bonuses (賞与), dependent deductions, and iDeCo can change your end-of-year position even when the primary-salary withholding looks "right" on each payslip. Year-end adjustment (年末調整) in November–December reconciles these.
Tax Insights is the editorial hub: NTA facts, salary ladders, methodology, glossary, FAQs, and sources.
The Japan calculator lets you change age 40+ toggle, dependents, bonus, and other deductions for a personalised figure from the same engine.
Both surfaces use the same national income tax + surtax + residence + shakai hoken engine.
Same order of operations as the Japan salary calculator methodology — deduct shakai hoken and income deductions, then apply national income tax, reconstruction surtax, and residence tax.
1.Start with gross employment income
Your annual employment income before deductions. Employer social insurance contributions are paid on top and are not deducted from your take-home.
2.Apply income deductions
Employee social insurance is deductible from taxable income. The employment income deduction (給与所得控除) follows the NTA table. Basic deduction is ¥580,000 from the 2025 reform (total income ≤ ¥24M). Each qualifying dependent reduces taxable income by ¥380,000.
3.Calculate national income tax
Progressive rates from 5% on the first ¥1.95M of taxable income up to 45% above ¥40M, per NTA published brackets.
4.Reconstruction surtax & residence tax
The 2.1% special reconstruction income surtax applies to national income tax. Residence tax (住民税) is a local tax at 10% of taxable income (municipal 6% + prefectural 4%), per Ministry of Internal Affairs. Actual residence tax is billed from June based on prior-year income; this calculator uses a same-year estimate on the same taxable base.
5.Employee shakai hoken (FY2026 rates)
FY2026 employee rates (Tokyo Kyokai Kenpo): health insurance 4.925% (down from 4.99%), pension 9.15% capped at ¥650,000/month, employment insurance 0.55% (down from 0.6%), child-support levy 0.115% (NEW — all enrollees, from April 2026), and long-term care 0.81% from age 40 (up from 0.795%). Net under-40 total unchanged at 14.74%; 40+ total rises slightly to 15.55%.
6.Take-home pay
Effective rate = total deductions ÷ gross. Marginal income tax rate is the NTA band rate on your next yen of taxable income.
Pure-salary employee, under 40, 0 dependents, FY2026. Live engine output:
Gross
￥6,000,000
National tax
￥192,060
Surtax
￥4,033
Residence tax
￥289,560
Shakai hoken
￥884,400
Take-home
￥4,629,947
≈ ￥385,829/month net · Run your own numbers
| Constant | Value |
|---|---|
| Basic deduction (2025 reform) | ¥580,000 |
| Dependent deduction | ¥380,000 each |
| Reconstruction surtax | 2.1% of national income tax |
| Residence tax | 10% of taxable income (municipal 6% + prefectural 4%) |
| Health insurance (employee, Tokyo) | 4.925% |
| Pension (employee) | 9.15% capped at ¥650k/month |
| Employment insurance (employee) | 0.55% |
| Child-support levy (NEW 2026) | 0.115% — all health insurance enrollees |
| Long-term care (age 40+) | 0.81% |
| Top marginal rate | 45% above ¥40M taxable |
Keeping the ladder comparable means omitting items that belong in a full compensation model:
Short definitions aligned with NTA terminology used on this hub and the calculator. Example figure: ￥6,000,000 gross is our default worked example.
Japan's national tax authority. Sets income tax brackets, employment income deduction tables, basic deduction amounts, and administers year-end adjustment (年末調整) and final tax returns. The NTA Private Sector Salary Survey (民間給与実態統計調査) is the definitive source for average Japanese salary data.
Mandatory social insurance for employees. Covers: health insurance (健康保険), employees' pension insurance (厚生年金), employment insurance (雇用保険), and (from age 40) long-term care insurance (介護保険). FY2026 adds a child-support levy (子ども・子育て支援金). Employee and employer each contribute separately.
Local tax paid to your municipality (6%) and prefecture (4%) — 10% of taxable income for the income-based portion. Calculated from prior-year income; withheld from salary from June. Includes a ¥5,500/year per-capita levy (均等割) not modelled here.
Monthly income tax withholding by employers from salary. Approximated using the NTA simplified withholding table. Adjusted at year-end adjustment or via final tax return. Most company employees pay the correct amount via this system without filing a return.
