Salary rate
Annual
Month
Semimonthly
Weekly
Day
Hour
Withholding
Salary
3,366,830 円
Income Tax
- 1,058,547 円
National Surtax
- 22,229 円
Health Insurance
- 68,388 円
Pension
- 59,475 円
Unemployment insurance
- 10,100 円
Total tax
- 1,218,740 円
Net pay
* 2,148,090 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
2,148,090 円
Net pay
148,272 円
Tax the employer pays
1,218,740 円
Tax you pay
Total tax paid
1,367,012 円
Did you know your employer also pays tax on your salary? It costs the employer 148,272 円 to pay you 3,366,830 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 40,401,960 円 a year living in Japan, you will be taxed 14,624,875 円. That means that your net pay will be 25,777,085 円 per year, or 2,148,090 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 41.01 円, hence, your net pay will only increase by 58.99 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 2,950 円 of net incomes.
Compare average tax
North America
Country 
Net pay
Average tax
Rank
USA
JPY 26054033
35.5%
1
Canada
JPY 22373814
44.6%
2
Asia / Pacific
Country 
Net pay
Average tax
Rank
Kazakhstan
JPY 35315095
12.6%
1
Hong Kong
JPY 34038767
15.8%
2
Singapore
JPY 32809337
18.8%
3
Thailand
JPY 28383208
29.8%
4
Taiwan
JPY 28119889
30.4%
5
Indonesia
JPY 27883678
31.0%
6
Pakistan
JPY 26949194
33.3%
7
China
JPY 26593342
34.2%
8
Vietnam
JPY 26513812
34.4%
9
New Zealand
JPY 26284264
34.9%
10
Malaysia
JPY 26224195
35.1%
11
Philippines
JPY 26165830
35.2%
12
Japan
JPY 25777085
36.2%
13
South Korea
JPY 25374984
37.2%
14
Australia
JPY 24370756
39.7%
15
India
JPY 20242070
49.9%
16
Show more
Middle East
Country 
Net pay
Average tax
Rank
Kuwait
JPY 38769933
4.0%
1
Bahrain
JPY 38624256
4.4%
2
United Arab Emirates
JPY 38381862
5.0%
3
Qatar
JPY 38381862
5.0%
4
Saudi Arabia
JPY 38186771
5.5%
5
Oman
JPY 37169803
8.0%
6
Egypt
JPY 30343955
24.9%
7
Lebanon
JPY 30330565
24.9%
8
Israel
JPY 23968238
40.7%
9
Turkey
JPY 23559969
41.7%
10
Show more
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.