Salary rate
Annual
Month
Semimonthly
Weekly
Day
Hour
Withholding
Salary
1,042,167 円
Income Tax
- 178,336 円
National Surtax
- 3,745 円
Health Insurance
- 51,275 円
Pension
- 59,475 円
Unemployment insurance
- 3,127 円
Total tax
- 295,957 円
Net pay
* 746,210 円
Marginal tax rate
37.2%
Average tax rate
28.4%
71.6%
Net pay
28.4%
Total tax
Total tax
Net pay
The Taxberg
746,210 円
Net pay
117,159 円
Tax the employer pays
295,957 円
Tax you pay
Total tax paid
413,116 円
Did you know your employer also pays tax on your salary? It costs the employer 117,159 円 to pay you 1,042,167 円. In other words, every time you spend 10 円 of your hard-earned money, 3.96 円 goes to the government.
Real tax rate
35.6%
So, with you and the employer both paying tax, what used to be a 28.4% tax rate now rises to 35.6%, meaning your real tax rate is actually 7.2% higher than what it seemed at first.
Summary
If you make 12,506,004 円 a year living in Japan, you will be taxed 3,551,486 円. That means that your net pay will be 8,954,518 円 per year, or 746,210 円 per month. Your average tax rate is 28.4% 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.
Compare average tax
North America
Country 
Net pay
Average tax
Rank
USA
JPY 9212088
26.3%
1
Canada
JPY 8561265
31.5%
2
Latin America
Country 
Net pay
Average tax
Rank
Guatemala
JPY 11188286
10.5%
1
Chile
JPY 10037495
19.7%
2
Costa Rica
JPY 9896478
20.9%
3
Puerto Rico
JPY 9424607
24.6%
4
Panama
JPY 9371145
25.1%
5
Colombia
JPY 9153157
26.8%
6
Brazil
JPY 9153216
26.8%
7
Ecuador
JPY 9151660
26.8%
8
Uruguay
JPY 9068894
27.5%
9
Peru
JPY 8872571
29.1%
10
Mexico
JPY 8702359
30.4%
11
Argentina
JPY 8127832
35.0%
12
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Africa
Country 
Net pay
Average tax
Rank
Angola
JPY 9124759
27.0%
1
Kenya
JPY 8832109
29.4%
2
Nigeria
JPY 8525694
31.8%
3
Mozambique
JPY 8468948
32.3%
4
Ghana
JPY 8426088
32.6%
5
Ivory Coast
JPY 8349911
33.2%
6
South Africa
JPY 8317505
33.5%
7
Morocco
JPY 7925937
36.6%
8
Cameroon
JPY 7803780
37.6%
9
Zambia
JPY 7736092
38.1%
10
Senegal
JPY 7679484
38.6%
11
Uganda
JPY 7427646
40.6%
12
Show more
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.