Salary rate
Annual
Month
Semimonthly
Weekly
Day
Hour
Withholding
Salary
578,160 円
Income Tax
- 63,391 円
National Surtax
- 1,331 円
Health Insurance
- 28,445 円
Pension
- 52,902 円
Unemployment insurance
- 1,734 円
Total tax
- 147,803 円
Net pay
* 430,357 円
Marginal tax rate
31.9%
Average tax rate
25.6%
74.4%
Net pay
25.6%
Total tax
Total tax
Net pay
The Taxberg
430,357 円
Net pay
84,903 円
Tax the employer pays
147,803 円
Tax you pay
Total tax paid
232,706 円
Did you know your employer also pays tax on your salary? It costs the employer 84,903 円 to pay you 578,160 円. In other words, every time you spend 10 円 of your hard-earned money, 4.02 円 goes to the government.
Real tax rate
35.1%
So, with you and the employer both paying tax, what used to be a 25.6% tax rate now rises to 35.1%, meaning your real tax rate is actually 9.5% higher than what it seemed at first.
Summary
If you make 6,937,920 円 a year living in Japan, you will be taxed 1,773,642 円. That means that your net pay will be 5,164,278 円 per year, or 430,357 円 per month. Your average tax rate is 25.6% and your marginal tax rate is 31.9%. 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 31.86 円, hence, your net pay will only increase by 68.14 円.
Bonus Example
A 1,000 円 bonus will generate an extra 681 円 of net incomes. A 5,000 円 bonus will generate an extra 3,407 円 of net incomes.
Compare average tax
North America
Country 
Net pay
Average tax
Rank
USA
JPY 5499198
20.7%
1
Canada
JPY 4967664
28.4%
2
Asia / Pacific
Country 
Net pay
Average tax
Rank
Hong Kong
JPY 6269848
9.6%
1
Taiwan
JPY 6047009
12.8%
2
Thailand
JPY 5771400
16.8%
3
South Korea
JPY 5616552
19.1%
4
Kazakhstan
JPY 5579459
19.6%
5
Australia
JPY 5505573
20.7%
6
New Zealand
JPY 5384019
22.4%
7
Singapore
JPY 5323787
23.3%
8
Indonesia
JPY 5256239
24.2%
9
Pakistan
JPY 5197560
25.1%
10
Japan
JPY 5164278
25.6%
11
Malaysia
JPY 5066845
27.0%
12
Philippines
JPY 4976455
28.3%
13
Vietnam
JPY 4768181
31.3%
14
China
JPY 4554554
34.4%
15
India
JPY 4296826
38.1%
16
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Latin America
Country 
Net pay
Average tax
Rank
Guatemala
JPY 6260081
9.8%
1
Puerto Rico
JPY 5873634
15.3%
2
Costa Rica
JPY 5817621
16.2%
3
Chile
JPY 5706517
17.8%
4
Ecuador
JPY 5622864
19.0%
5
Panama
JPY 5502460
20.7%
6
Colombia
JPY 5363033
22.7%
7
Peru
JPY 5207871
24.9%
8
Brazil
JPY 5116356
26.3%
9
Mexico
JPY 5099025
26.5%
10
Uruguay
JPY 4772711
31.2%
11
Argentina
JPY 4508577
35.0%
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.