Annual reconciliation of withheld income tax against actual liability, accounting for all deductions, dependents, and insurance premiums. Completed by employers in November–December. A refund or additional collection is reflected in the December payslip for most salaried workers.
Standard deduction from taxable income — ¥580,000 from the 2025 NTA reform (up from ¥480,000), continuing in 2026 for total income ≤ ¥24M. Applied automatically to all resident taxpayers within the income limit.
Statutory deduction based on gross salary, replacing itemised expense claims for salaried workers. Ranges from ¥650,000 (≤ ¥1.8M gross) to ¥1,950,000 (≥ ¥8.5M gross). Applied before the basic deduction and before social insurance deductions.
A standardised salary bracket used to determine pension and health insurance contributions. Capped at Grade 32 (¥650,000/month) for pension, meaning contributions do not rise above that ceiling regardless of actual salary.
Annual wage bargaining between major companies and trade unions held each spring. Shuntō outcomes in 2024 and 2025 produced Japan's highest average wage increases in over 30 years (~5%), driving the record ¥4.78M average salary figure in the 2024 NTA survey.
Semi-annual cash payments typically paid in summer (June/July) and winter (December). Taxed via a separate NTA withholding table based on the prior month's regular salary. Full social insurance contributions apply, with pension capped at ¥1,500,000 per bonus payment.
The NTA tax rate applied to your next yen of taxable income. At ¥8M gross, the marginal national rate is typically 20% (the ¥3.3M–¥6.95M taxable band). Your effective (average) rate is always lower because lower-rate bands apply first.
A new levy introduced from April 2026. Collected via the health insurance mechanism at 0.115% employee (0.23% total including employer). Applies to all Kyokai Kenpo health insurance enrollees regardless of age. Rate rises to 0.44% total by FY2028 under current legislation.
Single employee — national income tax + surtax + residence tax + shakai hoken (under-40, 0 dependents).
Japan @ ￥6,000,000
￥4,629,947
National ￥196,093 · Residence ￥289,560 · Shakai ￥884,400 · 22.8% effective
Japan @ ￥10,000,000
￥7,278,559
National ￥829,011 · Residence ￥619,730 · Shakai ￥1,272,700 · 27.2% effective
Single employee, under-40, 0 dependents. Effective % is (national + surtax + residence + shakai hoken) ÷ gross.
| Gross | National+surtax | Residence | Shakai hoken | Take-home | Eff. % |
|---|---|---|---|---|---|
| ￥3,000,000 | ￥50,938 | ￥99,780 | ￥442,200 | ￥2,407,082 | 19.8% |
| ￥4,000,000 | ￥81,190 | ￥159,040 | ￥589,600 | ￥3,170,170 | 20.7% |
| ￥5,000,000 | ￥129,463 | ￥224,300 | ￥737,000 | ￥3,909,237 | 21.8% |
| ￥6,000,000 | ￥196,093 | ￥289,560 | ￥884,400 | ￥4,629,947 | 22.8% |
| ￥8,000,000 | ￥453,651 | ￥435,910 | ￥1,160,900 | ￥5,949,539 | 25.6% |
| ￥10,000,000 | ￥829,011 | ￥619,730 | ￥1,272,700 | ￥7,278,559 | 27.2% |
| ￥12,000,000 | ￥1,249,362 | ￥808,550 | ￥1,384,500 | ￥8,557,588 | 28.7% |
| ￥15,000,000 | ￥2,110,278 | ￥1,091,780 | ￥1,552,200 | ￥10,245,742 | 31.7% |
| ￥20,000,000 | ￥3,700,756 | ￥1,563,830 | ￥1,831,700 | ￥12,903,714 | 35.5% |
NTA progressive rates on taxable income for FY2026 — each rate applies only to income inside that band.
| Rate | Range |
|---|---|
| 5% | First ¥1,950,000 |
| 10% | ¥1,950,000–¥3,300,000 |
| 20% | ¥3,300,000–¥6,950,000 |
| 23% | ¥6,950,000–¥9,000,000 |
| 33% | ¥9,000,000–¥18,000,000 |
| 40% | ¥18,000,000–¥40,000,000 |
| 45% | Above ¥40,000,000 |
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NTA income tax + surtax + residence tax + shakai hoken with age 40+ toggle
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NTA income tax, residence tax, shakai hoken explained
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