Progressive income tax, 10% consumption tax, residence tax, and the unique year-end adjustment (年末調整).
| Taxable Income (¥) | Rate |
|---|---|
| ¥0 — ¥1,950,000 | 5% |
| ¥1,950,001 — ¥3,300,000 | 10% |
| ¥3,300,001 — ¥6,950,000 | 20% |
| ¥6,950,001 — ¥9,000,000 | 23% |
| ¥9,000,001 — ¥18,000,000 | 33% |
| ¥18,000,001 — ¥40,000,000 | 40% |
| ¥40,000,001+ | 45% |
+ Residence Tax ~10% + Reconstruction Tax 2.1%. Total effective tax can reach 55%+ for highest earners.
• 10% standard (most goods/services)
• 8% reduced (food,
non-alcoholic beverages)
• Included in displayed prices
• Tax-free shopping for
tourists (¥5,000+)
• Nenmatsu Chōsei: Employer handles tax filing!
• Most employees DON'T
file tax returns
• Company adjusts income tax in December
• Self-employed: Must file
Kakutei Shinkoku (確定申告) by Mar 15
• Basic deduction: ¥480,000
• Social insurance: Fully
deductible
• Spouse deduction: ¥380,000 (income limits)
•
Medical expenses: Over ¥100,000 = deductible
• Furusato
Nōzei: Tax-deductible donations to regions (get gifts back!)