Salary rate
Annual
Month
Semimonthly
Weekly
Day
Hour
Withholding
Salary
1,002,200 円
Income Tax
- 165,835 円
National Surtax
- 3,483 円
Health Insurance
- 49,308 円
Pension
- 59,475 円
Unemployment insurance
- 3,007 円
Total tax
- 281,108 円
Net pay
* 721,092 円
Marginal tax rate
37.2%
Average tax rate
28.0%
72.0%
Net pay
28.0%
Total tax
Total tax
Net pay
The Taxberg
721,092 円
Net pay
114,947 円
Tax the employer pays
281,108 円
Tax you pay
Total tax paid
396,055 円
Did you know your employer also pays tax on your salary? It costs the employer 114,947 円 to pay you 1,002,200 円. In other words, every time you spend 10 円 of your hard-earned money, 3.95 円 goes to the government.
Real tax rate
35.5%
So, with you and the employer both paying tax, what used to be a 28% tax rate now rises to 35.5%, meaning your real tax rate is actually 7.5% higher than what it seemed at first.
Summary
If you make 12,026,400 円 a year living in Japan, you will be taxed 3,373,293 円. That means that your net pay will be 8,653,107 円 per year, or 721,092 円 per month. Your average tax rate is 28.1% and your marginal tax rate is 37.2%. This marginal tax rate means that your immediate additional income will be taxed at this rate. For instance, an increase of 100 円 in your salary will be taxed 37.16 円, hence, your net pay will only increase by 62.84 円.
Bonus Example
A 1,000 円 bonus will generate an extra 628 円 of net incomes. A 5,000 円 bonus will generate an extra 3,142 円 of net incomes.
Europe
Country 
Net pay
Average tax
Rank
Russia
JPY 10462968
13.0%
1
Hungary
JPY 9801516
18.5%
2
Ukraine
JPY 9681252
19.5%
3
Switzerland
JPY 9645205
19.8%
4
Czech Republic
JPY 9099194
24.3%
5
United Kingdom
JPY 8644932
28.1%
6
France
JPY 8607975
28.4%
7
Norway
JPY 8297519
31.0%
8
Spain
JPY 8121173
32.5%
9
Ireland
JPY 8052656
33.0%
10
Denmark
JPY 7992391
33.5%
11
Austria
JPY 7525553
37.4%
12
Netherlands
JPY 7485827
37.8%
13
Sweden
JPY 7483236
37.8%
14
Luxembourg
JPY 7347674
38.9%
15
Poland
JPY 7346248
38.9%
16
Greece
JPY 7110195
40.9%
17
Romania
JPY 7035444
41.5%
18
Germany
JPY 6966147
42.1%
19
Finland
JPY 6629912
44.9%
20
Italy
JPY 6570889
45.4%
21
Portugal
JPY 6269937
47.9%
22
Belgium
JPY 5332569
55.7%
23
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North America
Country 
Net pay
Average tax
Rank
USA
JPY 8904817
26.0%
1
Canada
JPY 8289612
31.1%
2
Latin America
Country 
Net pay
Average tax
Rank
Guatemala
JPY 10763798
10.5%
1
Chile
JPY 9703691
19.3%
2
Costa Rica
JPY 9553081
20.6%
3
Puerto Rico
JPY 9139963
24.0%
4
Panama
JPY 9051009
24.7%
5
Ecuador
JPY 8869377
26.3%
6
Brazil
JPY 8805504
26.8%
7
Colombia
JPY 8792285
26.9%
8
Uruguay
JPY 8727536
27.4%
9
Peru
JPY 8578814
28.7%
10
Mexico
JPY 8386743
30.3%
11
Argentina
JPY 7816089
35.0%
12
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NOTE* Withholding is calculated based on the tables of Japan, income tax. For simplification purposes some variables (such as marital status and others) have been assumed. This document does not represent legal authority and shall be used for approximation purposes only.