Salary rate
Annual
Month
Semimonthly
Weekly
Day
Hour
Withholding
Salary
589,310 円
Income Tax
- 65,300 円
National Surtax
- 1,371 円
Health Insurance
- 28,994 円
Pension
- 53,922 円
Unemployment insurance
- 1,768 円
Total tax
- 151,355 円
Net pay
* 437,955 円
Marginal tax rate
31.8%
Average tax rate
25.7%
74.3%
Net pay
25.7%
Total tax
Total tax
Net pay
The Taxberg
437,955 円
Net pay
86,540 円
Tax the employer pays
151,355 円
Tax you pay
Total tax paid
237,896 円
Did you know your employer also pays tax on your salary? It costs the employer 86,540 円 to pay you 589,310 円. In other words, every time you spend 10 円 of your hard-earned money, 4.04 円 goes to the government.
Real tax rate
35.2%
So, with you and the employer both paying tax, what used to be a 25.7% tax rate now rises to 35.2%, meaning your real tax rate is actually 9.5% higher than what it seemed at first.
Summary
If you make 7,071,720 円 a year living in Japan, you will be taxed 1,816,265 円. That means that your net pay will be 5,255,455 円 per year, or 437,955 円 per month. Your average tax rate is 25.7% 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.
Compare average tax
North America
Country 
Net pay
Average tax
Rank
USA
JPY 5598195
20.8%
1
Canada
JPY 5055715
28.5%
2
Latin America
Country 
Net pay
Average tax
Rank
Guatemala
JPY 6378504
9.8%
1
Puerto Rico
JPY 5963749
15.7%
2
Costa Rica
JPY 5919409
16.3%
3
Chile
JPY 5821560
17.7%
4
Ecuador
JPY 5701532
19.4%
5
Panama
JPY 5603680
20.8%
6
Colombia
JPY 5452494
22.9%
7
Peru
JPY 5305043
25.0%
8
Brazil
JPY 5213361
26.3%
9
Mexico
JPY 5188467
26.6%
10
Uruguay
JPY 4853959
31.4%
11
Argentina
JPY 4595547
35.0%
12
Show more
Middle East
Country 
Net pay
Average tax
Rank
United Arab Emirates
JPY 6718134
5.0%
1
Qatar
JPY 6718134
5.0%
2
Bahrain
JPY 6505980
8.0%
3
Oman
JPY 6505981
8.0%
4
Saudi Arabia
JPY 6364548
10.0%
5
Kuwait
JPY 6293832
11.0%
6
Israel
JPY 5590596
20.9%
7
Egypt
JPY 5346275
24.4%
8
Lebanon
JPY 5332885
24.6%
9
Turkey
JPY 4148104
41.3%
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.