Salary rate
Annual
Month
Semimonthly
Weekly
Day
Hour
Withholding
Salary
1,044,880 円
Income Tax
- 179,185 円
National Surtax
- 3,763 円
Health Insurance
- 51,408 円
Pension
- 59,475 円
Unemployment insurance
- 3,135 円
Total tax
- 296,965 円
Net pay
* 747,915 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
747,915 円
Net pay
117,309 円
Tax the employer pays
296,965 円
Tax you pay
Total tax paid
414,274 円
Did you know your employer also pays tax on your salary? It costs the employer 117,309 円 to pay you 1,044,880 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 12,538,560 円 a year living in Japan, you will be taxed 3,563,582 円. That means that your net pay will be 8,974,978 円 per year, or 747,915 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 9232991
26.4%
1
Canada
JPY 8579689
31.6%
2
Asia / Pacific
Country 
Net pay
Average tax
Rank
Hong Kong
JPY 10912145
13.0%
1
Taiwan
JPY 10414786
16.9%
2
Kazakhstan
JPY 10238035
18.4%
3
Singapore
JPY 10112117
19.4%
4
Thailand
JPY 9789799
21.9%
5
South Korea
JPY 9576826
23.6%
6
Australia
JPY 9154252
27.0%
7
China
JPY 9118857
27.3%
8
New Zealand
JPY 9058599
27.8%
9
Indonesia
JPY 9048020
27.8%
10
Japan
JPY 8974978
28.4%
11
Pakistan
JPY 8837984
29.5%
12
Malaysia
JPY 8691528
30.7%
13
Philippines
JPY 8635540
31.1%
14
Vietnam
JPY 8402602
33.0%
15
India
JPY 7122395
43.2%
16
Show more
Latin America
Country 
Net pay
Average tax
Rank
Guatemala
JPY 11217101
10.5%
1
Chile
JPY 10060154
19.8%
2
Costa Rica
JPY 9919788
20.9%
3
Puerto Rico
JPY 9443931
24.7%
4
Panama
JPY 9392876
25.1%
5
Colombia
JPY 9177666
26.8%
6
Brazil
JPY 9176820
26.8%
7
Ecuador
JPY 9170821
26.9%
8
Uruguay
JPY 9092066
27.5%
9
Peru
JPY 8892512
29.1%
10
Mexico
JPY 8723846
30.4%
11
Argentina
JPY 8148993
35.0%
12
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Middle East
Country 
Net pay
Average tax
Rank
United Arab Emirates
JPY 11911632
5.0%
1
Qatar
JPY 11911632
5.0%
2
Bahrain
JPY 11535475
8.0%
3
Oman
JPY 11535474
8.0%
4
Saudi Arabia
JPY 11284704
10.0%
5
Kuwait
JPY 11247154
10.3%
6
Egypt
JPY 9446405
24.7%
7
Lebanon
JPY 9433015
24.8%
8
Israel
JPY 8956409
28.6%
9
Turkey
JPY 7332046
41.5%
10
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.