Salary rate
Annual
Month
Semimonthly
Weekly
Day
Hour
Withholding
Salary
12,500 円
Income Tax
- 535 円
National Surtax
- 11.24 円
Health Insurance
- 615 円
Pension
- 1,144 円
Unemployment insurance
- 37.50 円
Total tax
- 2,343 円
Net pay
* 10,157 円
Marginal tax rate
18.7%
Average tax rate
18.7%
81.3%
Net pay
18.7%
Total tax
Total tax
Net pay
The Taxberg
10,157 円
Net pay
1,836 円
Tax the employer pays
2,343 円
Tax you pay
Total tax paid
4,178 円
Did you know your employer also pays tax on your salary? It costs the employer 1,836 円 to pay you 12,500 円. In other words, every time you spend 10 円 of your hard-earned money, 3.34 円 goes to the government.
Real tax rate
29.1%
So, with you and the employer both paying tax, what used to be a 18.7% tax rate now rises to 29.1%, meaning your real tax rate is actually 10.4% higher than what it seemed at first.
Summary
If you make 150,000 円 a year living in Japan, you will be taxed 28,112 円. That means that your net pay will be 121,888 円 per year, or 10,157 円 per month. Your average tax rate is 18.7% and your marginal tax rate is 18.7%. 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 18.74 円, hence, your net pay will only increase by 81.26 円.
Bonus Example
A 1,000 円 bonus will generate an extra 813 円 of net incomes. A 5,000 円 bonus will generate an extra 4,063 円 of net incomes.
North America
Country 
Net pay
Average tax
Rank
Canada
JPY 143581
4.3%
1
USA
JPY 137009
8.7%
2
Middle East
Country 
Net pay
Average tax
Rank
Saudi Arabia
JPY 150000
0.0%
1
United Arab Emirates
JPY 142500
5.0%
2
Qatar
JPY 142500
5.0%
3
Bahrain
JPY 137998
8.0%
4
Oman
JPY 138000
8.0%
5
Kuwait
JPY 133500
11.0%
6
Lebanon
JPY 130692
12.9%
7
Israel
JPY 130275
13.2%
8
Egypt
JPY 128369
14.4%
9
Turkey
JPY 125863
16.1%
10
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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.