How to use Japan Tax Calculator
National Income Tax Rates
Taxable Income Tax Rate
less than 1.95 million yen 5% of taxable income
1.95 to 3.3 million yen 10% of taxable income minus 97,500 yen
3.3 to 6.95 million yen 20% of taxable income minus 427,500 yen
6.95 to 9 million yen 23% of taxable income minus 636,000 yen
9 to 18 million yen 33% of taxable income minus 1,536,000 yen
18 to 40 million yen 40% of taxable income minus 2,796,000 yen
more than 40 million yen 45% of taxable income minus 4,796,000 yen

 

Prefectural Income Tax Rates
Taxable Income Tax Rate
all 4% of taxable income

 

Municipal Income Tax Rates
Taxable Income Tax Rate
all 6% of taxable income

 

Prefectural Enterprise Tax Rates
(in case of self-employed persons)
Taxable Income Tax Rate
all 3% to 5% depending on the type of business

Use Japan Tax Calculator

How to use Japan Tax Calculator

How to use Japan Tax Calculator

Japan calculator is an electronic tool used to calculate Japan salary and Japan taxes easily with just one click. It is a convenient method to calculate pay and taxes. This calculator is used to estimate the total amount of salary after extracting the taxes that include inhabitant tax, social insurance, and health pensions. After excluding all these taxes, the original and net amount of salary can be easily calculated by a Japan salary calculator.

Take-home pay is a term that is used when the income is solely calculated after removing all the taxes. This calculator helps to compare the salaries in Japan. It helps to calculate the taxes being applied on the total income and the tax you need to return on your coming salary of the month.

What is the average income in Japan?

The average Japanese income is USD 29,798 per year. The average salary in Tokyo is ¥325,000 per month. If we are to calculate the net income being earned by an employee in Japan by using a Japan Salary Calculator, we put the complete salary of the employee and then we start excluding all the allowances added to it or taken out of it. Such as the average yearly income in Japan is ¥4,140,000 per year. The insurance given by him is ¥610,920 and then we exclude the income tax paid by him which is ¥222,000.

At last, we exclude the resident tax paid by him which is 314,900. After excluding all these taxes, the remaining amount left is the net income of the employee which is ¥2,992,180 per year. In this way, we can calculate the net income by using a Japan income tax calculator.

Try the other PAY RAISE CALCULATOR

How to calculate salary tax in Japan?

Japan Tax Calculator

The salary tax in Japan is calculated after taking into considerations the following terms;

Resident Status

The resident status gives the meaning of the tax status. This resident status directly affects the income tax allowance and the other taxpayers. Some of the people on which the tax is obligatory are;

  • Permanent Resident
    The people who have been living in Japan for more than five years are permanent residents. They have gained the citizenship of Japan. They are the true taxpayers.
  • Non-Permanent Resident
    The residents have lived in Japan for more than five years. They have to pay the income tax if they have earned the money in Japan or moved the money out of the country.
  • Non-Resident
    The residents have lived in Japan for less than a year and have worked in Japan. They have to pay the tax for working in Japan and not on the money coming out of the country. All these calculations are made on a Japanese income tax calculator.
  • Employment Income
    After discussing the resident status, the next point to consider is the employment income. There are several options on the Japan salary calculator, if you want to calculate your income after cutting off all the taxes you can easily calculate it. But if you want to calculate your hourly, weekly, and monthly wage you need to click the advanced button and then find the different salaries by using a single calculator. This is how diverse this tool is. All the functions are collectively present in a single tool. 

These are the steps by which you can calculate the total income tax in Japan swiftly by using a single calculator.

Japan Income Tax Calculation with advanced features

There are some advanced features to be considered for the income tax calculation.

  1. Pension contributions are the rates finalized in the current year for the pension. These rates define the pension amount being paid to the employees.
  2. There is a certain fixed pension or the percentage of the salary that is usually known as the default pension. This fixed amount can be altered if your employer is offering a different salary package.
  3. Each employee is taken with a social security rate. This is taken as a contribution from all of the employees.
  4. Every employee’s health is prioritized. For this purpose, each employee gives national health insurance. This rate is also fixed but can be altered from organization to organization.
  5. Your age is also calculated from the Japan Income tax calculation. There are certain laws that are changed by the age factor.
  6. Tax is also amended by taking notice of the number of days working in a year, the number of hours worked per year and the number of weeks worked per year.

By taking into account all these factors, an income tax is calculated. Japan income tax rates for the year 2013, according to a survey were 2.1%. added to the national tax. Tax paid by the non-residents was 20% with a 2.1% addition to it. The local inhabitants were to pay 10%. There are also certain taxes implemented on the employees such as the real property tax, inheritance and gift tax, social insurance deduction and allowances, and the last corporate income tax.

Conclusion 

A Japan calculator is also used to calculate the average salary in Japan for foreigners. In Japan, tax rates are reasonable and every citizen whether he is permanent or non-permanent would have to pay the tax rates that are fixed. Using the tax calculator is very easy. It is a diverse tool. There are many important features present in the calculator; it can be used as a simple calculator or an advanced calculator.

It has a normal view for short and simple calculation, and a full-page view, having some advanced features. It helps to calculate the salary and tax values of permanent residents, non-permanent residents, and non-resident. The person who is working as an employee and a person who is self-employed can also calculate his income by using this calculator.