Salary rate
Annual
Month
Semimonthly
Weekly
Day
Hour
Withholding
Salary
3,365,964 円
Income Tax
- 1,058,201 円
National Surtax
- 22,222 円
Health Insurance
- 68,388 円
Pension
- 59,475 円
Unemployment insurance
- 10,098 円
Total tax
- 1,218,384 円
Net pay
* 2,147,580 円
Marginal tax rate
41.0%
Average tax rate
36.2%
63.8%
Net pay
36.2%
Total tax
Total tax
Net pay
The Taxberg
2,147,580 円
Net pay
148,267 円
Tax the employer pays
1,218,384 円
Tax you pay
Total tax paid
1,366,652 円
Did you know your employer also pays tax on your salary? It costs the employer 148,267 円 to pay you 3,365,964 円. In other words, every time you spend 10 円 of your hard-earned money, 4.06 円 goes to the government.
Real tax rate
38.9%
So, with you and the employer both paying tax, what used to be a 36.2% tax rate now rises to 38.9%, meaning your real tax rate is actually 2.7% higher than what it seemed at first.
Summary
If you make 40,391,568 円 a year living in Japan, you will be taxed 14,620,612 円. That means that your net pay will be 25,770,956 円 per year, or 2,147,580 円 per month. Your average tax rate is 36.2% and your marginal tax rate is 41.0%. 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 41.02 円, hence, your net pay will only increase by 58.98 円.
Bonus Example
A 1,000 円 bonus will generate an extra 590 円 of net incomes. A 5,000 円 bonus will generate an extra 2,949 円 of net incomes.
North America
Country 
Net pay
Average tax
Rank
USA
JPY 26048316
35.5%
1
Canada
JPY 22368985
44.6%
2
Asia / Pacific
Country 
Net pay
Average tax
Rank
Kazakhstan
JPY 35305743
12.6%
1
Hong Kong
JPY 34030142
15.8%
2
Singapore
JPY 32801189
18.8%
3
Thailand
JPY 28376454
29.8%
4
Taiwan
JPY 28113654
30.4%
5
Indonesia
JPY 27876653
31.0%
6
Pakistan
JPY 26942440
33.3%
7
China
JPY 26587627
34.2%
8
Vietnam
JPY 26507057
34.4%
9
New Zealand
JPY 26277925
34.9%
10
Malaysia
JPY 26217813
35.1%
11
Philippines
JPY 26159379
35.2%
12
Japan
JPY 25770956
36.2%
13
South Korea
JPY 25369233
37.2%
14
Australia
JPY 24365249
39.7%
15
India
JPY 20236978
49.9%
16
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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.