Salary rate
Annual
Month
Semimonthly
Weekly
Day
Hour
Withholding
Salary
623,920 円
Income Tax
- 71,236 円
National Surtax
- 1,496 円
Health Insurance
- 30,697 円
Pension
- 57,046 円
Unemployment insurance
- 1,872 円
Total tax
- 162,347 円
Net pay
* 461,573 円
Marginal tax rate
31.1%
Average tax rate
26.0%
74.0%
Net pay
26.0%
Total tax
Total tax
Net pay
The Taxberg
461,573 円
Net pay
91,580 円
Tax the employer pays
162,347 円
Tax you pay
Total tax paid
253,927 円
Did you know your employer also pays tax on your salary? It costs the employer 91,580 円 to pay you 623,920 円. In other words, every time you spend 10 円 of your hard-earned money, 4.07 円 goes to the government.
Real tax rate
35.5%
So, with you and the employer both paying tax, what used to be a 26% tax rate now rises to 35.5%, meaning your real tax rate is actually 9.5% higher than what it seemed at first.
Summary
If you make 7,487,040 円 a year living in Japan, you will be taxed 1,948,162 円. That means that your net pay will be 5,538,878 円 per year, or 461,573 円 per month. Your average tax rate is 26.0% and your marginal tax rate is 31.1%. 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 31.14 円, hence, your net pay will only increase by 68.86 円.
Bonus Example
A 1,000 円 bonus will generate an extra 689 円 of net incomes. A 5,000 円 bonus will generate an extra 3,443 円 of net incomes.
Compare average tax
North America
Country 
Net pay
Average tax
Rank
USA
JPY 5905486
21.1%
1
Canada
JPY 5343211
28.6%
2
Latin America
Country 
Net pay
Average tax
Rank
Guatemala
JPY 6746096
9.9%
1
Puerto Rico
JPY 6243466
16.6%
2
Costa Rica
JPY 6235364
16.7%
3
Chile
JPY 6178714
17.5%
4
Ecuador
JPY 5945720
20.6%
5
Panama
JPY 5917869
21.0%
6
Colombia
JPY 5728226
23.5%
7
Peru
JPY 5603903
25.2%
8
Brazil
JPY 5514468
26.4%
9
Mexico
JPY 5465639
27.0%
10
Uruguay
JPY 5106158
31.8%
11
Argentina
JPY 4865505
35.0%
12
Show more
Africa
Country 
Net pay
Average tax
Rank
Angola
JPY 5473462
26.9%
1
South Africa
JPY 5356316
28.5%
2
Kenya
JPY 5318834
29.0%
3
Mozambique
JPY 5206621
30.5%
4
Nigeria
JPY 5111795
31.7%
5
Ghana
JPY 5106043
31.8%
6
Ivory Coast
JPY 4964287
33.7%
7
Morocco
JPY 4884505
34.8%
8
Cameroon
JPY 4747983
36.6%
9
Senegal
JPY 4668106
37.7%
10
Uganda
JPY 4667215
37.7%
11
Zambia
JPY 4649429
37.9%
12
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.