Salary rate
Annual
Month
Semimonthly
Weekly
Day
Hour
Withholding
Salary
1,745,002 円
Income Tax
- 420,171 円
National Surtax
- 8,824 円
Health Insurance
- 68,065 円
Pension
- 59,475 円
Unemployment insurance
- 5,235 円
Total tax
- 561,770 円
Net pay
* 1,183,232 円
Marginal tax rate
38.4%
Average tax rate
32.2%
67.8%
Net pay
32.2%
Total tax
Total tax
Net pay
The Taxberg
1,183,232 円
Net pay
138,218 円
Tax the employer pays
561,770 円
Tax you pay
Total tax paid
699,987 円
Did you know your employer also pays tax on your salary? It costs the employer 138,218 円 to pay you 1,745,002 円. In other words, every time you spend 10 円 of your hard-earned money, 4.01 円 goes to the government.
Real tax rate
37.2%
So, with you and the employer both paying tax, what used to be a 32.2% tax rate now rises to 37.2%, meaning your real tax rate is actually 5% higher than what it seemed at first.
Summary
If you make 20,940,024 円 a year living in Japan, you will be taxed 6,741,234 円. That means that your net pay will be 14,198,790 円 per year, or 1,183,232 円 per month. Your average tax rate is 32.2% and your marginal tax rate is 38.4%. 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 38.42 円, hence, your net pay will only increase by 61.58 円.
Bonus Example
A 1,000 円 bonus will generate an extra 616 円 of net incomes. A 5,000 円 bonus will generate an extra 3,079 円 of net incomes.
Compare average tax
North America
Country 
Net pay
Average tax
Rank
USA
JPY 14448213
31.0%
1
Canada
JPY 13152907
37.2%
2
Middle East
Country 
Net pay
Average tax
Rank
United Arab Emirates
JPY 19893023
5.0%
1
Qatar
JPY 19893023
5.0%
2
Bahrain
JPY 19356938
7.6%
3
Kuwait
JPY 19307998
7.8%
4
Oman
JPY 19264823
8.0%
5
Saudi Arabia
JPY 18846022
10.0%
6
Egypt
JPY 15747503
24.8%
7
Lebanon
JPY 15734113
24.9%
8
Israel
JPY 13762047
34.3%
9
Turkey
JPY 12225143
41.6%
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.