Salary rate
Annual
Month
Semimonthly
Weekly
Day
Hour
Withholding
Salary
163,860 円
Income Tax
- 7,016 円
National Surtax
- 147 円
Health Insurance
- 8,062 円
Pension
- 14,993 円
Unemployment insurance
- 492 円
Total tax
- 30,710 円
Net pay
* 133,150 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
133,150 円
Net pay
24,063 円
Tax the employer pays
30,710 円
Tax you pay
Total tax paid
54,773 円
Did you know your employer also pays tax on your salary? It costs the employer 24,063 円 to pay you 163,860 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 1,966,320 円 a year living in Japan, you will be taxed 368,516 円. That means that your net pay will be 1,597,804 円 per year, or 133,150 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.
Compare average tax
North America
Country 
Net pay
Average tax
Rank
USA
JPY 1767417
10.1%
1
Canada
JPY 1496541
23.9%
2
Latin America
Country 
Net pay
Average tax
Rank
Puerto Rico
JPY 1807639
8.1%
1
Colombia
JPY 1778441
9.6%
2
Guatemala
JPY 1777779
9.6%
3
Ecuador
JPY 1777454
9.6%
4
Costa Rica
JPY 1759856
10.5%
5
Panama
JPY 1739798
11.5%
6
Mexico
JPY 1625215
17.4%
7
Chile
JPY 1615342
17.9%
8
Uruguay
JPY 1570121
20.2%
9
Brazil
JPY 1543505
21.5%
10
Peru
JPY 1536058
21.9%
11
Argentina
JPY 1277037
35.1%
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.