Salary rate
Annual
Month
Semimonthly
Weekly
Day
Hour
Withholding
Salary
578,688 円
Income Tax
- 63,481 円
National Surtax
- 1,333 円
Health Insurance
- 28,471 円
Pension
- 52,950 円
Unemployment insurance
- 1,736 円
Total tax
- 147,972 円
Net pay
* 430,716 円
Marginal tax rate
31.8%
Average tax rate
25.6%
74.4%
Net pay
25.6%
Total tax
Total tax
Net pay
The Taxberg
430,716 円
Net pay
84,980 円
Tax the employer pays
147,972 円
Tax you pay
Total tax paid
232,952 円
Did you know your employer also pays tax on your salary? It costs the employer 84,980 円 to pay you 578,688 円. In other words, every time you spend 10 円 of your hard-earned money, 4.03 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 6,944,256 円 a year living in Japan, you will be taxed 1,775,660 円. That means that your net pay will be 5,168,596 円 per year, or 430,716 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 31.85 円, hence, your net pay will only increase by 68.15 円.
Bonus Example
A 1,000 円 bonus will generate an extra 682 円 of net incomes. A 5,000 円 bonus will generate an extra 3,408 円 of net incomes.
North America
Country 
Net pay
Average tax
Rank
USA
JPY 5503886
20.7%
1
Canada
JPY 4971834
28.4%
2
Latin America
Country 
Net pay
Average tax
Rank
Guatemala
JPY 6265688
9.8%
1
Puerto Rico
JPY 5877902
15.4%
2
Costa Rica
JPY 5822441
16.2%
3
Chile
JPY 5711965
17.8%
4
Ecuador
JPY 5626589
19.0%
5
Panama
JPY 5507252
20.7%
6
Colombia
JPY 5367269
22.7%
7
Peru
JPY 5212472
24.9%
8
Brazil
JPY 5120949
26.3%
9
Mexico
JPY 5103260
26.5%
10
Uruguay
JPY 4776558
31.2%
11
Argentina
JPY 4512696
35.0%
12
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Middle East
Country 
Net pay
Average tax
Rank
United Arab Emirates
JPY 6597043
5.0%
1
Qatar
JPY 6597043
5.0%
2
Bahrain
JPY 6388714
8.0%
3
Oman
JPY 6388715
8.0%
4
Saudi Arabia
JPY 6249830
10.0%
5
Kuwait
JPY 6180387
11.0%
6
Israel
JPY 5500862
20.8%
7
Egypt
JPY 5250677
24.4%
8
Lebanon
JPY 5237287
24.6%
9
Turkey
JPY 4073868
41.3%
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.