Japan Personal Income Tax
Detailed personal income tax rates and rules for Japan in 2026.
Japan imposes a national progressive income tax with seven brackets ranging from 5% to 45%. In addition, a flat local inhabitant tax (comprised of prefectural and municipal taxes) of approximately 10% applies to taxable income, bringing the combined top marginal rate to roughly 55%. A special reconstruction surtax of 2.1% is also applied to the base national income tax amount through 2037 to fund earthquake recovery efforts.
| Income Range (JPY) | Tax Rate |
|---|---|
| ¥0 – ¥1.9M | 5% |
| ¥2.0M – ¥3.3M | 10% |
| ¥3.3M – ¥7.0M | 20% |
| ¥7.0M – ¥9.0M | 23% |
| ¥9.0M – ¥18.0M | 33% |
| ¥18.0M – ¥40.0M | 40% |
| ¥40.0M+ | 45% |
Filing Deadline
March 15
Residency Rule
Residents are taxed on worldwide income. Non-permanent residents (those who have lived in Japan for 5 years or less within the past 10 years and do not hold permanent residency) are taxed on Japan-sourced income plus foreign-sourced income remitted to Japan. Non-residents are taxed only on Japan-sourced income.
Additional Notes
The local inhabitant tax is technically assessed by prefectural and municipal governments and consists of an income-based portion (approximately 10%) and a per-capita flat-rate portion (around ¥5,000 per year). Employment income earners receive a standard employment income deduction that reduces their taxable base. Various personal deductions are available including a basic deduction of up to ¥480,000, spouse deduction, dependent deductions, and deductions for social insurance premiums, life insurance, medical expenses, and hometown tax (furusato nozei) donations.
How Japan Income Tax compares
Japan’s top personal income tax rate of 55% is the 4th highest of 203 countries TaxAtlas tracks, above the global average of 27.7% and Asia’s regional average of 22.2%.
