Salary rate
Annual
Month
Semimonthly
Weekly
Day
Hour
Withholding
Salary
1,057,872 円
Income Tax
- 183,248 円
National Surtax
- 3,848 円
Health Insurance
- 52,047 円
Pension
- 59,475 円
Unemployment insurance
- 3,174 円
Total tax
- 301,792 円
Net pay
* 756,080 円
Marginal tax rate
37.1%
Average tax rate
28.5%
71.5%
Net pay
28.5%
Total tax
Total tax
Net pay
The Taxberg
756,080 円
Net pay
118,028 円
Tax the employer pays
301,792 円
Tax you pay
Total tax paid
419,820 円
Did you know your employer also pays tax on your salary? It costs the employer 118,028 円 to pay you 1,057,872 円. In other words, every time you spend 10 円 of your hard-earned money, 3.97 円 goes to the government.
Real tax rate
35.7%
So, with you and the employer both paying tax, what used to be a 28.5% tax rate now rises to 35.7%, meaning your real tax rate is actually 7.2% higher than what it seemed at first.
Summary
If you make 12,694,464 円 a year living in Japan, you will be taxed 3,621,507 円. That means that your net pay will be 9,072,957 円 per year, or 756,080 円 per month. Your average tax rate is 28.5% 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 37.15 円, hence, your net pay will only increase by 62.85 円.
Bonus Example
A 1,000 円 bonus will generate an extra 629 円 of net incomes. A 5,000 円 bonus will generate an extra 3,143 円 of net incomes.
North America
Country 
Net pay
Average tax
Rank
USA
JPY 9333084
26.5%
1
Canada
JPY 8667915
31.7%
2
Latin America
Country 
Net pay
Average tax
Rank
Guatemala
JPY 11355088
10.6%
1
Chile
JPY 10168663
19.9%
2
Costa Rica
JPY 10031415
21.0%
3
Puerto Rico
JPY 9536459
24.9%
4
Panama
JPY 9496943
25.2%
5
Colombia
JPY 9295030
26.8%
6
Brazil
JPY 9289850
26.8%
7
Ecuador
JPY 9262582
27.0%
8
Uruguay
JPY 9203031
27.5%
9
Peru
JPY 8988003
29.2%
10
Mexico
JPY 8826742
30.5%
11
Argentina
JPY 8250331
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.